Agriculture Voice: Ratify agreements to rectify trade deficit

It is not the kind of material most of us look forward to reading when we sit in our favorite chair to spend some quiet time with a newspaper, magazine or book. Honestly, unless you were reading in bed to help yourself get sleepy, would you have any interest in reading the U.S. Department of Agriculture’s Outlook for U.S. Agriculture Trade? Me neither.

However, the report contains some very good news, and not just for farmers but for all Americans. In its report, the USDA projected fiscal 2010 agricultural exports will total $107.5 billion, an increase of more than $3 billion since previous estimates. Additionally, USDA projects fiscal 2011 agricultural exports are expected to rise to $113 billion, an increase of more than $5 billion from this year’s projection.

Great for farmers, perhaps, but what’s in it for us? Well, agriculture exports positively impact the U.S. balance of trade, which desperately needs a boost. The United States spends way more money to import goods than we receive from exporting goods, and a negative balance of trade is also a negative for the entire U.S. economy.

It stands to reason if U.S. agriculture exports affect our economy in a positive way, we would jump at the chance to increase those exports further, but such is not the case. The United States, through lengthy negotiations with South Korea, Panama and Columbia, reached agreements very beneficial to increasing U.S. agricultural exports to these countries, but the trade agreements are at a complete standstill awaiting ratification in Congress.

Considering the current condition of the U.S. economy, there is no excuse for not proceeding immediately to allow for the ratification of these three agreements in Congress to help rectify our ailing U.S. trade balance.

—Denny Banister, Missouri Farm Bureau, Jefferson City[[In-content Ad]]