National Dairy Shrine

Kansas Ag News Headlines
Kansas Political, Ag Leaders Applaud USMCA Passage
Kansas Ag Connection - 01/17/2020

Citing its importance to Kansas exports and the state's economy, Governor Laura Kelly and Secretary of Agriculture Mike Beam expressed praise Thursday for passage of the U.S.-Mexico-Canada Agreement (USMCA) by a bipartisan vote of 89-10 in the U.S. Senate.

"This is an important and welcome development in Kansas, especially as our farmers and ranchers struggle to rebuild after an historic year of natural disasters," Kelly said. "With more than 95 percent of the world's consumers living outside the United States, world markets offer tremendous growth opportunities for Kansas agriculture. USMCA will create enhanced export opportunities and help Kansans capitalize on the increased global demand for food and agriculture products."

Beam also cited the positive impact for Kansas producers.

"This agreement is great news for Kansas, especially Kansas agriculture," he said. "Mexico and Canada are consistently in the top three trade partners for Kansas so maintaining these strong relationships is critical for agricultural exports in the state."

Canada and Mexico are Kansas' first and third largest export markets for Kansas food and agricultural commodities, totaling nearly $1.58 billion in 2018 or 41.1% of our total trade.

USMCA is a significant development for Kansas farmers and ranchers. With a downturn in commodity prices, the agriculture sector is at a critical crossroads. The passage of USMCA provides Kansas farmers, ranchers and agribusinesses a degree of certainty during some uncertain times. It also instills confidence in the state's top trade partners and neighbors that the U.S. can be counted on as reliable suppliers of food and agricultural commodities.

According to the office of U.S. Secretary of Agriculture Sonny Perdue, under USMCA all food and agricultural products that have had zero tariffs under the North American Free Trade Agreement (NAFTA) will remain at zero tariffs. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products.

The Kansas Corn Growers Association applauded this week's two trade actions.

"We'd like to thank our Kansas Senators Roberts and Moran for their leadership on getting the USMCA passed in the Senate," Kansas Corn CEO Greg Krissek said. "This solidifies our trading future with our neighbors and key customers for corn and corn products."

Mexico is the top export buyer for U.S. corn. Collectively, Mexico and Canada account for more than half of all U.S. exports of corn and corn products like ethanol, DDGS and red meat. The long-term stability provided by USMCA will further open the doors for increased ethanol exports to Canada and Mexico as they work toward an E10 gasoline baseline.

The U.S.-China Phase One agreement signed on Wednesday is a step in the right direction to resolving trade issues with China and restoring our trade relationship. KCGA supports the agreement, and joins the National Corn Growers Association in urging the administration quickly proceed with Phase 2 of the agreement and work to resolve retaliatory tariffs.

The Kansas Corn Commission has worked with partners like the U.S. Grains Council to build trade relationships and develop markets around the world to increase demand for corn and corn products. The value of exports to Kansas corn and corn products is worth nearly $645 million.

"In today's global economy, export markets are more important than ever for our growers," Krissek said. "The U.S. has the highest quality, most reliable supply of corn and other ag products. We will continue to work to build demand and market access for our products in China, Mexico, Canada and other countries around the world."

Other Kansas Headlines
Kelly Manufacturing
Copyright © 2020 - All Rights Reserved.