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Optimism for Ag as USMCA Signed

America’s agricultural industry is guardedly optimistic after President Trump signed the United States-Mexico-Canada Agreement (USMCA) this week.

Once fully in effect, the USMCA is expected to increase U.S. agricultural exports by $2 billion, resulting in an overall increase to the gross domestic product (GDP) of $65 billion. Struggling dairy farmers in particular will benefit, as under the terms of the agreement Canada will increase its quotas on U.S. dairy products by $242 million.

Canada has also agreed to treat U.S. wheat by the same requirements as it does its domestic wheat, and Mexico has also agreed to adopt grading standards for ag products that are non-discriminatory. Other features of the agreement include language that supports biotechnology and modern innovations in the ag industry, language that strengthens science-based SPS measures, and agreements that allow U.S. feed products to remain competitive - key for an industry that has quadrupled its exports over the past 25 years from $669 million in 1993 to $3.2 billion today.

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