U.S. corn exports generate $74.7 billion in annual economic output with benefits that extend well beyond the nation’s farmlands, according to a new analysis conducted by Informa Economics IEG.
The study asserts that the export of corn and corn products generated $604.8 million in annual economic output in Texas in 2014.
“Corn drives a large part of the U.S. farm economy, whether in the form of feed, ethanol, meat or dairy,” Bruce Wetzel, the Corn Producers Association of Texas (CPAT) president and farmer from Sherman, Texas, said. “The impact outlined in this study is significant. Our country’s corn exports benefit not only farmers and ranchers, but the nation’s economy as a whole.”
The study, which was commissioned by the National Corn Growers Association and U.S. Grains Council, both of which CPAT is a member, quantifies the economic contributions and benefits of the export of corn, the corn equivalent of meats, ethanol, the co-product dried distillers grains (DDGs), and corn gluten feed. Such benefits are shown at the national and state level, but also for some congressional districts as well.
According to the analysis, the export of corn and corn products in the district increased
Statewide, the study found corn exports increased the gross state product (GSP) by $199 million over what would have occurred without such exports, and linked 2,168 full-time equivalent jobs, either directly or indirectly, to corn exports.
Every $1 million in exports of corn and corn products generates an additional $0.6 million in business sales and 7 jobs across Texas.
The value of corn and corn product exports is notable at a value of $307.1 million in Texas.
“This study is more than just numbers, it outlines the many lives across the state and nation that would face negative implications without a strong corn export program,” Wetzel said.
This study underscores the need for the Trans-Pacific Partnership (TPP), an international trade agreement that would expand farmers’ market access to the Asia-Pacific region, Wetzel continued.
“Passage of TPP is key to expanding trade opportunities for America’s farmers and ranchers. The failure to move on this opportunity would negatively impact families on and off the farm across the nation,” Wetzel said. “Now is the time to act and secure the economic success for the nation – starting in America’s heartland.”