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Utah produces agricultural products that are exported worldwide. In 2006, the
State's cash receipts from farming totaled $1.3 billion, and exports were
estimated at $304 million. These exports help boost farm prices and income,
while supporting jobs both on the farm and off the farm in food processing,
storage, and transportation. Measured as exports divided by farm cash receipts,
the State's reliance on agricultural exports was 23 percent in 2006.
Utah's top five agricultural exports in 2006 were:
• wheat and products -- $100 million
• hides and skins -- $76 million
• live animals and red meats -- $44 million
• feeds and fodders -- $18 million
• dairy products -- $17 million
World demand for agricultural products is
increasing, but so is competition among suppliers. If Utah's industries are to
compete successfully for export opportunities in the 21st century, they need
fair trade and more open access to growing global markets.
How Trade Agreements Benefit Utah Agriculture
Utah benefited from limits set on subsidized
wheat exports during the Uruguay Round. These limits influenced the EU's
decision to make changes to its Common Agricultural Policy and ultimately
lowered internal EU market prices to world price levels. Annual EU wheat exports
dropped from 22 million tons to about 14 million tons as lower market prices
stimulated domestic use. Meanwhile, 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.
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
Washington, Oregon, Idaho, and Utah are the
benefactors of joint export efforts by Northwest Cherries and the USDA under the
Market Access Program (MAP). With the new acreage of cherries in the northwest
coming into production, the export promotion program will be key to finding
overseas markets for the expanded U.S. production. Northwest Cherries are
marketed as "The Diamond of Fruit" creating a brand identity known throughout
the world. Because of the successful campaign, Northwest Cherries has been able
to demand higher prices and provide a product that is valued by importers,
retailers, and the consumers.