Farming in America

We've Got the Goods

While 2010 may have been the Year of the Golden Tiger, it will never be remembered as the year of the golden dollar.

However, as we begin anew and look back on the past year, there is one shining statistic that breathes new life into the American economy.

In 2010, the U.S. increased trade exports by 21 percent, to $1.28 trillion—surpassing Germany and claiming its role as second-highest exporter in the world, next to China.

A major component of this triumph? The massive increase in agricultural exports, which made up about nine percent of all goods shipped abroad.

With China leading the pack as world's largest exporter, incomes are up and so is demand. That's where we come in. With the most efficient farmers yielding the most abundant food supply in the world, we were able to meet China's demand—exporting $17.5 billion worth of agricultural goods to them in 2010 alone.

Lucky for us, this kind of production can only be homemade, which means the jobs and economic activity created by agricultural trade stays right here at home.

"Our top soil is just freakishly good," said David Swenson, an economist at Iowa State University. "There are very few places in the rest of the world that can grow crops in such abundance. There are some parts in South America…but it's really the Midwest that is so productive," he said.

Testifying before Congress on the state of the ag economy, Secretary Vilsack echoed this recent success, "As we enter 2011, the U.S. farm economy is coming off unprecedented increases in the U.S. agricultural exports, farm cash receipts, farm income, and asset values the past few years."

So what exactly is the USDA predicting in agricultural exports for FY 2011?

A record high of $126.5 billion. That's up from $108.7 billion in FY 2010, even surpassing the previous record high of $114.9 billion in FY 2008.

But it's not just the income that the trade program supports. "Every $1 billion in agricultural exports supports 8,000 American jobs, which means agricultural exports supported nearly 1 million jobs in 2010," Vilsack said.

President Obama spoke to the importance of trade as well during his January 27th State of the Union address.

What was number three on his list of ways America can "win the future?"

"We need to export more of our goods," the president said. "Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years."

It's clear to policy makers, economists, and farmers alike—trade will be at the forefront of our economic recovery. Doubling our exports in the next five years is a lofty goal, but it can be done—with the help of agriculture.

According to Chinese tradition, 2011 is the Year of the Rabbit—a time for negotiation. Coincidence? Maybe, but let's make sure those 2011 USDA trade predictions are right on target, by holding the thin green line.

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