US Grains Council chairman says farmers will benefit from Trans-Pacific Partnership

The Trans-Pacific Partnership (TPP) will be moved forward for a Congressional vote later this year by President Barack Obama. 

TPP would reduce tariffs, address non-tariff barriers and allow other countries to join the trade agreement. A study was released during a farmer fly-in to Capitol Hill in February which concluded that United States farmers have the potential to net over $4.4 billion because of TPP.

“While the timeline for TPP ratification within the United States still remains unclear, the Farm Bureau study is another sign of the benefits it would offer for farmers and agribusinesses including our members,” U.S. Grains Council Chairman Alan Tiemann said. “As the most competitive producer of coarse grains, the best strategy that the U.S. industry can have is to remove market barriers and increase access to both new and existing customers. When that happens, through TPP or other trade agreements, the economics of U.S. production are so compelling that U.S. farmers win sales. TPP will clear the road for sales and for future market development that the Council specializes in.”

U.S. farmers, especially growers of corn, soybean and wheat, will see an increase in their overall profit because of an increase to farm prices. They will be able to expand their export net to Pacific Rim countries that were not as easily accessible before the TPP legislation.

“This could be a critical pivot for U.S. farmers to really begin focusing on the Pacific Rim,” Tiemann said. “The Council will continue to monitor the agreement’s process and stands ready to develop markets, enable trade and improve lives with other TPP member countries when the pact is ratified in the United States.”