Lawmakers have returned to Congress for the first time in 2019 and officials will have several significant issues that will need to be addressed. Along with the 2018 Farm Bill, the agriculture industry will be paying close attention to the development of the United States-Mexico-Canada Agreement (USMCA), particularly dairy farmers.
The California dairy industry is especially interested in better trade conditions in the Mexican market. “It’s the number one market overall for the U.S. and for California, with its proximity even a larger share would go there just because we’re geographically well positioned to ship to that market,” said Director of Economic Analysis for Western United Dairymen Annie AcMoody.
While the agreement does not drastically alter the specific arrangement between the U.S. and Mexico, there are aspects related to Canada that appear to be a major win for U.S. dairy. “Some of the gains that specifically pertain to Canada in terms of them opening some of their markets without tariffs, and also to abolishing their Class 7 that has been a source of concern for the U.S. dairy industry for a few years,” AcMoody noted.