Food availability depends on agricultural imports and exports

Agri Live Today

Texas A&M agricultural economists look at agricultural trade benefits to consumers, economy

Economic activity related to the importation and exportation of agricultural products benefits consumers and helps stimulate both the Texas and U.S. economy, according to experts from the Department of Agricultural Economics in the Texas A&M College of Agriculture and Life Sciences.

Agricultural trade benefits the economy and allows consumers greater flexibility in acquiring the items they desire. (Texas A&M AgriLife photo by Kay Ledbetter)
“The U.S. imports a huge volume of agricultural products, such as fruits and vegetables, from other countries, especially Mexico, to meet domestic consumer needs,” said Luis Ribera, Ph.D., Texas A&M AgriLife Extension Service economist, Bryan-College Station.

He said although there is sometimes a negative connotation associated with agricultural importation, the fact is that our ability to import fruits and vegetables from other countries, as well as our ability to export them, is beneficial to our consumers and economy.

“It means consumers can get the products they want when they want them, and the two-way trade serves to bolster both the Texas and U.S. economy,” he explained.

Ribera said some examples of U.S. agricultural imports in terms of commodity percentage of domestic consumption in 2019 include coffee, 99.8%; limes, 99.9%; bananas, 99.9%; avocados, 90%; tomatoes, 61.5%; and orange juice, 52.8%.

“The U.S. is the largest agricultural exporter in the world, exporting $150 billion worth of agricultural products in 2020,” Ribera said. “These exports account for about one-third of agricultural income. In the same year, the U.S. imported $146.8 billion in agricultural products. Both these exports and imports generated positive economic impacts for the state and nation.”

He noted that for nearly two decades, the U.S. Department of Commerce’s Bureau of Economic Analysis, BEA, has ranked Texas as the No. 1 exporter among U.S. states.

“Texas shipped $279.3 billion worth of goods around the globe in 2020,” Ribera said. “The state outperformed all other states, with the value of its exports accounting for 19.5% of overall U.S. exported products for 2020.”

Ribera said while agricultural products have become a smaller portion of the state’s exports as the Texas economy has evolved and become more diverse, the U.S. Department of Agriculture Foreign Agriculture Service estimated its agricultural exports in 2020 at more than $6.5 billion.

Additionally, the Business Roundtable notes international trade, including exports and imports, also supports 3 million Texas jobs. These trade-related jobs are at both large and small companies, on farms, in factories and at the headquarters of Texas’ globally engaged firms.

Finding the right balance

More than one-third of farm income in the U.S. is derived from the exploration of agricultural products to other countries. (Texas A&M AgriLife photo)
During 2020, the U.S. imported almost $25 billion in horticultural products from Mexico, while the combined total of all U.S. agricultural exports to Mexico totaled just $18.3 billion, said Bart Fischer, Ph.D., co-director of Texas A&M’s Agriculture and Food Policy Center, AFPC.

Prior to becoming AFPC co-director, Fischer served as chief economist and deputy staff director of the House Committee on Agriculture. In that role, he also served as a trade advisor to the committee chairman, working on oversight of the renegotiation of the North American Free Trade Agreement, NAFTA, and implementation of the United States-Mexico-Canada Agreement, USMCA.

“There is still sensitivity on the part of many U.S. producers about our striking the right balance in agricultural trade,” he said. “Many growers argue that the growth in fruit and vegetable imports from Mexico is the result of unfair competition, including lower labor and environmental standards, as well as significant investment from the Mexican government. This is further complicated by the fact that many U.S. companies have a significant presence in Mexico, so some of that ‘trade imbalance’ is actually from companies with U.S. ties providing Mexican-grown produce for importation to the U.S.”

Fischer said, like most things, it’s a matter of “finding the right balance” between imports and exports, but it is a fact that both provide consumer and economic benefits.

Imports across the U.S.-Mexico border
In 2017, Texas, New Mexico, Arizona and Califonia received an estimated $783.9 million of direct economic output as a result of produce imports from Mexico. (Texas A&M AgriLife photo)
A report by AgriLife Extension’s Center for North American Studies stated that when considering the entire U.S.-Mexico border region of Texas, New Mexico, Arizona and California, there was an estimated $783.9 million of direct economic output attributed to produce imports from Mexico during 2017. This is expected to grow to $1.06 billion by 2025, with the leading sectors benefiting from import-related activity being truck transportation and warehousing, followed by sorting, grading and packing, customs brokering and miscellaneous border services.

“This direct output will also require an additional $1.19 billion in economic activity from supporting industries,” Ribera said.

He also noted that total employment in this four-state region related to handling fresh produce imports is estimated at 18,238 jobs by 2025.

“The economic impact of U.S. produce imports from Mexico on southwestern land ports of entry is substantial and is expected to be around $2.25 billion by 2025,” Ribera said. “In Texas alone, the total economic activity to support the additional imports will be $1.22 billion, along with supporting some 11,281 jobs.”

A case study in avocados
A study on avocados done by the Agribusiness, Food and Consumer Economics Research Center, AFCERC, at the College of Agriculture and Life Sciences showed how their importation benefits both the Texas and U.S. economy.

“Over the past 20 years, there has been a 240% surge in per capita consumption of fresh avocados,” said Oral Capps, Ph.D., center co-director and holder of the Southwest Dairy Marketing Endowed Chair in the university’s Department of Agricultural Economics.

Grouping of avocados
Even though 2020 was a record year for U.S. avocado production, the whole of domestic production was only able to meet one-tenth of the nation’s consumer demand. (Texas A&M AgriLife photo)
In the U.S., there are three commercial avocado regions: Southern California, Florida and Hawaii. Among these three states, California produces the majority of the avocados, followed by Florida and Hawaii. However, domestic production cannot meet the U.S. demand for avocados, satisfying only 10% of the national demand.

According to Statista, the global avocado market was valued at approximately $12.8 billion in 2019, with that figure expected to exceed $17.9 billion by 2025. It also showed nationwide retail sales of avocados in the U.S. amounted to $2.6 billion in 2020.

“Domestic production alone can only meet about one-tenth of the U.S. demand for avocados, so to meet this demand, we import avocados from other countries,” said Gary Williams, Ph.D., professor of agricultural economics and co-director of AFCERC. “We import the vast majority from Mexico, but the Dominican Republic, Peru, Indonesia, Colombia and Brazil are also among the avocado growing and exporting countries.”

Williams said a 2019 AFCERC economic contribution analysis for Mexican Hass Avocado Import Association, MHAIA, which he prepared with assistance from Daniel Hanselka, AgriLife Extension associate in the Department of Agricultural Economics, showed the benefits of Haas avocado imports as they move through the food supply chain. The report showed importation of $2.82 billion in Haas avocados, which account for some 85-90% of all avocados imported by the U.S., provided these benefits for the U.S. economy:

— $6.5 billion in U.S. economic output.
— $4 billion in added value to the U.S. gross domestic product, GDP.
— $2.2 billion in U.S. labor income.
— $1.1 billion in taxes.
— 33,051 jobs for U.S. workers.

“Most of this economic benefit was accrued by wholesale, retail and service industries at the state and national level,” Williams said.

Williams also noted the Mexican Hass Avocado Import Association is based in Fort Worth, and many Texas agribusinesses are involved in importing and selling avocados in Texas and around the country.

“A large percentage of the rapidly growing volume of avocado imports into the U.S. comes through Texas ports and has a positive impact on the Texas economy,” he said.

He also noted that, in Mexico, avocado production is responsible for the creation of more than 78,000 direct and permanent jobs as well as more than 310,000 indirect and seasonal jobs.

“These provide a productive living for people in an area of Mexico that was once one of the largest sources of migrant workers in the U.S.,” he said. “There are about 29,000 avocado growers and 65 packers in Mexico, with the vast majority cultivating less than 5 acres of land. That means it’s primarily small family farms and not large agricultural corporations that benefit from the Mexican avocado industry.”

Williams said this fact adds a human dimension to the discussion on not only U.S-Mexico agricultural trade, but also agricultural trade with other countries, especially those underdeveloped countries where subsistence farming is the norm.

Senate infrastructure bill sets stage for massive effort to make broadband more available and affordable

Washington Post
By Tony Romm and Cat Zakrzewski

Senate Democrats and Republicans are inching closer to adopting more than $14 billion to help Americans who are struggling to pay for high-speed Internet, part of a package of digital initiatives that together amount to the largest one-time investment in broadband in U.S. history.

The debate has played out in the context of a roughly $1 trillion infrastructure proposal that the Senate began debating earlier this week. The bipartisan measure sets aside $65 billion total to expand Internet access, a pot of money meant to build out connectivity to unserved parts of the country while helping low-income families afford their bills.

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The affordability program, in particular, marks an expansion of the U.S. government’s existing efforts to help Americans who cannot afford reliable, speedy Web connectivity. Only after years of neglect — and a pandemic that forced Americans nationwide to conduct their lives primarily through the Web — did Congress in December pass a plan to help families pay for the costs of speedy service.

The infrastructure proposal extends that assistance, and potentially expands the number of Americans who are eligible for it, ahead of what would have been its expiration in a few months once its coffers ran dry. If adopted, the new measure would enable eligible Americans to take advantage of a discount of up to $30 per month, less than the $50 that participants receive today.

Democrats and Republicans have hailed the new spending as a critical component of their broader effort to invest in the country’s roads, bridges, pipes, ports and other aging infrastructure. Both sides have expressed unease with some of the package’s component parts — with Democrats seeking more aid and Republicans fearing the prospect of government overreach — yet they largely found consensus for now on the new broadband assistance.

“It is time for us to bridge America’s digital divide and build a 21st-century broadband infrastructure that will meet our country’s needs not only today, but for years to come to be future-proof,” Sen. Susan Collins (R-Maine), one of the chief negotiators of the deal, said in a floor speech touting the work this week.

The Senate debate comes on the heels of huge investments in Internet access totaling more than $25 billion that lawmakers have authorized over the course of the coronavirus pandemic. Over multiple relief packages, lawmakers have tried to help more Americans get online, boost telehealth programs, and assist teachers and students inside and outside the classroom — injections of funding that could have lasting effects on the country’s Internet connectivity.

Passage of the infrastructure bill would add another $65 billion to efforts to close the so-called digital divide, the persistent gap between those who have access to high-speed Internet and those who do not. The White House estimates that about 30 million Americans live in areas where there is no broadband infrastructure to provide minimally acceptable speeds.

But the money still may fall short of President Biden’s ambitious goal of ensuring every American has access to high-speed Internet, because some Democrats initially said about $100 billion might be needed to address the country’s digital infrastructure. Even as they praise the contours of the new legislation, the shortfall left some public interest groups warning this week that their work is far from finished.

“On the whole, this bill is going to help connect a whole lot of people,” said Jenna Leventoff, senior policy counsel at Public Knowledge, a consumer advocacy group. “But there’s still a lot of work to do to make sure that we can fully close the digital divide.”

On Capitol Hill, Sen. Brian Schatz (D-Hawaii) described the broadband provisions as his “least favorite section” of the bill. Asked whether it did enough to address the costs of Internet service, he said this week, “I’m going to vote yes, but we’re going to have a few more bites at the apple as it relates to broadband policy.”

The plan’s centerpiece is a nearly $42.5 billion program that would provide money to states to ensure that broadband is deployed to rural areas and other regions of the country with inadequate service. Companies that receive funding under the legislation to build out networks would be required to offer low-cost plans to families who otherwise cannot afford Internet service.

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Companies including AT&T, Comcast and Verizon already advertise low-cost options for families who qualify, but not every carrier does, so the legislation opens the door potentially for new Internet providers to offer service at discounted rates, according to lawmakers. The prices of those plans would be determined by each state.

The bill also aims to dedicate $14 billion to extending the emergency broadband subsidies that lawmakers authorized as part of the most recent coronavirus aid package adopted in December. That program since the spring has provided subsidies of up to $50 per month toward the Internet bills for more than 4 million eligible households, with the aid paid directly to providers. Under the new infrastructure legislation, however, the amount is set to be reduced to $30 per month.

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Lawmakers reduced the amount of the rebate as they sought to keep the total infrastructure bill under the approximately $1 trillion price tag that its 10 Democratic and Republican authors first announced in June. The decrease in benefit amount so far has received a mixed reception among experts: The new funding prevents the program from expiring, but it may leave some participating families no choice but to accept cheaper, lesser Internet service in the future if they can’t afford to pay the difference in their bills.

“I think it’s the worst thing in politics when you take something away from people rather than giving them something,” said Jonathan Schwantes, a senior policy counsel for Consumers Reports. “The reduction will sting some families.”

But Schwantes added it was positive that lawmakers were extending the program and addressing some of its shortcomings after it initially began as a temporary, emergency initiative. “It’s a positive step forward that I don’t know 18 months ago that I would have imagined,” he said.

The extension of broadband subsidies was one of the more contentious points in negotiations over the bill, delaying lawmakers from finalizing their plan for days. As part of the debate, Democrats wanted to ensure that telecom carriers such as AT&T, Comcast and Verizon could not raise their monthly rates at a time when the U.S. government subsidized some Americans’ service. Party lawmakers put forward proposals during the talks to try to limit such increases, according to two aides familiar with the matter. They spoke on the condition of anonymity to describe private deliberations.

But Republicans rejected some of the proposals, which they perceived as price caps, viewing them as a back door to allowing the federal government to regulate Internet rates much in the same way that utility commissions oversee how much power and water providers charge for services. Telecom giants including the NCTA-the Internet & Television Association, which represents the industry’s biggest firms, had urged the GOP to fight the provisions, the two aides said.

NCTA spokesman Brian Dietz declined to comment on the association’s lobbying efforts, but said in a statement that the association was “encouraged” that the package provides financial assistance “to help low-income Americans subscribe to this critical service.”

Sen. Ron Wyden (D-Ore.), one of the bill’s supporters, said the latest version is a “compromise.”

“The package certainly didn’t do everything I would have wanted, but in combination with President Biden’s executive order, it’s a good start,” he said in a statement. The president recently signed an executive order that took aim at industries in which certain companies dominate the market, including broadband providers.

The legislation directs the Federal Communications Commission to craft rules to ensure Internet companies aren’t abusing the program, such as by pushing consumers to sign up for more costly tiers of service. That push follows a Washington Post report that Verizon was telling customers that “old” plans weren’t eligible for the subsidy and pressuring them to sign up for more expensive plans. The company reversed course and began accepting the subsidy for old plans after The Post’s report.

Lawmakers also included a requirement that the FCC embark on an effort to require Internet providers to offer easy-to-understand labels about their rates and how they change after introductory offers to address long-running concerns that Americans’ cable and Internet rates too often differ or appear to increase from what’s advertised. These labels, which have been compared to the nutrition labels on food packaging, have long been a priority for Democrats and were recently promoted in an executive order signed by Biden earlier this summer.

“It’s encouraging to see some provisions around pricing transparency to simply help consumers understand what they’re paying for,” Joshua Stager, the deputy director of broadband and competition policy at New America’s Open Technology Institute, said in an interview.

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The legislation further allocates more than $2.7 billion toward “digital equity” initiatives, which seek to ensure that people not only have access to the Internet, but have the skills and training to use it to complete daily tasks. And the Senate bill tasks the FCC with taking steps to prevent practices known as “digital redlining,” ensuring that service providers don’t discriminate in their decisions about where they deploy networks on the basis of race or an area’s income level.

Consumer advocates, meanwhile, have warned that the package does not go far enough to address long-running competition concerns. An earlier bipartisan broadband bill would have overturned state laws that make it illegal to build municipal networks, which advocates say result in greater competition and lower prices for consumers. But that language was not included in the latest version of the infrastructure plan.

The omission was one of the “most disappointing” in the legislation, said Andrew Jay Schwartzman, senior counselor at the Benton Institute, which advocates for expanded Internet access. He also lamented that the minimum Internet speed requirements for the networks were slower than what Democrats initially proposed. They wanted download and upload speeds of 100 megabits per second, but the bill only requires upload speeds of 20 mbps, which experts have warned are not speedy enough for households increasingly reliant on video conferencing.

Despite these shortcomings, advocates said they were largely pleased with the deal.

“There will have to be more in the future,” said Gigi Sohn, senior fellow and public advocate at the Benton Institute. “It’s not the end point, but it’s a really strong beginning.”

Urban agriculture in Honolulu

UH News

Hawaiʻi’s heavy reliance on imported goods and the future impact of climate change on food production are just two of the reasons why a UH Mānoa global environmental science senior focused her project on urban agriculture (vertical farming, community gardens, hydroponics and greenhouses) in Honolulu. In this public impact research project, Seraphina King conducted interviews with stakeholders, and reviewed existing literature and case studies to determine how Honolulu government and non-governmental organizations are engaging in urban agriculture.

“The research is ongoing. So far, I would say that urban agriculture could have positive outcomes for Honolulu,” King said. “However, it is hard to implement due to competing land uses and current policies that limit zoning. My research seems to point to what some scholars have said about urban agriculture—it cannot be a substitute for food imports but could bolster community resilience.”

King, who was mentored by Department of Urban and Regional Planning Associate Professor Priyam Das, said she hoped attendees of her presentation gained a “better understanding of urban agriculture and what it can offer in terms of expanding food production in cities.” She added, “It might even spark interest in thinking of ways they want to become engaged in urban agriculture projects in their communities.”

Agri-Business Workshops for Farmers

Molokai Dispatch
UHCTAHR Molokai Extension News Release

Whether you are an experienced farmer, an up and coming market gardener, or find yourself anywhere in between, then this is the workshop series for you! There will be four free workshops offered throughout August and September that will focus on the business side of agriculture and farming. The workshops will be offered both in person and have a Zoom component for those who are unable to meet in person.

The first workshop will be held Thursday, Aug. 12 from 3 to 5 p.m. at the UH Molokai Applied Research and Demonstration Farm Classroom (next to Kumu Farms). This workshop will focus on Farm Record Keeping and will be a blend of instruction and a Q & A session with a panel made up of Molokai farmers. There are 10 in-person seats available and an unlimited number of spaces available to join by Zoom. The in-person seats will be filled in the order the online registrations are received. To register, please visit sustainablemolokai.org. Should you have any questions, please email Jamie Ronzello at jamie@sustainablemolokai.org.

Other workshops in the series include Marketing on Aug. 26, Post-Harvest Handling (field demonstration) on Sept. 2, and Resources/Funding on Sept. 9. Please make plans to join us for one or all of the series.

The Agri-Business Summer Series is offered to you through a partnership between Sustainable Molokai, GoFarm Hawaii, and UH CTAHR Molokai Cooperative Extension. Funding is provided by USDA’s Office of Partnerships and Public Engagement. The series is open to everyone without regard to race, age, sex, color or disability. Educational activities are accessible for individuals with disabilities. For more information or to request an auxiliary aid or service (e.g., sign language interpreter, designated parking, or material in alternative format), contact Jennifer at the Molokai Extension Office at (808) 567-6934 or via email at jhawk@hawaii.edu seven days before the activity/event.

Nitrogen study could help farmers and protect water, ecosystems

UH News

Nitrogen is the unsung hero of food production—an essential nutrient for plant growth and health. Nitrogen is found in the chlorophyll needed for photosynthesis, the amino acids that form proteins, the adenosine triphosphate compounds that release energy, and the DNA that codes all plant life.

Yet, because nitrogen leaks from agricultural systems, nitrogen deficiency is a common nutritional problem for plants. There’s also the question of the excessive use of nitrogen fertilizers and their effect on sustainable croplands, as well as the environment.

As part of an international study, researchers sought to improve nitrogen management and better understand the global nitrogen cycle. The team, including Tai Maaz from the University of Hawaiʻi at Mānoa College of Tropical Agriculture and Human Resources (CTAHR), compared 13 nitrogen budget datasets covering 115 countries and regions over the past half-century.

They found that while most datasets collected show similar patterns, some estimates vary quite widely. The authors propose a common benchmark for nitrogen budgets, based on median values and the range of estimates.

Maaz headshot
Tai Maaz
“I am honored to be part of this international team of researchers led by Dr. Xin Zhang,” said Maaz, a junior researcher in CTAHR’s Department of Tropical Plant and Soil Sciences. “I am hopeful this study will help us find ways for more sustainable management. Proper and robust nitrogen budgeting is important for Hawaiʻi to protect our water and sensitive ecosystems from nitrogen pollution.”

The benchmark will facilitate apple-to-apple comparisons between model structures, rather than apple-to-orange differences in data inputs, so scientists have a better tool for ecological modeling. In addition, policymakers commonly use nitrogen budgets to evaluate the risk of environmental impacts and set effective policies.

“Nitrogen budgets tell us how much nitrogen is present and moving through our systems, but they’re notoriously difficult to construct on regional, national and global scales,” said Maaz. “This study provides an opportunity to create a benchmark so that people who are interested in comparing models can use a common dataset.”

Record wildfire burns at least 40,000 acres on Hawaii’s Big Island, sets up mudslide danger

Washington Post
By Paulina Firozi

A brush fire that scorched at least 40,000 acres on Hawaii’s Big Island is the largest ever on the island, officials said, and the area burned may pose a risk for mudslides if there are heavy downpours in coming months.

Mandatory evacuations forced residents in three communities out of their homes over the weekend, but the orders were lifted late Sunday as conditions stabilized.

Cyrus Johnasen, a spokesperson for the Hawaii County mayor’s office, said Tuesday that the confirmed area burned remained around 40,000 acres. Johnasen told The Washington Post that the fire was 75 percent contained, and that officials expect the blaze to be 85 to 90 percent contained by the end of Tuesday, local time. Officials say that the fire is no longer a threat to residences or homes but that there is concern about an effect on forest reserves and species habitats.

He also warned of “after effects” even when the flames are curbed. For the next two or three months, heavy rains could cause mudslides, he said.

“All the areas that have burned, the soil no longer has roots to hold it in place,” he said. “ … So that 40,000 acres of burned soil could translate to mudslides anywhere along the west side of the island, resulting in potential road closure or hazardous conditions.”

He said residents should be cautious on roads if those heavy rains arrive.

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The fire ignited amid recent drought conditions in parts of the state of Hawaii. Nearly 60 percent of the state is experiencing at least moderate drought, according to the U.S. Drought Monitor. Much of the Big Island is abnormally dry or experiencing moderate drought.

A National Weather Service forecast from early July warned of “increasing drought conditions” in parts of the state during the summer.

“It’s important to note that by no means are we out of this drought,” Johnasen said. “The threat of this particular fire is over, but folks should keep in mind who live in those dry areas that more forest fires and brush fires could spark over the course of the summer. We want folks to remain cautious and remain alert and have an evacuation plan in the event something becomes more of a threat to homes.”

Exceptional heat and drought also have created tinderbox conditions elsewhere, fueling wildfires across the western United States this year. The National Interagency Fire Center lists 97 active large fires burning in the country, mostly in Western states.

Clay Trauernicht, part of the extension faculty in ecosystems and fire at University of Hawaii at Manoa, said fires in Hawaii are fueled by widespread tropical grasses.

“That’s what drives our fire risk here,” Trauernicht told The Post.

“We’ve been in pretty deep drought conditions, especially in that part of the Big Island,” he added. “The other thing that hammers us is we’ve had an especially wet wintertime.”

Wet winters with excess rainfall lead to more tropical grass growing, accumulating more fuels that later dry out and can increase the chance of fires.

“What we’re seeing is that perfect one-two punch,” Trauernicht said.

He said there’s also been a long-term trend of grasslands expanding, in part driven by a reduction in agriculture and ranching operations over the past two or three decades. With less land under production, grasses have further filled in.

Trauernicht said there are occasional lightning strike-sparked fires, brush fires and fires from active lava flows. In 2018, an eruption from the Kilauea volcano on the Big Island devastated surrounding areas. Fissures opened up, spewing lava into residential roads and destroying structures in its path.

But a large majority of fires are started by people, Trauernicht said. “Human ignitions coupled with an increasing amount of nonnative, fire-prone grasses and shrubs and a warming, drying climate have greatly increased the wildfire problem,” notes the Hawaii Wildfire Management Organization website.

Roth pointed fingers at the drought as firefighters fought the record blaze in Hawaii County.

“With the drought conditions that we’ve had, it is of concern,” the mayor said, according to the Associated Press. “You see something like this where you’re putting thousands of homes in danger, it’s very concerning.”