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Protecting the Agricultural Economy and Global Commerce

Protecting the Agricultural Economy and Global Commerce. Shashank Nilakhe, PhD Texas Department of Agriculture. US Agriculture. Cash receipts: $259 Billion (Crops $134 billion and livestock $125 billion). Twenty percent of the production is exported; the rest consumed, processed.

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Protecting the Agricultural Economy and Global Commerce

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  1. Protecting the Agricultural Economy and Global Commerce Shashank Nilakhe, PhD Texas Department of Agriculture

  2. US Agriculture • Cash receipts: $259 Billion (Crops $134 billion and livestock $125 billion). • Twenty percent of the production is exported; the rest consumed, processed. • Exports: $71 billion; imports same. • Non agricultural export $867 billion; import $1,777 billion. • Texas: $18 billion; $3 billion export.

  3. Top Export countries Canada – 11.9 Mexico – 10.9 Japan – 8.4 EE (25) – 7.2 China – 6.7 Top Import Countries Canada – 13.4 Mexico – 9.4 Japan – EE (25) – 14.4 China – 2.2 US Agriculture, Export, Import ($ billion).

  4. Scope of My Talk • Many steps are involved in food supply from farm-to-fork. • Animal pathogen/disease emergencies are generally handled by the Texas Animal Health Commission and USDA. • TDA handles plant pests and other Ag emergencies during crop production.

  5. Trade Is Not Free • For every unit increase in trade, there is proportional increase in pest introduction. • Commercial shippers generally play by the rules, but visitors, tourists often do not. • A state is concerned with international, interstate and intrastate boundaries. • Pest incidence, terrorist or a natural act?

  6. Crop Pests • Estimate is that half of the pests in the USA came from elsewhere. • Mere presence of a pest (no damage) leads to quarantines, loss of markets, and a drop in share prices. • Ag is especially vulnerable to terrorist acts due to easy access to croplands and ranches.

  7. Biological Agents Against Crops • Easy access to crops. • Agents cheap to produce and easy to disseminate. • May be masked as a natural phenomenon. • May not kill humans, but cripple Ag economy.

  8. Ag Trade Requirements • For export, need to show absence of pests. • Phytosanitary certificates are issued to facilitate trade. • For imports, each country maintains a list of pests of concern by commodity and mitigation measures. • To avoid chaos, IPPC sets intnl standards.

  9. The approval process • A country officially requests another country a permit to export a commodity. • A country conducts a pest risk assessment, denies approval, or suggests mitigations measures. • Dispute resolution: Not to use pest issue as a trade barrier.

  10. Measures to Keep Pests Out • Offshore pre-clearance programs. • Stop pests at the borders, commercial shipments versus passenger traffic (CBP). • Pest survey to find if key exotic pests have entered the US, and surveys to show absence of pests for export. • Eradicate the pests if found, very expensive. • E. coli; peanut butter incidences.

  11. Measures to Implement • Government can not do it all alone. • Be vigilant. • Report suspicious activities. • Identify vulnerabilities; take corrective measures. • Be prepared; anticipate and plan for emergencies.

  12. Conclusions • Keep pests out of the country. • Find out out if they have entered the country. • Contain, control or eradicate, if feasible. • Find ways to keep trade open and flourishing, but prevent pest introductions --- a win-win situation.

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