Study shows Indiana agriculture benefits from Trans-Pacific Partnership
Indiana Farm Bureau
February 23, 2016
For more information: Kyle Cline, 317-692-7845, email@example.com
The American Farm Bureau Federation today released a state-by-state analysis of the economic impact of the Trans-Pacific Partnership trade and investment agreement. Nationally, the American Farm Bureau Federation estimates annual net farm income will increase by $4.4 billion, driven by an increase of direct U.S. agricultural exports of $5.3 billion per year upon full implementation of the TPP agreement.
“This report verifies what farmers in Indiana know to be true,” said Indiana Farm Bureau President Randy Kron. “Access to new and emerging markets like those in the TPP is critical to growing our state’s farm economy and creating new opportunities for Indiana farm families.”
In Indiana, the TPP agreement is expected to increase cash receipts and net exports by $196 million and $98.3 million per year respectively. It is estimated that the increased marketing opportunities for Hoosier farmers will add more than 740 jobs to the Indiana economy.
Eliminating tariffs and other trade barriers on Indiana’s agricultural exports to TPP partner countries will increase trade for a range of Indiana agricultural products, including pork, soybeans, beef and processed food products. Export sales are an important component of Indiana’s farm economy, which had total cash receipts of $13 billion in 2014.
“If we don’t move forward with TPP, we will fall behind,” said INFB national policy advisor Kyle Cline. “While TPP would only go into full effect if the U.S. ratifies the agreement, other countries will move forward with their bi-lateral or multi-lateral trade agreements regardless of whether or not we decide to ratify the agreement.”
The TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 participating members. However, outside of TPP, other member countries are already negotiating and implementing bilateral agreements without waiting for the United States to complete action. Failure to enact TPP will not see the U.S. trade situation stay the same, but will lead to declining net exports and market share in important and emerging markets.