NASHVILLE, TENN. (RFD NEWS) — As the formal review of the U.S.-Mexico-Canada Agreement approaches this summer, farm groups are voicing continued support for the trade pact. A new economic analysis underscores the benefits the agreement provides to agriculture and rural communities across the country.
Agricultural industry leaders gathered this week to show support for the U.S.-Mexico-Canada Agreement (USMCA). The meeting, hosted by the Ag Coalition for USMCA, included heads of several large organizations across all sectors of the ag industry, including the National Corn Growers Association (NCGA), National Milk Producers Federation (NMPF), and the International Fresh Produce Association (IFPA).
The analysis examined the overall impact of the USMCA on ag exports and the economic benefits across key agricultural commodities. Particular attention was given to the importance of trade relations with Canada and Mexico, especially regarding U.S. corn.
Mexico Trade Impact on Fruit and Vegetable Export Growth
According to Alexis Taylor, IFPA Chief Global Policy Officer and former USDA trade undersecretary, the fruit and vegetable trade between the U.S. and Mexico is valuable and directly supports the Trump Administration’s goal of improving overall health.
“You can’t do that without fruits and veggies, right? We should be half of your diet,” Taylor says. “I think anything that really could jeopardize that trilateral nature, ultimately will. We’re concerned [it will] have impacts on our producers, that entire supply chain, the distribution networks, to retail, to ultimately those end-consumers.”
Taylor says one of the key points the Ag Coalition for USMCA’s report highlights is the trilateral nature of the USMCA and outlines the economic benefits it brings to U.S. farmers and ranchers.
“The long‑term success of USMCA is a top priority for our members,” said Taylor. “Since the agreement took effect, fresh U.S. fruit export values have increased by 34%, while U.S. vegetable exports have grown by 14%. These gains highlight the tangible value USMCA delivers across the fresh produce supply chain and reinforce the importance of a strong, integrated North American trade environment.”
Lawmakers are also weighing in on the importance of USMCA. In a call with reporters this week, Senator Chuck Grassley (R-IA) said there is no question whether the North American trade pact should remain in place.
“That ought to be reauthorized for the full extent, and it should be done yesterday, not tomorrow,” Sen. Grassley said. “I’ve been pretty clear on that. Now, there are some things [...] that may need to be fine-tuned. But for the most part, the dramatic improvement in exports for American farmers to Mexico, and to a lesser extent Canada, is so great that it should be unquestioned that it should be extended.”
USMCA was brokered by President Donald Trump during his first term, replacing NAFTA. It is set for official review in July.
Read the Ag Coalition for USMCA’s economic impact report: PDF Version
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Mexico and Canada Represent Key Markets for U.S. Corn and Ethanol
The analysis examined the overall impact of the USMCA on each sector of ag exports and the economic benefits across key agricultural commodities. Particular attention was paid to trade relations with Canada and Mexico, especially regarding U.S. corn.
“Our analysis shows that USMCA is a powerful driver for employment, investment, and long-term competitiveness in the U.S. agricultural sector,” said Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. “While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America’s success and resilience, particularly during tough economic times like we are in now.”
Data shows just how critical our North American trade partners are as guaranteed export markets for U.S. corn and ethanol, with Mexico accounting for $5.5 billion in U.S. corn purchases and Canada accounting for $1.5 billion in U.S. ethanol exports, for a combined market value of $7.67 billion across both agricultural products and trade partners.
| FAS Product Category | Canada | Mexico | Total |
| Corn | $449,828,000 | $5,512,057,000 | $5,961,885,000 |
| Ethanol (non-bev.) | $1,521,022,000 | $197,166,000 | $1,718,188,000 |
Gretchen Kuck with the National Corn Growers Association joined us on Thursday’s Market Day Report to share highlights from the report, which uses a 2024 base-year model to evaluate agricultural exports under USMCA, her key takeaways from the analysis, and her hopes for the upcoming review process.
While the report outlines several positives of the current framework, Kuck also noted opportunities for improvement as the agreement heads into its formal review, including the need to protect these critical markets, which also offer growth opportunities for both U.S. corn and ethanol.
NCGA Eyes Year-Round E15 Sales Amid Congressional Uncertainty
Another pressing issue for the NCGA is year-round sales of E15. Lawmakers did not include the provision in the latest federal spending package. A special council is expected to present its findings to Congress soon, but economists say the path forward remains uncertain.
“The corn ethanol folks were very hopeful that they’d be able to get legislation allowing E15 use year-round as part of a budget bill that’s working its way through Congress, but that didn’t happen, at least not this time around,” said Pat Westhoff, agricultural economist. “There are some promises for future votes, but it’s not clear to me what the process is going to be to actually get a bill back on the floor with a chance of passage here in the future. There’s just lots of uncertainty today with getting much of anything passed in Congress, so we’ll see whether or not the folks who are more supportive of E15 year-round are able to succeed.”
Westhoff encourages farmers and stakeholders to communicate with their representatives.
“Right, there’s definitely a challenge to the farm economy right now, and on the crop side of the ledger, having additional sources of demand would definitely be supportive,” he said. “For those who want to see that happen, definitely reach out to your members of Congress and encourage them and make it clear to them how important this is to you. The administration is trying to step in with additional support for farmers through the Farmer Bridge Assistance Payment Program, which is at least some help. But of course, I think a lot of producers would be far happier to receive their support in the form of stronger demand for their products, rather than government checks.”
The House E15 Council is expected to present its first proposal by this Sunday, with votes anticipated before the end of the month.
