TPP stands for Trans-Pacific Partnership. The TPP creates rules and agreements for trade all over the world. The amount of tax on imports and exports and other regulations for countries are laid out in this agreement. A review of the effects that the TPP will have on agriculture in the United States can be read in full here.
2. What will the TPP do for United States Agriculture?
The implementation of the TPP will increase cash receipts for livestock. What this means is that the United States will trade more livestock products to other countries, increasing income from what we get from these goods now. This estimated raise in livestock exports pairs well with the expected decrease in the country’s trade of corn. This is because we will be able to keep that corn in the country and use it to feed the higher number of livestock that we are growing for trade. This use of corn is adding more value to the industry than it would if it was simply traded in bulk. Also, the overall farm income is expected to increase $4.4 billion for the country which is a very positive result for agriculture.
3. What will the TPP do for Illinois Agriculture?
As the deal increases cash receipts for the entire country, it would also do great things for Illinois agriculture. The chart shown explains that cash receipts for many Illinois products increase greatly with implementation of the TPP. This increase in income also comes with an estimated 960 jobs into the Illinois economy, according to the American Farm Bureau Federation. Corn is the biggest agriculture industry in Illinois and the exports from the country are expected to decline; however, Illinois is a perfect example of how that corn that is not being exported can be used to raise livestock. The TPP will also increase overall trade for other Illinois products such as pork, soybeans, and processed foods.
This trade deal is a big step for agriculture and the economy of the country. The American Farm Bureau Federation stresses the importance of the United States getting on board with the deal quickly. Other countries are ahead of the United States in making trade agreements that could help their economies.
There will soon be more news on the ratification of this in the United States.
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Illinois State University