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Using a Nebraska-specific econometric model and several simulations, the analy- 

 sis concluded that, if yellow and white corn are perfect substitutes in Mexico, the 

 corn price would be approximately 9 cents per bushel higher in Nebraska with 

 NAFTA than without NAFTA. In 1 year of Nebraska corn production, this trans- 

 lates into an economic gain of well over $200 million to the State's economy from 

 corn alone. Even under less optimistic scenarios, the effects of NAFTA would still 

 be positive on the price of corn in Nebraska. 



A concern we have heard frequently by opponents of NAFTA is that it will result 

 in substantial job losses due to "cheap labor in Mexico. According to studies re- 

 viewed in our analyses, this fear is unfounded as NAFTA would induce slight in- 

 creases in total U.S. employment and total labor demand. 



Let's focus for a moment on the jobs back in Nebraska: The number of farmers 

 who will keep producing corn on their farm due to the increased exports of corn to 

 Mexico; the jobs of the people that will transport, store and sell the corn once it 

 leaves the farm and the jobs of the people in the rural communities who will sell 

 the farmers the tractors, the fertilizer and the seed so they can plant next year's 

 corn crop. 



There are over 32,000 corn growers back in Nebraska. Each one of these farmers 

 and their families harvest an average of 175 acres of corn, which yields 135 bushels 

 per acre, for a total production of over a billion bushels. That is a lot of corn. But 

 it isn't worth a plug nickel unless you find a customer to buy it. The good news is 

 that there are over 90 million people south of the Rio Grande who want to buy our 

 corn. 



As corn farmers, we can see specific benefits for our product under NAFTA. Cur- 

 rently, we face a quota, tariffs and import licensing system, which means wide 

 swings in Mexico's imports. Imports totaled only 51 million bushels of corn in 1991. 

 NAFTA would immediately establish a 100 million bushel duty-free level for U.S. 

 corn exports entering Mexico. Over the 15-year transition period for corn, this level 

 would increase 3 percent per year while tariffs on levels above this amount would 

 decrease. A fully implemented NAFTA could quadruple corn exports. 



Nebraska corn farmers also stand to benefit from U.S. beef exports to Mexico, 

 which are projected to increase to more than 200,000 metric tons after a 10-year 

 transition period. By the end of the transition period, U.S. cattle prices are projected 

 to increase by 50 cents to $1 per hundredweight. Livestock, especially beef, is the 

 largest consumer of corn. Every pound of red meat exported from the United States 

 represents a significant amount of corn as well. 



Up until now, NAFTA opponents have been the most vocal and visible in this free 

 trade debate. It's time to separate the facts from the fiction. In summary, our re- 

 search indicates the ratification of NAFTA would benefit the United States and the 

 corn producers of Nebraska. Most certainly, the tales of economic doom told by oppo- 

 nents of NAFTA will not happen as evidenced by the results of studies reviewed in 

 our analysis. 



If you should have any questions or require additional copies of the report, please 

 feel free to contact the Nebraska Corn Board or the UNL Agricultural Economics 

 Department. 



Roger Stuber 



Good afternoon. My name is Roger Stuber. I am a cattleman from Bowman, ND, 

 and president of the National Cattlemen's Association, representing more than 

 230,000 cattle producers nationwide. 



Mr. Chairman, the National Cattlemen's Association strongly supports the North 

 American Free Trade Agreement because it is a good business opportunity. During 

 the last decade we have worked aggressively to develop, access, and expand foreign 

 markets because we recognize that future economic growth in our industry relies 

 on growth in our export markets. Today, the U.S. beef industry exports more than 

 10 percent of the value of its production. It is in this spirit of new markets for meat 

 that harbors the strong support for NAFTA by the Meat Industry Trade Policy 

 Council (MITPC). MITPC members include the American Meat Institute, the Na- 

 tional Pork Producers Council, the American Sheep Industry Association, the Amer- 

 ican Farm Bureau Federation and the U.S. Meat Export Federation. 



As the U.S. population ages and slows in growth, continued market growth of U.S. 

 beef will increasingly depend on our ability to reach younger, faster growing mar- 

 kets elsewhere in the world. The dynamics of the Mexican market are exciting, 50 

 percent of the population being 20 years of age or younger and 80 percent under 

 the age of 40. The average Mexican family spends about 30 percent of its disposable 

 income on food, compared to less than 10 percent in the United States. 



