Fresh food imports and exports bolster US economy
More than one-third of farm income in the US comes from exporting agricultural products to other countries, and imports are also highly critical in meeting domestic consumer demand. Come read our blog to learn more!
Importing and exporting fresh food, especially agricultural products, is key to maintaining the American food supply chain and bolstering the US economy.
According to a study conducted by the Texas A&M College of Agriculture and Life Sciences, economic activities related to importing and exporting agricultural items help stimulate the US economy and benefit consumers.
Enormous Demand for Agricultural Items
To meet domestic needs, the US imports a huge volume of farm products, such as fruits and vegetables, especially from neighboring Mexico. Importing those items help food consumers get what they want, meaning the two-way trade bolsters the US economy, although there is sometimes a negative connotation associated with this activity.
Some examples of US agricultural imports in terms of commodity percentage of domestic consumption in 2019 include coffee (99.8%), limes (99.9%), bananas (99.9%), avocados (90%), tomatoes (61.5%), and orange juice (52.8%).
The US is also the largest agricultural exporter in the world, with $150 billion worth of farm products exported in 2020, which account for about one-third of agricultural income. In the same year, the US imported $146.8 billion of those commodities. Both these exports and imports generated positive economic impacts for the nation.
More than one-third of farm income in the US is also from selling agricultural items to other countries. In 2020, the US imported almost $25 billion in horticultural products from Mexico, while the combined total of all US agricultural exports to Mexico totaled just $18.3 billion.
Meanwhile, many US producers are still concerned about striking the right balance in agricultural trade. Many growers argue that the growth in fruit and vegetable imports from Mexico is the result of unfair competition, including lower labor and environmental standards and significant investment from the Mexican government. Overall, it is about finding the right balance between imports and exports, which will help provide both consumer and economic benefits.
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