In the wake of ongoing discussions surrounding a bilateral or trilateral agreement with Mexico and Canada, as well as ongoing trade disputes with China, Nebraska Gov. Pete Ricketts and Nebraska Department of Agriculture Director Steve Wellman joined farmers, ranchers and ag organizations at Husker Harvest Days to raise awareness on the importance of trade for Nebraska agriculture. There they proclaimed Sept. 12, the second day of the show, Agricultural Trade Awareness Day in Nebraska.

Wellman noted that in 2016, farm receipts contributed $21.5 billion to the state's economy — and 30%, or $6.4 billion, was from exports.

"These exports create another $8.2 billion of economic activity due to increasing wealth in our exporting countries. The demand for meat, milk and poultry is expected to increase by 50% in the next 15 years," Wellman said. "According to the United States Department of Agriculture's Economic Research Service, a 10% increase in agricultural exports would create over 1,000 jobs in the state of Nebraska. Nebraska agriculture needs to be prepared to meet these opportunities."

During the week of Husker Harvest Days, Ricketts hosted the U.S.-Midwest-Japan Association Conference in Omaha, which drew dignitaries like USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney, U.S. Trade Representative chief agricultural negotiator Gregg Doud, Japanese Ambassador to the U.S. H.E. Shinsuke Sugiyama.

Japan is Nebraska’s largest direct international investor; Nebraska’s largest importer of beef, pork, and eggs; the No. 2 market for Nebraska corn and wheat; and No. 3 market for soybeans.

"Last year, our beef exports to Japan went up 26%, and our pork exports went up 46%. The Japanese recognize the high-quality products that we have, and they want more of them," Ricketts said during a press conference at Husker Harvest Days. "So what we have to do is continue to work on developing these trade relationships. That's why I've encouraged the Trump administration to get these trade deals wrapped up."

Despite friction surrounding a possible bilateral trade deal, Ricketts noted Japanese officials have opened up to a possible bilateral agreement that draws on components from the Trans-Pacific Partnership, and officials have previously said Japan would likely welcome the return of the U.S. to the TPP, despite the U.S.'s withdrawal from the agreement.

"Japan would obviously prefer to have the U.S. in TPP. They've been very clear about that. But the Trump administration has been clear that they're not going to participate in TPP. That was my message when I was in Japan — the president's not going to go back to TPP, so we should start talking about bilateral agreements," Ricketts said. "That's what I've encouraged with our administration as well, to ask them to engage with the Japanese to ask about getting a bilateral trade agreement done."

Working with our neighbors
In August, Ricketts wrapped up a trade mission to Mexico — one of the biggest trading partners for the U.S. and Nebraska. In 2016, ag exports from Nebraska to Mexico totaled an estimated $956 million. Mexico is Nebraska’s largest export market for corn, wheat, dairy, sugar and sweeteners, and animal fats. Shortly after returning from the trip, it was announced the U.S. and Mexico had reached a preliminary bilateral trade agreement which would replace the North American Free Trade Agreement.

"I think a lot of what will be in this new agreement doesn't impact us directly in agriculture, but I can tell you Mexico loves doing business with us. They prefer doing business with us; the logistics work for them," said Ricketts. "They've been sourcing products from other countries, but they've told us they'd rather do business with us. They've also told us they want to expand their beef and pork industries. They need us to do that."

While reports have shown NAFTA has added value to products raised in Nebraska (including $1.28 added to every bushel of soybeans, 21 cents per bushel of corn, and $38.22 per head of beef and $22.16 per head of pork) Ricketts and representatives from various ag organizations at Husker Harvest Days expressed optimism that a bilateral or trilateral trade agreement between the U.S., Mexico and Canada could provide some improvement over NAFTA.

"I spoke with Ambassador [Robert] Lighthizer the week before I went to Mexico and he was optimistic. I spoke with officials from Mexico, and they were optimistic about getting a deal done. The week after we came back, we had a deal," Ricketts added. "Now we just want to see Canada join in. That's where I think we can see some advantages. For example, if Canada joined the agreement and opened up their dairy market, that will be a huge deal. Because right now Mexico is our largest destination for dairy, and we are almost completely shut out of Canada's market. That's an opportunity to improve NAFTA in a way that would make a difference for us in the state."

Farmers and ranchers at HHD echoed Ricketts' statements, and said when it comes to resolving trade issues, the sooner, the better.

"We heard encouraging words I think this week. Undersecretary McKinney was in the state, and Ambassador Doud was in the state. Progress is being made on a lot of fronts," said Nebraska Farm Bureau President Steve Nelson.

"Farmers are usually pretty optimistic this time of year. We have good crops in most cases, and we're looking forward to harvest," said Nelson, adding that despite promising yields, many farmers are facing tight margins due to ongoing trade disputes. "I think all of us would say the sooner these trade issues are resolved, the better off we are."