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Kansas is an important producer of agricultural products and a major
exporter. In 2006, the State's cash farm receipts totaled $10 billion. Kansas
ranked sixth among all 50 States in 2006 in the value of its agricultural
exports, which reached an estimated $3.2 billion. Agricultural exports help
boost farm prices and income, while supporting about 38,100 jobs both on the
farm and off the farm in food processing, storage, and transportation. Exports
are increasingly important to Kansas' agricultural and statewide economy.
Measured as exports divided by farm cash receipts, the State's reliance on
agricultural exports was 32 percent in 2006.
Kansas’ top five agricultural exports in 2006 were:
• wheat and products -- $912 million
• feed grains and products -- $558 million
• live animals and meat -- $450 million
• feeds and fodders -- $444 million
• hides and skins -- $382 million
World demand for these products is increasing,
but so is competition among suppliers. If Kansas’ 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 Kansas Agriculture
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.
Kansas, 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.
Kansas, the nation’s largest wheat grower,
benefited from limits set on subsidized wheat exports as a result of the Uruguay
Round agreement. These limits influenced the European Union’s (EU) decision to
change its Common Agricultural Policy, ultimately lowering internal EU market
prices to world price levels. As a result, annual EU wheat exports dropped from
22 million tons to about 14 million tons as lower market prices stimulated
domestic use, and annual EU wheat imports jumped from 1.5 million tons to 7
million tons as the levied margin of protection fell. This translates to an
11-percent reduction in global export competition and a 5.5-million-ton increase
in EU wheat imports, a third of which is supplied by the United States.
Export Success Stories
As a pork producing state, Kansas has benefited from Market
Access Program (MAP) funding in Japan where marketing efforts conducted by the
U.S. Meat Export Federation contributed to a 32 percent increase in U.S. pork
exports by volume and 34 percent increase by value for the first seven months of
2004 compared to the same period in 2003.