Last week was the Ag & Food Policy Summit and the theme was “Climate Risks, Rewards, & Uncertainties.” One of the speakers was Ag Secretary Tom Vilsack who spoke about the market opportunities for farmers internationally and domestically.
He explained that one of the obligations the United States Department of Agriculture has is to look for markets. “I think there is an opportunity for us in the next several years to expand markets, to have more markets, better markets, and new markets,” Vilsack said.
He broke them down between more markets, better markets, and new markets. Starting with more markets, Vilsack said that it all begins with trade. “When we talk about more markets it obviously starts with trade. As we all know, 20 to 30% of everything that’s grown in the United States is exported,” he went on to talk about USMCA, “when you talk about trade, I think you need to start with the USMCA and the implementation of that trade agreement.”
Vilsack said it’s important that we try to keep those markets open, as well as continuing negotiations with Japan, and keeping the market with China open so hopefully, it’ll expand over time. Not only is trade a big deal internationally, but also domestically to create opportunities on the local and regional levels.
Then Vilsack spoke on better markets. “It’s really about open, transparent, and competitive markets. When I think about that category, I think about the necessity of us having actually more processing capacity in this country,” he goes on to explain, “we found that there was a disruption in the market and so, the opportunity to create a more resilient supply chain also creates the opportunity for a more competitive market for farmers.”
With the summit being about “Climate Risks, Rewards, & Uncertainties,” Vilsack said that there are some financial benefits for farmers when it comes to climate. He feels that there’s a good pathway for producers in the carbon market and he sees opportunity there moving forward.
Speaking of climate, Vilsack also wants to warn farmers that consumers are starting to demand sustainability more and more. “The markets here domestically and around the world are going to demand that we be able to establish sustainable practices in terms of what we’re growing and raising and providing to our domestic consumers, as well as our international consumers,” said Vilsack.
He points out that this is a chance, especially for the livestock industry to figure out if we can reduce methane. Potentially, he sees this as a money-making occasion for producers, especially if the methane can be captured and reused. “I think there are unlimited opportunities for us to turn agricultural waste into a wide variety of products, so instead of a challenge, it becomes an ingredient and it can be sold in a variety of processing facilities…” Vilsack explained.
He wants people to remember that when it comes to the markets, for the next few years, the USDA is going to focus on more markets, better markets, and new markets.
