Ag Organizations Send Letter to Governors on NAFTA

Last week, 22 agricultural associations submitted a letter to the governors of each state expressing concern about the potential of a withdrawal from the important trade agreement.  Among these organizations are ones very familiar to our region:  Agrimark, American Farm Bureau Federation, Coalition of New England Companies for Trade (CONECT), IDFA, National Council of Farmer Cooperatives, and others.

‘Notice of withdrawal from NAFTA would result in substantial harm to the U.S. economy generally and U.S. food and agriculture producers, in particular’, the letter said.  It went on to state:  ‘Notice of withdrawal from NAFTA would result in substantial harm to the U.S. economy generally and U.S. food and agriculture producers, in particular. While it has been asserted that negotiations could be completed and a new agreement approved subsequent to issuance of notice of withdrawal, but prior to actual withdrawal, that observation underestimates the business complexity, integrated supply chains and contracting periods involved. Such a notice of withdrawal would fuel additional uncertainty among our North American trading partners, creating a sense of urgency to explore non-U.S.-origin sources of supply. It also would trigger a substantial, immediate response in commodity markets, as market-specific focus would turn to a scheduled return to trade-prohibitive tariff rates. Contracts would be renegotiated or cancelled, sales would be delayed or lost altogether, able foreign competitors would rush to seize our export markets, and litigation would abound even before withdrawal took effect.’

According to the authors of the letter, some possible ramifications of withdrawal are ‘the negative impact on the United States would far outweigh any benefits from higher U.S. tariffs, including a net loss of 256,000 U.S. jobs, a net loss of at least 50,000 jobs in the U.S. food and agriculture industry, and a drop in GDP of $13 billion from the farm sector alone. NAFTA withdrawal would also disrupt critical industry supply chains, close markets, eliminate jobs, and increase prices for the basic needs of American consumers.’

The letter urges the Governors to let President Trump know ‘that you support a modernized NAFTA that maintains and enhances food and agricultural trade between the U.S., Mexico and Canada, and recognition that withdrawal from the accord would have adverse impacts.’

Whether the President has the unilateral right or authority to withdraw from an existing international trade agreement, without the approval of Congress, is an issue that may have to be settled in court.  This letter to our nation’s Governors is an attempt to prevent that potential legal quagmire from happening.

We will keep you informed of news on the NAFTA negotiations as they become public.

Ballot Measures in Maine, New York, New Jersey, Pennsylvania

CSG’s The Current State reported this week on recent ballot measures in Maine, New York, Pennsylvania, and New Jersey. Maine’s Question 2, a voter initiative, proposed the expansion of Medicaid, seeking to expand health care coverage to adults under the age of 65 who are at or below 138 percent of the federal poverty level. About 70 percent of voters in Maine voted “yes.” New York voters turned down a proposal to hold a constitutional convention in 2019. Read the full article here.

Puerto Rico’s Agriculture Sector devastated by Hurricane Maria

If you have been following the utter devastation from hurricanes this year in both Puerto Rico and the US Virgin Islands, you have heard little about agriculture on the islands and how it was impacted. Most of the media attention has gone to the human tragedy, and rightfully so. There are a lot of reports about the electric infrastructure being destroyed, communications being wiped out, a lack of food and water, roads closed, bridges out, and hospitals in chaos. But we hear little about the fate of Puerto Rico’s agriculture.

Here is a look at Puerto Rico’s agriculture industry data prior to Hurricane Maria from a 2014 Report by the USDA accumulated from the last “Census of Agriculture”.

• There were 13,159 farms in Puerto Rico as of the last Census of Agriculture, consisting of 584,988 acres or an average of 44.5 acres per farm. Fifty one hundred farms are less than 10 acres, while 385 farms are more than 260 acres. The second largest category of farm acres is 50 to 99 acres with 940 farms.
• Of the 584,000 acres of farmland, 67,000 are pasture land, 3,000 acres are woodlots and 433,000 acres are crop producing land, 63,000 of which are irrigated. Much of the best agriculture land of Puerto Rico is relatively dry, in the rain shadow of the central mountains.
• Puerto Rican Farmers hire about 30,000 workers each year with about half of those being full time and the other half either part time or seasonal. Losing your agriculture sector puts 30,000 Americans out of work as well as the 13,000 farmers themselves.
• The total agriculture output value of production of these 13,159 farms is $547 million, in 2012, with $271 million of that from crop sales. The largest crops in Puerto Rico are sugar, Plantains, followed by fruits and coffee.
• Of note, $50 million in plantains was lost to the hurricane. When ERC was in Fajardo Puerto Rico in 2013, we learned that it takes 18 months to grow plantains from planting to harvest, which will severely impact the future income potential of the plantain farmers.
• There are 257,000 cows on the Island, of which 100,000 are dairy cows, as well as 48,000 hogs and 10.9 million chickens.
• The ornamental sectors of agriculture output is worth $37.5 million, including Christmas poinsettias.

What was Puerto Rico’s agricultural industry is largely gone for the next year or longer, in many cases, due to the hurricane’s devastation. Dairy brings with it special problems. Feed crops were devastated, barns destroyed, milking parlors flooded. There is no electric for milking machines or refrigeration for the raw milk in storage.  Electricity or not, the cows still need to be milked twice a day.

Puerto Rico’s Secretary of Agriculture, Carlos Flores Ortega, estimates that 80% of the entire crop in the agriculture sector was wiped out, based on value. According to Secretary, this loss amounts to $780 million, with plantains, bananas and coffee the hardest hit. Poultry barns were blown away, killing the chickens in the process.

The U.S. Virgin Island’s agricultural sector is much smaller than Puerto Rico’s, but important to them all the same. At this time the Virgin Island figures are sketchy, but all one has to do is look at the before and after satellite pictures to see the lush green Virgin Islands go from green to brown to know that the island has lost crops.

The US House has already approved $12 billion in immediate aid to the Islands, and the House Natural Resources Committee will be holding hearings on the progress being made in both territories on both November 7 and 14. Our CSG/ERC eyes and ears in Washington, Fran Boyd, will attend both of these hearings.

What is CSG / ERC doing to help? We have been working with Annabel Guillen, the Federal Affairs Advisor to the Senate of Puerto Rico, and have had a conference call with a staffer to Puerto Rico’s non-voting Representative to Congress, Jennifer Gonzalez Colon, to ask what the ERC can do to help both long- and short-term. The most immediate need they had was not supplies, but office space in Washington. As a result, Wendell Hannaford and ERC have located office space where Ms. Guillen can station several volunteers to operate phone banks to field calls and offers for assistance. That office space, funding for which is provided by CSG-ERC, is in the Hall of States, and comes with unlimited WIFI.

We are awaiting requests for more assistance. Debbie Paige, ERC’s Military and Veterans Affairs Committee and Policy Analyst and Coordinator for the Council on Communities of Color, is working with members in the Virgin Islands to identify items needed, which we will ship to legislators to be used in their district offices, most of which were destroyed. As we learn what can be done to help the Puerto Rican and U.S. Virgin Islands agricultural community, we will make that known.