Recently, major commodity groups across the country joined together to send a letter to Congress to highlight the importance of trade and export markets for farmers across the country. Among these groups is the Illinois Corn Growers Association. Illinois Corn Director of Exports and Logistics Collin Watters explains over the last two administrations, trade policy took a “protectionist” turn, moving away from free trade agreements.
“Exports are just hugely important to U.S. farmers. It’s probably the one sector in the US economy that’s benefited from trade agreements in the past,” says Watters. “What we’re, we’re asking for is the, for the current administration for Congress to get more ambitious and to seek out new opportunities with foreign countries because right now the farm economy’s in a tough spot. We have low prices and a high-cost environment which is not good.”
Watters adds that when it comes to trade, the last two administrations have shifted focus on bilateral direct trade negotiations, diminishing the ambition to seek out free trade. However, when it comes to trade, Illinois farmers have a leg up on others across the country due to the infrastructure available.
“In Illinois, we were blessed with multiple markets and multiple export channels. So the ability to export out of the state, that helps raise basis and so that has historically been a huge benefit to Illinois farmers,” says Watters. “Realistically, anything that we can do to help increase export demand and help access foreign markets, it will pay off for farmers, and it tends to have a long-lasting impact. So, once a new foreign market is developed, or once we gain access, typically those foreign markets tend to develop a preference for our products”.
Watters adds that in the letter, commodity groups also warn of repercussions against American agricultural goods from tariff increases.
