COLUMNISTS

Congress can help American farmers by passing bill to expand trade opportunities

Congress can act to help improve trading opportunities for a dairy industry that employs nearly one million Americans

Tom Vilsack
Guest columnist

American farmers rely on the export of our superior agriculture products to friends and allies across the world. And perhaps none of our trading partners are as important to farm and food exports as Canada and Mexico.

This is why rural America is calling on Congress to pass the United States-Mexico-Canada Agreement (USMCA).

By increasing access to these vital markets, the agreement will have a positive impact on farms, businesses and communities right here in Iowa. 

Rural America is facing a crisis, one that has not spared Iowa farmers. In fact, Iowa lost 2,533 farms in just five years, according to the latest Census of Agriculture data from the USDA. Dairy farmers have been hit particularly hard. Last year alone, the USDA found that the U.S. lost an average of seven farms a day. 

Expanding trade opportunities will be critical to the economic recovery of farm country.

I recently joined local Iowa farming and agriculture groups at roundtable discussions in Des Moines and Cedar Rapids where it quickly became clear that securing market access and restoring certainty to our trade relationships by passing the USMCA is a priority for America’s farmers.

In particular, the dairy industry would see important benefits from the revamped free trade framework of the USMCA.

America’s dairy industry employs nearly 1 million Americans and pumps $200 billion into our economy. Last year, the U.S. dairy industry sold $5.6 billion worth of dairy products and ingredients around the world. The international demand for high-quality American dairy products is rising and our farmers and processers stand ready to meet this growing market.

But America’s position as the dairy industry leader could be in jeopardy without the USMCA. 

Milk prices have suffered over the last four years, while unfinished trade deals and ongoing disputes have created a risky environment and led to growing uncertainty for the dairy industry and the rest of agriculture.

However, the USMCA points to brighter days for our farmers. Under the agreement, U.S. dairy exports to Mexico and Canada will see an economic boost of $277 million, primarily resulting from new market access into Canada.

In addition, the USMCA will make serious reforms to trade-distorting parts of Canada’s milk pricing system, which has harmed American exports not only to Canada, but also to our other markets around the world. Tackling these trade-distorting policies as the USMCA will create new opportunities for American farms and businesses and solidify those they enjoy today.

It’s clear that the USMCA will provide a much-needed boost to our North American trading relationships. And if Congress can kick America’s trade agenda into high gear with passage of the USMCA, it will provide the momentum necessary to secure trade agreements with our other partners around the world.

Congress must stand with our nation’s farmers and swiftly move to pass the USMCA.

Tom Vilsack, the former governor of Iowa, is President and CEO of the U.S. Dairy Export Council