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Ohio is an important producer and exporter of agricultural products. In 2008,
the State's cash farm receipts totaled $7.9 billion. Ohio ranked 16th among all
50 states in 2008 with agricultural exports estimated at $2.9 billion.
Agricultural exports help boost farm prices and income, while supporting about
33,590 jobs both on the farm and off the farm in food processing, storage, and
transportation. A leading soybean producer, Ohio has a major interest in the
exports of that important contributor to the state’s economy. Measured as
exports divided by farm cash receipts, the State's reliance on agricultural
exports was 37 percent in 2008.
Ohio's top agricultural exports in 2008 were:
soybeans and products -- $1 billion
feed grains and products -- $570 million
wheat and products -- $518 million
poultry and products -- $72 million
World demand for these products is increasing, but so is competition among
suppliers. If Ohio'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 Ohio Agriculture
Ohio, one of the nation’s top 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.
One of the largest feed corn producers, Ohio 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. – Australian FTA, Ohio’s vegetable industry will benefit.
Australia’s 5-percent tariff would be eliminated on a number of U.S. vegetable
exports including sweet corn (frozen and canned). From 2001 through 2003, U.S.
suppliers annually shipped on average $21.5 million worth of vegetable and
vegetable products to Australia.
Export Success Stories
As a major soybean producer, Ohio has benefited from the efforts of the
American Soybean Association (ASA), in partnership with USDA, and various
producer organizations to increased demand for U.S. soybeans and meal in a
number of key markets in Asia. For example, Technical training in feeding soy
hulls in the swine industry in Malaysia has enhanced the competitiveness of US
soybeans and added an estimated $37 million in U.S. exports.
Ohio’s wheat industry has benefited from the efforts of U.S. Wheat Associates
to sell wheat to Thailand and Pakistan. Thailand's flour mills' participation in
U.S. Wheat Associates marketing programs has improved importers' ability to
refine contract specifications, understand the U.S. marketing system and develop
contacts with country elevators. This programming has facilitated identity
preserved purchases, improving trade. Sales in 2003/04 were up 46 percent
compared to the previous year. U.S. Wheat Associates have also convinced
Pakistan to revise new tender terms to make them acceptable by U.S. exporters.
As a result, U.S. export sales reach 326,000 metric tons vs. zero in the entire
previous marketing year.