TPP could mean millions of dollars for Missouri agriculture

2 years 9 months 2 weeks ago Friday, October 28 2016 Oct 28, 2016 Friday, October 28, 2016 2:39:00 PM CDT October 28, 2016 in News
By: Nora Faris, KOMU 8 Reporter
loading

COLUMBIA - A foreign trade deal could send more of the Show-Me State’s soybeans to Singapore, more of its meat to Malaysia and more of the world’s money to Missouri farmers.

The Trans-Pacific Partnership, or TPP, is a comprehensive, multi-lateral free trade agreement between the U.S., Canada, Mexico and nine countries in the Asia-Pacific region.

Mike Deering, executive director of the Missouri Cattlemen’s Association, said the deal has far-reaching implications for Missouri’s farmers.

“TPP would open doors and limit tariff restrictions in key markets in the Pacific,” Deering said. “Most of agriculture’s customers live outside the U.S., so this expands our industry’s access to those global markets.”

Both Hillary Clinton and Donald Trump have expressed opposition to TPP, saying that the U.S. needs a stronger agreement that more aggressively bolsters the American manufacturing sector.

But Deering said, when it comes to trade deals, the U.S. can’t let perfect stand in the way of good.

“The candidates are correct in that agreements need to be better. They need to be more thoughtful,” Deering said. “The Missouri beef industry would love Japan to give us a 0 percent tariff, but in trade agreements, you usually can’t have the perfect deal on the first try.”

The agreement reduces or eliminates tariffs on some of Missouri’s key agricultural exports, including soybeans, pork and beef. The deal’s market expansion and free trade benefits could increase Missouri’s net agriculture exports by $105 million per year.

Congress hasn’t yet ratified the agreement, but several Missouri agriculture groups, including the Missouri Farm Bureau and Missouri Pork Association, have expressed support for the trade deal.

Farm incomes are expected to hit their lowest point since 2009 this year. The Rural Mainstreet Index, a monthly economic benchmark that measures the health of the farm economy, slumped to its lowest levels since April 2009 this month. According to the index, one in five grain farmers will experience negative cash flows this year. Some farmers are looking to TPP to boost falling farm incomes by providing additional outlets for farmers to market their commodities.

If the U.S. fails to ratify TPP, the country could lose market access and trade advantages across many industries, from agriculture to automobile manufacturing. The trade agreement won’t go into full effect without U.S. ratification, but other countries will likely move forward with bilateral trade deals if the U.S. fails to act. Delaying the ratification of TPP by even one year could cost the country as much as $94 billion in permanent lost income.

Agricultural exports currently support more than 30,000 Missouri jobs. In 2014, the U.S. Department of Agriculture estimated that every $1 billion generated by agricultural exports provided 7,550 American jobs.

Don Nikodim, executive director of the Missouri Pork Association, said Missouri agriculture needs TPP to keep up with its foreign competitors in the global agriculture industry.

“If the U.S. doesn't pass TPP, China is leading a coalition of other states to draft their own similar trade agreement," Nikodim said. "It's up to us to get engaged and get this agreement passed to ensure open trade and market access for U.S. farmers in the TPP countries."

Garrett Hawkins, national legislative programs director for Missouri Farm Bureau, said TPP could enhance the American sphere of influence in southeast Asia and the Pacific region, along with U.S. farmers' market share in expanding markets.

"We remind farmers and ranchers that every day that passes that we do not act on TPP is another day that we lose market share in critical countries, like Japan," Hawkins said. "But TPP doesn't just increase our market share in a region where we need to ramp up efforts. It also increases U.S. influence in a region of the world that could benefit from our leadership."

In order for TPP to take full effect, the U.S. must ratify the agreement before February 2018.

More News

Grid
List
COLUMBIA — One man was transported to University Hospital after a boating accident Saturday night. Cody Vaughn, 22, was... More >>
4 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 6:49:00 PM CDT August 18, 2019 in News
COLUMBIA — One dog got a helping hand from Jefferson City firefighters after it found itself in a sticky situation... More >>
4 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 6:28:00 PM CDT August 18, 2019 in News
KANSAS CITY, Mo. (AP) — Two men with handguns in their waistbands alarmed shoppers when they entered a Kansas City-area... More >>
5 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 5:51:00 PM CDT August 18, 2019 in News
COLUMBIA - The Band of Brothers biker group held a fundraiser for the "Mammogram Van" Sunday. The event was... More >>
9 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 2:02:00 PM CDT August 18, 2019 in News
COOPER COUNTY – The Missouri Department of Transportation will have crews working on Westbound Interstate 70 to replace concrete beginning... More >>
17 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 5:45:00 AM CDT August 18, 2019 in News
COLUMBIA - Neighbors were awakened by police chasing a vehicle through a west Columbia neighborhood early Sunday morning. KOMU... More >>
19 hours ago Sunday, August 18 2019 Aug 18, 2019 Sunday, August 18, 2019 3:23:00 AM CDT August 18, 2019 in News
COLUMBIA - The Columbia Mall will become home to a second Dillard’s and to a hotel, pending approval by... More >>
1 day ago Saturday, August 17 2019 Aug 17, 2019 Saturday, August 17, 2019 8:38:00 PM CDT August 17, 2019 in News
COLUMBIA - Vendors and shoppers met Saturday Aug. 17 to exchange items at Columbia Flea Swap. The flea market... More >>
1 day ago Saturday, August 17 2019 Aug 17, 2019 Saturday, August 17, 2019 3:51:00 PM CDT August 17, 2019 in News
COLUMBIA - No one was hurt when house caught fire Saturday morning. Firefighters responded to a home at the... More >>
1 day ago Saturday, August 17 2019 Aug 17, 2019 Saturday, August 17, 2019 3:17:00 PM CDT August 17, 2019 in News
COLUMBIA — Maries County deputies asked the public for help identifying two people who broke into a church and stole... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 9:45:00 PM CDT August 16, 2019 in News
COLUMBIA - The Cars 4 Kids event scheduled for Saturday has been postponed due to rain in the forecast. Organizers... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 6:04:00 PM CDT August 16, 2019 in News
COLUMBIA - Over 50 cats and dogs will be available for adoption at the Central Missouri Humane Society for a... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 5:47:00 PM CDT August 16, 2019 in News
COLUMBIA - One Columbia mother said a school bus driver let her son get off the bus more than a... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 4:41:00 PM CDT August 16, 2019 in News
JEFFERSON CITY - A U.S. District Judge ruled against State Rep. Cheri Toalson Reisch, R-Hallsville, in a lawsuit about her... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 4:24:00 PM CDT August 16, 2019 in News
COLUMBIA - A preliminary autopsy performed on Friday could not determine the gender or age of the infant remains found... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 3:46:00 PM CDT August 16, 2019 in News
KANSAS CITY (AP) — A series of earthquakes shook parts of Kansas on Friday morning near Hutchinson, knocking... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 3:38:00 PM CDT August 16, 2019 in News
COLUMBIA - The City of Columbia apologized after a community relations worker took a selfie at a crime scene. ... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 2:21:00 PM CDT August 16, 2019 in News
VIENNA - A relief fund has been established for six firefighters injured Friday fighting a fire turned explosion at a... More >>
2 days ago Friday, August 16 2019 Aug 16, 2019 Friday, August 16, 2019 12:34:00 PM CDT August 16, 2019 in News
Columbia, MO
Broken Clouds 79°
11pm 77°
12am 76°
1am 75°
2am 74°