Net farm income will increase by $4.4 billion annually with passage and implementation of the Trans-Pacific Partnership trade agreement according to the American Farm Bureau Federation’s newly released economic analysis on TPP benefits to American agriculture.
According to the report, more than 40,100 jobs will be added to the U.S. economy as a result of TPP.
Other key findings include:
- Livestock receipts with implementation are $5.8 billion higher with approval than without. For the crops sector — including fruits and vegetables — receipts are $2.7 billion higher. Net farm income is also $4.4 billion higher.
- U.S. beef and pork exports are expected to be $1 billion and $940 million higher, respectively.
- U.S. beef production would increase by 324 million pounds annually as a result of TPP. Increased exports would put upward pressure on prices resulting in a $1.14 billion increase in cash receipts.
- U.S. pork production would increase by 794 million pounds annually because of TPP. Exports are expected to increase by 1.1 billion pounds, mostly on increased exports to Japan and Vietnam. Cash receipts would increase by $1.1 billion.
- Farm prices for corn, soybeans, wheat, rice, cotton, fed steers, feeder steers, barrows and gilts, wholesale poultry and milk are all projected to be marginally higher with the agreement in place than without.
- Net trade increases for rice, cotton, beef, pork, poultry, butter, cheese and non-fat dry milk.
- Net trade of corn declines slightly, but overall use increases and corn revenue rises as higher feed use is needed to provide for the added beef and pork exports rather than being exported as raw commodities.