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Demise of NAFTA could spell doom for U.S. agriculture

The possible demise of the North American Free Trade Agreement has ag economists forecasting doom for U.S. agriculture.

 

Chad Hart with Iowa State University says NAFTA partners Canada and Mexico were worth roughly $40 billion dollars to the U.S. ag sector in 2017.

“So NAFTA is critical to us when (looking) at both U.S. agriculture and Iowa, and i would argue the biofuels industries.

As one of the participants in a market outlook round-table at the Iowa Renewable Fuels Summit in Altoona Tuesday, Hart says exports have led the charge in growing that market.

“And I think that goes back to the idea, especially for corn-based ethanol, that it has been able to become cost-competitive against petroleum.  Not only are we seeing our usage grow here in the U.S., but that’s driving the demand we see overseas.”

NAFTA talks concluded in Montreal Monday, with the last scheduled round of negotiations set for Mexico next month.