Trade is important to Wisconsin corn growers. We export about 10 percent of what we produce – that’s 50 million bushels. Exports of Wisconsin corn contribute more than $300 million to the state’s economy. Trade agreements like the United States-Mexico-Canada Agreement (USMCA) are important and needed for agriculture.
Market Access for U.S. Corn Farmers
For generations, America’s farmers and ranchers have built strong trading relationships to help maintain a competitive edge in the global economy and bolster job creation across the United States. However, without a proactive trade approach, competitors will gain market share that otherwise would be captured by U.S. corn growers.
Why Trade Matters for Corn Farmers
Exports are responsible for 33 percent of U.S. corn farmers’ income. More than 20 percent of the U.S. corn crop is exported annually when accounting for corn and value-added products, like ethanol and distillers dried grains with solubles (DDGS). Twenty-six percent of U.S. corn exports go to Canada and Mexico alone.
The benefits do not stop at the farm gate: they have a ripple effect throughout the U.S. economy. Agriculture, food and related industries contributed $1.530 trillion to U.S. gross domestic product (GDP) in 2023[1], and in 2022 jobs related to agriculture accounted for 10.4 percent of total U.S. employment, roughly 22 million jobs[2]. To view how corn exports benefit your Congressional district, click here.
Global Demand Makes Farmers Successful
Building global demand is critical to making trade work and keeping U.S. farmers competitive. As the world’s largest producer and exporter of corn, U.S. corn farmers are well-positioned to meet global demand. With 96 percent of consumers living outside the United States, the future of American agriculture largely depends on our ability to sell to foreign markets. Additionally, markets with trade liberalization measures in place are outperforming the rest of the world. Exports to our 20 recent free trade partners account for more than 40 percent of total corn exports.
U.S. corn growers celebrated the ratification of the U.S.-Mexico-Canada Agreement (USMCA) and the China Phase One deal. Both measures included market access provisions that provided export opportunities for corn growers. However, the United States has not secured a trade agreement with a new partner in over a decade. This means that our competitors and potential customers are forging ahead with agreements that leave the United States out and place American agriculture at a disadvantage. Therefore, NCGA strongly encourages the Administration to explore market access opportunities in Southeast Asia, Africa and Europe in order to increase demand.
[1] https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=58270
[2] https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy/
