Ohio farmers are directly affected by the amount of and the diversity of agricultural imports and exports.
U.S. agricultural exports have been larger than U.S. agricultural imports since 1960, generating a surplus in U.S. agricultural trade. This surplus helps counter the persistent deficit in nonagricultural U.S. merchandise trade. Even if there were a trade deficit in agricultural products, this does not imply a lack of competitiveness on the part of U.S. agriculture. Rather, it reflects increasing diversity in consumers’ food choices and changing relative exchange rates, which make U.S. goods relatively more/less expensive in international markets and import goods relatively less/more expensive.
These are topics we have been discussing on a regular basis in this column and something that needs repeating. Mainly because of the constant challenges we are are having in finding representation in the statehouse and in Washington, D.C., that really understands how important this is to the economic growth and security of this Nation.
U.S. consumers demand variety, quality, and convenience in the foods they consume. Simply look at the country of origin on the products you buy at the grocery store.
As Americans have become wealthier and more ethnically diverse, the American food basket reflects a growing share of tropical products, spices, and imported gourmet products. The more hispanics in the country the larger the section at Wally-World has become. If you travel to other parts of the country its obvious who those minorities are like the Southeast Asian influence in the Pacific Northwest of America or the Caribbean/Cuban influence in southern Florida, and so on.
Seasonal and climatic factors drive U.S. imports of popular types of fruits and vegetables and tropical products, such as cocoa and coffee. In addition, a growing share of U.S. imports can be attributed to intra-industry trade, whereby agricultural-processing industries based in the United States carry out certain processing steps offshore and import products at different levels of processing from their subsidiaries in foreign markets.
We talked about the TPP and various trade agreements that will effect he value of what our farmers are producing for the next 10-20 years. But emerging markets like Cuba could have a greater impact immediately. U.S. agricultural exports to Cuba averaged $365 million per year, with chicken meat, corn, soybean meal, and soybeans accounting for 84 percent of the value of these exports.
Establishing a more normal economic relationship between the United States and Cuba would allow Cuba to resume exporting agricultural products to the United States and lead to additional growth in U.S. agricultural exports to Cuba. The United States is already one of Cuba’s leading suppliers of agricultural imports, thanks to a loosening of the U.S. economic embargo on Cuba in 2000 that allows for U.S. sales of agricultural products and medicine to Cuba. The executive actions announced in December 2014 relax U.S. restrictions on remittances and travel to Cuba and allow sales of agricultural equipment to small farmers. These steps by themselves could foster some increased agricultural trade with Cuba.
The same could be said for many South American countries who have relied on their production of oil and petrochemicals to carry the load of their economic balance. And with the oil market getting flooded with new production resources like here in the United States — those who relied so heavily on that product are now looking are other agricultural resources to supplement those loses by lowing the cost of their goods on a global market like soybeans, dairy, fruits and vegetables.
Ohio’s farmers and ranchers make an important contribution to the U.S. economy by ensuring a safe and reliable food supply, improving energy security and supporting job growth and economic development. Agriculture is particularly important to the economies of small towns and rural areas, like west-central Ohio, where farming supports a number of sectors, and has been and will continue to be our No. 1 industry.
Here’s seeing you, in Ohio Country!
