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Illinois is an important producer and exporter of agricultural products. In
fiscal year 2008, the State's cash farm receipts totaled $16 billion. Illinois
ranked third among all 50 states in 2008 with agricultural exports estimated at
$7.5 billion. Agricultural exports help boost farm prices and income, while
supporting about 86,872 jobs both on the farm and off the farm in food
processing, storage, and transportation. Exports remain important to Illinois’
agricultural and statewide economy. The State's reliance on agricultural exports
was 47 percent in 2008.
Illinois' top agricultural exports in fiscal year 2008 were:
- feed grains and products -- $2.8 billion
- soybeans and products -- $2.7 billion
- live animals and red meats -- $600 million
- wheat and products -- $427 million
World demand for these products is increasing, but so is competition among
suppliers. If Illinois farmers, ranchers, and food processors are to compete
successfully for the export opportunities of the 21st century, they need fair
trade and more open access. to growing global markets.
How Trade Agreements Benefit Illinois Agriculture
As one of the nation’s leading soybean producers, Illinois benefits under the
Uruguay Round agreement as South Korea reduced its tariffs on soybean oil by
14.5 percent from 1995 to 2004. Thus far, the tariff reduction has supported a
threefold increase in export volume. The Philippines reduced its tariffs on
soybean meal from 10 to 3 percent during the same period. China’s accession to
the WTO has helped to raise our exports of soybeans to that country by over six
fold from 1999 to 2004, surpassing $2.4 billion this year.
Illinois, one of the nation’s largest feed corn producers, benefited under
the NAFTA when Mexico converted its import licensing system for corn to a
transitional tariff-rate quota that will remain in effect until 2008. Under this
system, the volume of U.S. corn exports to Mexico has risen over 42 percent
since 1994, reaching 120 million bushels valued at $585 million in 2002.
Under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR),
U.S. prime and choice cuts of beef gain preferential access as applied tariffs
of 15 to 30 percent are immediately eliminated (except the Dominican Republic)
while those applied to other cuts are phased-out over 15 years. Tariffs on beef
offal and other beef products are phased out over 5 to 10 years. As part of the
agreement, all six countries are working toward the recognition of the U.S. meat
inspection and certification systems, which would replace the existing policy of
plant-by-plant inspections and approval. From 2001 through 2003, U.S. suppliers
annually shipped on average 4,094 metric tons valued at $9.8 million to all six
countries combined.
Export Success Stories
The American Soybean Association’s (ASA) promotion of Full Fat Soybean Meal (FFSBM)
using both Foreign Market Development program and producer checkoff funds from
the United Soybean Board, has resulted in three soybean crushers in Thailand
producing FFSBM and one commercial FFSBM producer increasing their production.
ASA's strategy is to increase the demand for U.S. beans and the competitiveness
of buyers of U.S. soybeans by improving their product line, thereby increasing
demand and customer preference for U.S. products. This has made FFSBM more
available to livestock producers while improving the quality and the cost of the
feed they produced. It is estimated that the target audience will consume an
additional 60,000 metric tons of soybeans valued at $16 million annually.