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Ohio is an important producer and exporter of agricultural products. In 2006,
the State's cash farm receipts totaled $5.4 billion. Ohio ranked 13th among all
50 states in 2006 with agricultural exports estimated at $1.7 billion.
Agricultural exports help boost farm prices and income, while supporting about
20,300 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 31 percent in 2006.
Ohio's top five agricultural exports in 2006 were:
• soybeans and products -- $565 million
• feed grains and products -- $368 million
• wheat and products -- $215 million
• live animals and meat -- $54 million
• vegetables -- $62 million
• dairy products -- $49 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.