Agricultural Exports 

 and the West 



Joseph A. Kinney 



Staff Director, Committe on Agriculture 

 National Governors' Association 

 Washington, D.C. 



A< 



Lgricultural exports are an important part of the 

 economy of ttie western United States As Table 1 

 shows, western states are important exporters of 

 wheat, cotton, hides, meat, fruits, nuts, vegetables, 

 and other farm products Depending on a variety of 

 factors discussed later, agricultural exports from the 

 West could likely grow in future years. 



It is generally known that agricultural exports are an 

 important part of the US economy. This year, we will 

 export $42.5 billion in farm commodities and products 

 In 1981, we exported more dollars worth of corn than 

 any other product except jet aircraft. 



Today the Jetstream of America's farm commodities 

 can be found m all corners of the globe. It is said 

 that agriculture is America's export superstar. The 

 facts bear out this contention In 1981-82, we will 

 export 77 percent of the soybeans sold on the world 

 market, 74 percent of the corn. We also export 45 

 percent of the wheat and 34 percent of the cotton 

 traded in the world 



There is little question that the opportunity to pro- 

 duce for the export market is a significant factor in the 

 productivity of the U.S. farmer — productivity that has 

 meant, among other things, the lowest retail food 

 prices in the world for the American consumer. State 

 governments have recognized the significant role that 

 the export market plays in the economic viability of 

 the nation's 2.4 million farm and ranch families Many 

 western states have overseas trade offices and gover- 

 nors make marketing missions abroad, especially to 

 Pacific Rim nations where markets are growing rapidly 



This interest is consistent with the dedication of 

 state government to expand market opportunities 

 abroad. The National Governors' Association, for 

 example, has created an Agricultural Exports Task 

 Force and the National Association of State Depart- 

 ments of Agriculture is planning regionally-located 

 international trading expositions for our foreign 

 customers. 



In recent years Congress has passed critical legis- 

 lation designed to boost foreign food and fiber sales. 



In 1978, Congress passed the Agricultural Trade 

 Export Expansion Act, the first significant trade expan- 

 sion bill adopted by Congress in many years. Unfortu- 

 nately, Congress has yet to fully appropriate funding 

 for the authority that is in this bill. 



Most recently, Congress passed, as part of the 

 1981 omnibus farm legislation, a law establishing an 

 export revolving fund for agricultural exports. The pur- 

 pose of this fund is to provide a stable source of 

 financing for farm exports This legislation will help 

 flatten the "funding curve" for export financing, help- 

 ing the US establish a foothold in middle income 

 countries and help us maintain market shares against 

 exporting nations that subsidize exports 



As such, a revolving fund is essentially a market 

 development tool that is required to make significant 

 inroads in the markets of the middle income countries 

 like South Korea, Indonesia, and Chile. Many of the 

 countries that fit into this category were once recipi- 

 ents of the Public Law 480 "Food for Peace" 

 program. 



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