News Release:

Agricultural trade matters to farmers, American Farm Bureau president says

When one-third of U.S. agricultural products are exported, and more than one-fifth of Virginia’s farm economy relies on agricultural exports, trade can’t help but matter to farmers here and across the country.

That was the observation of Bob Stallman, president of the American Farm Bureau Federation, who delivered the Nov. 26 keynote address at the 2007 Virginia Farm Bureau Federation Annual Convention in Chantilly.

U.S. trade exports for 2007 are projected to be more than $80 billion, the highest in history, Stallman noted. The country is projected to see about $70 billion in imports. “We still have a positive trade balance in agriculture, and that’s something some other sectors of industry cannot say,” he said. He also noted that, in Virginia, agricultural exports support about 7,000 jobs, both on and off the farm, and that the commonwealth’s cash receipts for agricultural products in 2005 totalled $2.6 billion—of which $522 million was from exports.

Farm Bureau, Stallman said, works with the federal government, through economic analysis, lobbying on behalf of producers and showing support during negotiations on issues such as opening foreign markets, lowering tariffs and negotiating deals that benefit all of U.S. agriculture. “Our policy is clear on trade agreements,” he said. “We will support trade policy if, in the long run, they are good for American agriculture in the aggregate.”

Stallman addressed specific trade issues, including the Peru Free Trade Agreement, which recently passed in the U.S. House of Representatives and is expected to pass in the Senate when senators return from their Thanksgiving break. He told Farm Bureau members that the agreement would generate more than $700 million in ag exports while resolving current trade imbalances.

Currently, he explained, U.S. ag exports to Peru face an average tariff of 18 percent, while 99 percent of Peruvian ag products enter the United States facing no tariff.

Farm Bureau continues to push for FTAs with Columbia and Panama, which would generate $750 million and $125 million in exports, respectively, Stallman said. He added that a proposed FTA with South Korea is expected to bring $3 billion in exports provided concerns regarding beef can be resolved.

U.S. farmers have the resources, transportation system and knowledge base to feed not only this country but much of the rest of the world, Stallman said, “and all we want is the opportunity to do that—and that’s what trade is about.

With 148,000 members in 88 county Farm Bureaus, VFBF is Virginia’s largest farm organization. Farm Bureau is a non-governmental, nonpartisan, voluntary organization that supports its members through legislative lobbying, leadership programs, commodity marketing and risk management services, insurance products and other benefits.