January 2006

Missouri is an important producer and exporter of agricultural products. The State's farm cash receipts totaled $5.8 billion in 2004. Missouri ranked 14th among all 50 states in 2004, with agricultural exports estimated at $1.4 billion. Missouri ranks in the top-10 among states in exports of cotton, cottonseed, feeds and fodders, and rice. Agricultural exports help boost farm prices and income, while supporting about 21,420 jobs both on the farm and off the farm in food processing, storage, and transportation. Exports are increasingly important to Missouri's agricultural and statewide economy. Measured as exports divided by farm cash receipts, the State's reliance on agricultural exports was 24 percent in 2004.

Missouri’s top five agricultural exports in 2004 were:

World demand for these products is increasing, but so is competition among suppliers. If Missouri's 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 Missouri Agriculture

Missouri, one of the nation’s largest soybean producers, 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 U.S. exports of soybeans to that country by over six fold from 1999 to 2004, surpassing $2.4 billion this year.

As large feed corn producer, Missouri benefits 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.

As a major soybean producer, Missouri has benefited from the efforts of the American Soybean Association (ASA), in partnership with USDA, and various producer organizations to increase demand for U.S. soybeans and meal in a number of key markets in Asia. For example, ASA's work to distinguish the quality of U.S. dehulled soybean meal has enabled Korean importers to capitalize on the value-added U.S. product, resulting in 79,000 metric tons of exports in 2003, more than triple the 2001 level.

Last modified: Thursday, October 14, 2004 PM