(
Jamie)
Welcome back to
Farm Factor and the
Kansas Soybean
Update.
(
Greg Akagi) This is The Kansas Soybean Update.
It’s brought to you by The Kansas Soybean
Commission. The
Soybean Checkoff,
Progress Powered by Kansas
Farmers. Jay
O’Neil,
Senior Ag
Economist with the
International Grains Program Institute at
Kansas State is joining us and Jay, the
International Trade Commission recently came out with a report and it looked at the likely effects of increased trade with
Pacific nations. So as we look at that, let’s look at some of the positives on what we could see with a potential trade deal in the works. (Jay O’Neil) The positives, and I think you have to define them or examine them rather closely, the positives are there and that
TPP Trade Agreement is certainly going to be a good thing for ag. Although, I think that most of the impact is going to be felt in what we call value added products and that means meat.
Meat and livestock. But that’s still a good thing for grain because the more meat, pork or beef or chicken, that we can potentially export, that takes more feed here domestically and that’s a good thing. (Greg) As this continues to work, are we seeing anything as far as what might not be a positive coming out of this report that would affect agriculture? (Jay) I don’t see any negatives.
Opening up trade, eliminating trade barriers, codifying or at least unifying phytosanitary requirements and eliminating tariffs, those are all good things even if they don’t have an immediate impact like on soybean trade or corn trade, I think we’re going to find that most of the countries in
Southeast Asia already have a pretty much open door for our soybeans and many of them have an open door for our corn and products as well. And again, the bigger issue is if we can start to ship more pork meat, I think pork will be a big beneficiary of it, as well as beef, it’s good for everybody. (Greg) That opens up potentially more markets too. (Jay) It opens up a few more markets.
And I think the other thing that a lot of people have glossed over or at least not recognized is the beauty, so to speak, of the TPP Agreements that we are entering into, there’s this type of single or small multi-company agreements that those agreements once they are agreed upon among, whether it’s one or whether it’s five or six or seven countries, it’s easier to hammer out those agreements with a small number of countries. So with these smaller agreements, one of the terms of these agreements is once they are agreed upon among these members, any other members, whether that is
China or
Taiwan or other people around the world who will say, I want it now, or at a later date, come back and join that agreement, they have to agree upon the terms and conditions that have already been established without modification. And that makes it a lot easier once you try to expand these agreements even beyond their initial impact and their initial partner countries. (
Greg) Jay O’Neil, Senior Ag Economist with the International Grains Program Institute at Kansas State is joining us on The Kansas Soybean Update. It’s brought to you by The Kansas Soybean Commission. The Soybean Checkoff, Progress Powered by Kansas Farmers. Learn more at kansassoybeans.org. For Kansas Soybeans, I’m Greg Akagi.
(
Jamie) Hope you enjoyed this week’s Kansas Soybean Update. After the break we’ll join
Kyle and
Randy Gordon,
President of the
National Feed and
Grain Association.
- published: 21 Jun 2016
- views: 5