Desirable import/export balance can be
‘a very tough formula’

When it comes to trade, the world’s nations aren’t too different from kids on a playground clutching fistfuls of baseball cards: Nobody wants to go home feeling shortchanged, having swapped a pristine rookie all-star card for a dud. Agricultural trade is no different. 

Ag imports on the rise

The U.S. Department of Agriculture is predicting that ag imports will rise as much as 10 percent in 2006, to a record $63.5 billion. Last year, that figure was $59.3 billion—up $5.3 billion from 2004—while U.S. ag exports totaled $63 billion.

While agriculture is one of the few U.S. industries that enjoys a positive trade balance, that surplus shrunk from $7.4 billion in 2004 to $3.7 billion last year.

U.S. agricultural trade surplus drops to lowest level

In all, foreign agriculture imports into the United States have increased by more than $13 billion since 2003, and the U.S. agricultural trade surplus has dropped $10.6 billion to its lowest level on record since the early 1970s. Analysts expect agricultural trade could be negative in 2006 if current trends continue.

Top import and export markets

About 60 percent of all agricultural goods imported into the United States come from Canada, Mexico, the European Union and the People’s Republic of China. Those nations, aside from China, are also the United States’ top foreign export markets, along with Japan. While the majority of imports are noncompetitive products like bananas, coffee, tea, cocoa and spices, other leading goods brought into the country are fresh and processed vegetables; grains and feed; fresh and processed fruits; beef and veal; dairy products; and live animals.

Meanwhile, about 17 percent of all U.S. agricultural products are exported yearly, including 99 million tons of grains and feed, 2.4 million tons of poultry meats and 2 million tons of fresh vegetables. In terms of dollar value, America’s leading export is soybeans, followed by other feed grains.

About 20 percent of all Virginia agricultural products are exported each year.

Virginians encouraged to buy local products

Despite the variety of American goods sold for export, farmers are concerned about keeping up. In just the last two months of 2005, exports fell 9 percent, compared with a 3 percent increase in imports. Virginia agricultural marketers are trying to sell consumers on buying local.

“We are trying to define that local advantage and the local identity,” said Tom Sleight, director of the Virginia Department of Agriculture and Consumer Services’ Division of Marketing.

Safety is a concern with foreign agriculture imports

Beyond the economic concerns over foreign agriculture imports are nutritional and safety concerns. All food products that enter the country meet U.S. Department of Agriculture and U.S. Food and Drug Administration standards. However, there are no guarantees or American regulations as to how that food is grown in its country of origin.

That’s the big advantage to buying American, and more specifically buying locally.

“The grocer needs to know that it makes a difference to you where that product is produced,” Sleight said.

However, he conceded that farmers in foreign countries have many of the same issues and hopes as those stateside.

It's a two-way street

“Trade is a two-way street,” Sleight said. “We have made a lot of progress in exporting Virginia products to other countries, so we can’t have it both ways. If we want to export, we have to continue importing. It becomes a very tough formula to play out.”