Dense Fog Advisory

USMCA Offers Agriculture Benefits

With the announcement of the U.S., Mexico, Canada, Agreement (USMCA) there are several benefits to agriculture.

Canada's Milk Class Pricing System will change up and Canada will ensure that prices for some dairy products in Canada, like skim milk solids or infant formula, will be set no lower than U.S. prices.

Poultry also will see more access, on top of $600 million worth of products exported to Canada, there will be new tariff rate quotas for chicken and eggs. Eggs specifically will see 30 percent more import licenses granted to new entrants.

In addition, there are no changes for food or ag products with zero tariffs under NAFTA.

Iowa Senator Chuck Grassley says wheat, dairy, poultry, and eggs will benefit from the deal and for those segments of american agriculture it is an ideal agreement.

But in particularly he is pleasantly surprised dairy commitments came through, "You know, in the last 18 months I've had a lot of delegations of parliamentarians from Canada come to my office and we would talk about possible changes to NAFTA and one thing that they continually said, 'We will never give up our supply management system for dairy.' And here it looks to me like they've given it up and opening up their markets to our products coming in."

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