The United States must tell the world it is open for business when it comes to agricultural trade. That was the message of Nebraska Farm Bureau (NEFB) President Mark McHargue when he testified before House Ways and Means Subcommittee on Trade, April 18. The hearing, Countering China’s Trade and Investment Agenda: Opportunities for American Leadership, focused on the current state of the trade relationship between the United States and China.
“China remains a vital market for Nebraska goods as a consistent top three market for Nebraska products, year in and year out. At the same time, America’s and Nebraska’s farmers and ranchers are aware and concerned about the current geopolitical and national security concerns that exist between our nations,” said McHargue.
According to analysis by NEFB using data from the United States Department of Agriculture, prior to 2018, Nebraska agricultural exports to China ranged from $936 million to $1.045 billion and generally equated to 15 percent of Nebraska’s total agricultural exports. That equates to roughly $19,300 per farm in Nebraska. Following substantial declines in 2018 and 2019, NEFB’s analysis showed farmers and ranchers saw substantial growth return due to the U.S.-China Phase 1 Trade Agreement. In 2020, China imported approximately $28.7 billion worth of U.S. agriculture and food products and $35.6 billion in 2021. In 2022, a new record of $40.8 billion worth of U.S. agricultural and food products was exported into China, equating to $55,790 per farm and ranch in Nebraska.
“Farmers and ranchers have the same geopolitical, national security, copyright, and trade law concerns that many elected officials and industries have. But, given China’s role as a significant consumer of raw U.S. commodities, whether we like it or not, China is an important customer. We need them and they need us,” said McHargue.
McHargue also noted in his testimony that Nebraska is “The Beef State” as the cattle sector remains the largest portion of Nebraska’s agricultural industry. NEFB analysis shows Nebraska is among the top beef exporting states to China in the U.S. However, China continues to make significant investments in other countries such as Brazil to move away from their dependence on U.S. agricultural and food products. According to NEFB analysis, China’s ag exports from all destinations topped $216.9 billion in 2022, an increase of 5.5 percent, or $11.4 billion, from the year before. McHargue called on the Biden administration to lessen barriers and improve trade relations with China.
Source: nefb.org
Photo Credit: Nebraska Farm Bureau
Categories: Nebraska, Government & Policy