About 35 percent of U.S. farm income comes from selling agricultural products overseas. And potential trade disruption could have a significant economic impact on Texas agriculture.
A new report released by the Center for North American Studies at Texas A&M University shows the total economic impact of Texas agricultural exports.
According to the study, Texas agricultural export trade to Canada and Mexico totaled more than $3.3 billion and supported 18,674 jobs in 2016.
The study showed the economic impact of U.S. agricultural exports to Canada and Mexico totaled $107.8 billion and 509,332 jobs in 2016, according to Center Director Dr. Luis Ribera, also a Texas A&M AgriLife Extension Service economist.
“This gives us a good picture of how important it is to keep these markets open,” Ribera told AgriLife Today. “When you look at it, over 509,000 jobs and almost $108 billion in economic impact is a lot of money and jobs, especially now that commodity prices are low and farmers are struggling to make a profit.”
The North American Free Trade Agreement (NAFTA) was designed to expand the flow of goods, services and investment throughout North America.
NAFTA eliminates import tariffs and the elimination or fullest possible reduction on non-tariff trade barriers, such as import quotas, licensing schemes and technical barriers to trade.
U.S. agricultural exports increased 192 percent from 1994 when NAFTA was negotiated between the U.S., Canada and Mexico, according to Ribera.
He said U.S. agricultural exports to Canada and Mexico increased 288 percent during the same period.
“These markets are very important to us,” Ribera said. “These agricultural exports have a lot of value throughout the economy and support a good many jobs.”
The study also showed that Texas exports to Mexico totaled $833.5 million, of which $270.8 million were animal products and $562.8 million were plant products at farm-gate level.
The top four Texas agricultural exports to Mexico were beef and veal, valued at $141.7 million; cotton, $125.4 million; sweeteners, $64.5 million; and corn, $62.4 million.
Texas agricultural exports to Canada totaled $875.1 million, of which $222.6 million were animal products and $652.6 million were plant products at farm-gate level.
To view the full report, click here.