Source: TEXAS A&M UNIVERSITY submitted to NRP
CENTER FOR NORTH AMERICA STUDIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0213877
Grant No.
2008-38824-19155
Cumulative Award Amt.
(N/A)
Proposal No.
2008-03223
Multistate No.
(N/A)
Project Start Date
Jul 15, 2008
Project End Date
Jul 14, 2010
Grant Year
2008
Program Code
[JV]- Center for North American Studies, TX
Recipient Organization
TEXAS A&M UNIVERSITY
750 AGRONOMY RD STE 2701
COLLEGE STATION,TX 77843-0001
Performing Department
AGRICULTURAL ECONOMICS
Non Technical Summary
The objective of the North American Free Trade Agreement (NAFTA), implemented on January 1, 1994, is the elimination and phased reduction of tariff and non-tariff barriers to trade between the United States, Mexico, and Canada. NAFTA also sets the stage for further trade liberalization among Western Hemisphere nations such as a the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). The growth in North American trade and associated economic integration will create the need and opportunity for cooperation to address pressing agricultural trade and food issues. Examples include economic and trade relationships for food and agricultural products, international trade policies, assessing impacts of food and agricultural bio-terrorism, natural resource and environmental problems, food safety and nutrition, food marketing and distribution, plant and animal production technology, availability of migrant and other labor, and potentially conflicting domestic farm policies. The Center for North American Studies project was created to respond to the needs and opportunities created by the increased agricultural trade and economic integration resulting from NAFTA and other trade agreements and policy changes. CNAS promotes strong agricultural ties among the United States, Mexico, and Canada in an effort to expand trade relationships with the United States' most important trading partners. CNAS attempts to enhance the competitiveness of U.S. agriculture, and fosters greater cooperation among the three countries in resolving critical agricultural issues of common interest.
Animal Health Component
60%
Research Effort Categories
Basic
(N/A)
Applied
60%
Developmental
40%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6030210301015%
6035299301035%
6065010301020%
6066299301020%
6116120301010%
Goals / Objectives
This proposal describes the implementation of the Center for North American Studies (CNAS) and the development of Center programs in research and policy analysis, training and education, and cooperative study involving the United States, Mexico, and Canada. The specific objectives of the programs of the CNAS are to: a) develop institutional linkages with internationally recognized agricultural programs in Mexico, Canada and other countries important to North American agricultural trade; b) develop cooperative research programs to investigate priority issues related to growing North American trade in agricultural and food products; c) evaluate the trade impacts of alternative farm, market, trade, and macroeconomic policies in each of the three countries; and d) develop training programs designed to prepare agricultural and agribusiness firms for international opportunities and competition. Priority programs of CNAS include assessing impacts of the North American Free Trade Agreement (NAFTA), the Central America Free Trade Agreement (CAFTA), and other policies on regional competition, facilitating the international marketing of food and agricultural products via workshops and training, analysis of the impacts of trade policies and farm programs on agriculture in the region, monitoring progress of the North American Free Trade Agreement, and reviewing World Trade Organization provisions and policies and their impacts on North American agriculture. Analytical capability will be enhanced to assist in the assessment of changes in economic conditions, trade policies, and farm programs in the United States and other countries for producers of wool and mohair, sugar, peanuts, cotton, dairy products, fruits and vegetables, aquiculture, beef cattle and swine, feed grains, wheat and rice. Increased funding will allow the Center to address emerging educational and research needs related to international marketing and cross-border operations, trade and the environment, the acceptance and impacts of genetically modified organisms and new technology, market and price analysis, international market development, and the impacts of antidumping and countervailing duty actions. The competitiveness of U.S. agriculture will be enhanced by the development of new programs to stimulate market development for both feed and food grains, the analysis of policy and trade impacts, the application of new technologies, and value-added industry. CNAS will alos analyze the economic impacts of trade policies, farm programs, invasive species, and immigrant labor policies on agriculture and the broader economy of the region.
Project Methods
The strategy for this next project period will be to expand the number of projects to maximize the Center's impact. In keeping with the multi-national emphasis of the Center, one of the primary goals will be to develop working relationships with collaborators in Canada, Mexico and other countries important to North American agricultural trade. The projects to be undertaken as a part of this annual plan of work are described under the three program initiatives of Research and Policy Analysis, Training and Education, and Cooperative Study. For Research and Policy Analysis initiatives, CNAS personnel will conduct North American Competition Studies in an effort to evaluate the impacts of NAFTA on the competitiveness of key U.S., Mexican and Canadian food and agriculture industries. Center researchers will also conduct analyses of trade, agricultural, macroeconomic, and other policies. This will allow us to develop the capability to respond to requests from the U.S. Congress and others regarding the impacts of macroeconomic, farm, and trade policy changes on the agricultural economies of Canada, Mexico, the United States, and other countries important to North American agriculture. The input/output software IMPLAN will be used to estimate the direct and indirect economic impacts of policies and other events on Texas and U.S. agriculture. For Training and Education initiatives, Center personnel will conduct training and education programs for producers, agribusiness firms, and policy makers. Developing training programs to provide cutting-edge market intelligence and management to farms and agribusinesses will assist these constituents to participate in expanding trade opportunities and adjusting to import competition. CNAS will also work to revise graduate and undergraduate business and agribusiness programs to provide graduates with an increased ability to operate in the emerging global economies of North America. For Cooperative Study initiatives, CNAS researchers will develop databases of statistical information and research literature to support analysis, training, and cooperative studies on North American food and agricultural issues. CNAS will also facilitate cooperative research and programming among of faculty and students from U.S., Mexican, and Canadian universities and other institutions to broaden educational experiences and enhance cooperation.

Progress 07/15/08 to 07/14/10

Outputs
OUTPUTS: CNAS continues to monitor the trends in agricultural trade between the U.S., Mexico, and Canada and examine issues which impact this trade. Conducted extensive research into and analysis of the economic impacts of U.S. agricultural exports to Cuba. As part of this effort, CNAS was asked by Congress in March 2010 to review the potential impacts of HR 4645, the Travel Restriction Reform and Export Enhancement Act of 2010. Publications including estimated impacts of increased exports to Cuba for the United States and 13 individual states as a result of the loosening of travel and finance restrictions were presented Congressional staff and were cited by numerous media outlets. During November 2009, CNAS, in cooperation with the Southern Region Research Committee on the Impacts of Trade and Domestic Policies on the Competitiveness and Performance of Southern Agriculture (S-1043) and the University of Florida, conducted a conference entitled Domestic and Trade Economics of Alternative Energy Sources and Globalization: The Road Ahead in Orlando, FL. 54 individuals from 15 states and representing 4 countries attended the conference. Participants were from academia, industry leadership, domestic government, foreign government, and the media. Conference papers and presentations can be found at http://cnas.tamu.edu. Exporting to Cuba workshop conducted in Houston with 60 people attending and focusing on market potential, process and regulation. A study on trends and perspectives of cotton- seed price was updated and presented at an international conference. While cotton prices follow the slow growth trend of world fiber prices, cottonseed prices are highly correlated with soybean meal prices and would follow the rapid increase of soybean and cereal prices associated with the world exploding demand for proteins. The implications of this trend for cotton policy and technology development might be considerable. Continued international efforts by co-sponsoring the 17th annual Farming for Profit conference held in Moose Jaw, Saskatchewan, Canada in June at which CNAS researchers presented information on bottlenecks to international trade and the cap-and-trade legislation. CNAS faculty and staff presented 6 selected papers, 1 symposium and 1 poster at the professional meetings of the American Applied Economics Association in July 2009 and the Southern Agricultural Economics Association in February 2010. The papers focused on topics such as exchange rates, the impacts of imported trout, sorghum demand in Mexico, cultural barriers to trade, and the impacts of foreign born labor. The poster examined the Mexican meat demand while the symposium addressed impacts of the global financial crisis on international agricultural trade. Sixty-two presentations were made with an estimated attendance of 1,645. The CNAS project website, http://cnas.tamu.edu, is another outlet for research results and was visited approximately 19,500 times from July 2009 to June 2010, resulting in more than 86,000 hits. PARTICIPANTS: Parr Rosson, PI, Director and Economist, Center for North American Studies, Department of Agricultural Economics, Texas Agrilife Extension Service, College Station, TX. Flynn Adcock, Assistant Director and International Program Coordinator, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Dwi Susanto, Post-Doctoral Research Associate, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Eric Manthei, Extension Associate, Center for North American Studies, Texas Agrilife Extension Service, College Sation, TX. Rafael Costa, Graduate Research Assistant, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Shad Thevenaz, Graduate Research Assistant, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Joe Pena, Extension Economist, Texas Agrilife Extension Service, Uvalde, TX. Luis Ribera, Extension Economist, Texas Agrilife Extension Service, Weslaco, TX. Marco Palma, Extension Economist, Texas Agrilife Extension Service, College Sation, TX. P. Lynn Kennedy, Professor and Sub-Contractor PI, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Bryan Hilbun, Research Associate, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Yung-Jae Lee, Post-Doctoral Research Associate, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Jaime Malaga, Assistant Professor and Sub-Contractor PI, Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX. Pablo Martinez-Mejia, Post-Doctoral Research Associate, Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX. Terry Crawford, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. William Gorman, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. Rhonda Skaggs, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. Jay Lillywhite, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. TARGET AUDIENCES: Target Audiences include the following categories: 1. State, Federal, and International Policy Makers such as U.S. Congressional and Senatorial offices, U.S. Department of Agriculture staff, the Texas Department of Agriculture, the North American Agricultural Market Integration Consortium, and the CAFTA-DR Agrifood-Market Integration Consortium. 2. State, National, and International Agribusinesses and Associations such as American Farm Bureau Federation, American Sugar Cane League, Border Trade Alliance, U.S. Rice Producers, Texas Beef Council, Texas Grain Sorghum Producers, Independent Cattlemen's Association of Texas, Texas Wheat Association, Texas Agricultural Industries Association, Texas Vegetable Association, Texas Citrus Mutual, Texas Produce Association, Texas Farm Bureau, Louisiana Farm Bureau, Port of Corpus Christi, Port of Beaumont, Port of Freeport, Port of Galveston, Port of New Orleans and Agricultural Producers Association of Saskatchewan. 3. Media including print, radio, television, and Internet-based. 4. Members of the academic community including international agricultural trade economists around the U.S., undergraduate students, and graduate students. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Full implementation of NAFTA occurred January 1, 2008. Annual agricultural trade between the U.S. and NAFTA partners reached its peak in 2008 but remained strong in 2009. U.S. agricultural trade with Mexico is now 285% higher since NAFTA, while US trade with Canada has grown 204%. Canada and Mexico account for 29% of U.S. agricultural exports while providing 36% of imports. U.S. agricultural exports to Cuba were valued at $528 million in 2009, with $20 million attributed to Texas products and $85 million going through Texas ports. U.S. exports to Cuba created $1.6 billion in total economic activity and 8,584 jobs nationwide. Slightly more than one-half of all economic activity attributed to U.S. agricultural exports to Cuba occurs beyond the farm gate. If U.S. travel and financial restrictions are removed as proposed under HR 4645, up to $365 million/year in additional U.S. exports could result, requiring $1.1 billion in business activity and 6,000 new jobs. While U.S. agriculture is estimated to receive major economic gains from increased exports, non-agricultural sectors such as business and financial services, real estate, wholesale and retail trade, and health care are also important beneficiaries of increased exports to Cuba, receiving up to 45 percent of the gains in some cases. As a consequence of the correlation of cottonseed prices with soybean meal prices, the share of cotton-seed revenues could represent up to 40% of total U.S. cotton farmers revenues in the next 10 years.

Publications

  • Kennedy, P.L. and A. Schmitz "Production Response to Increased Imports: The Case of U.S. Sugar," Journal of Agricultural and Applied Economics, 41,3(December 2009): 777-789.
  • Lee, Y.J. and P.L. Kennedy, "Real Exchange Rates and U.S./Korean Bilateral Trade," China-USA Business Review, 8,9(September 2009): 1-17.
  • Lee, Y.J., P.L. Kennedy, and B.M. Hilbun, "A Demand Analysis of the Korean Wine Market Using an Unrestricted Source Differentiated LA/AIDS Model," Journal of Wine Economics, 4,2(Winter 2009): 185-200.
  • Lee, N., Falk, C.L., & W. Gorman. "Onion Production, Packing, & Storage Feasibility on the Navajo Indian Irrigation Project," NMSU-AES Research Report 769, November 2009.
  • Lillywhite, J.M., and T. Crawford. "New Mexico Hay Prices." Alfalfa Market News. New Mexico Hay Association, (October 2009).
  • Malaga, J, and G.W. Williams. "Mexican Agricultural and Food Export Competitiveness." Forthcoming at Revista Mexicana de Agronegocios, 2010.
  • Malaga, J., S. Pan, and R. Kulkarni. "Precision Agriculture Adoption Policy: Evaluation of Potential Impacts on World Cotton Markets." Life Sciences International Journal. ISSN 1992-1705, pp 180-189, 2009.
  • Malaga, J., S. Pan, and R. Kulkarni. "Politique d'Adoption de l'Agriculture de Precision: Evaluation des Impacts Potentiels sur le Marche Mondial du Coton." Cahiers Agriculture (France) 19 (1): 48-53, 2009.
  • Bawazir, A.S., Z. Samani, M. Bleiweiss, R. Skaggs, and T. Schmugge. "Using ASTER Satellite Data to Calculate Riparian Evapotranspiration in the Middle Rio Grande, New Mexico." International Journal of Remote Sensing 30(21-22): 5593-5603 (November 2009).
  • Falk, C. L. and P. Pao. 2010. "Oasis at New Mexico State University," Farm Out, in press, University Press of Kentucky.
  • Kennedy, P.L. and B. Hilbun, "An Economic Analysis of Planters Rice Mill LLC and the Midland Branch Rail Upgrade of the Louisiana & Delta Railroad," Agricultural Economics Staff Paper 2009-25, LSU AgCenter, Baton Rouge, LA, November 2009.
  • Kang, H.S., and P.L. Kennedy, "Bilateral Trade and Economic Growth: The Empirical Evidence Between the U.S. and South Korea," Journal of Rural Development, 32,2(2009): 59-88.
  • Martinez-Mejia, P. and J. Malaga. "The Effect of Ethanol Production on Coarse Grains: New Price Relationships." Journal of Agribusiness. 27 (1-2): 33-47, 2010.
  • Pan, S., Malaga, J., and X. He. "Market Liberalization and Crop Planting Decisions: A Case of China." China Agricultural Economic Review (3), 2010.
  • Rosson, Parr. 2009 Economic Impacts of U.S. and Texas Exports to Cuba. CNAS Issue Brief Number 2010-02. March 5, 2010. http://cnas.tamu.edu.
  • Rosson, Parr. 2009 Economic Impacts of U.S. and Minnesota Exports to Cuba. CNAS Issue Brief Number 2010-03. March 5, 2010. http://cnas.tamu.edu.
  • Rosson, Parr. 2009 Economic Impacts of U.S. and North Carolina Exports to Cuba. CNAS Issue Brief Number 2010-04. March 5, 2010. http://cnas.tamu.edu.
  • Rosson, Parr. 2009 Economic Impacts of U.S. and Oklahoma Exports to Cuba. CNAS Issue Brief Number 2010-05. March 5, 2010. http://cnas.tamu.edu.
  • Rosson, Parr. Potential Economic Impacts of a Colombia Trade Agreement. CNAS Issue Brief Number 2010-01. February 22, 2010. http://cnas.tamu.edu.
  • Rosson, Parr. The Cuban Market for U.S. and Texas Food Products. CNAS Issue Brief Number 2009-06. September 2009. http://cnas.tamu.edu.
  • Rosson, Parr. Tourism and Agriculture in Cuba. CNAS Brief (unnumbered). March 22, 2010. http://cnas.tamu.edu.
  • Rosson, III, C. Parr. "Discussion: Exchange Rates, Energy Policy and Outcomes in Agricultural Markets," Journal of Agricultural and Applied Economics, 41,2 (August 2009): 529-530, Southern Agricultural Economics Association.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Estimated Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010. CNAS Publication Number 2010-01. March 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Texas. CNAS Issue Brief Number 2010-06. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Minnesota. CNAS Issue Brief Number 2010-07. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Missouri. CNAS Issue Brief Number 2010-08. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Louisiana. CNAS Issue Brief Number 2010-09. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Nebraska. CNAS Issue Brief Number 2010-10. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on North Carolina. CNAS Issue Brief Number 2010-11. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Oklahoma. CNAS Issue Brief Number 2010-12. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on California. CNAS Issue Brief Number 2010-13. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Arkansas. CNAS Issue Brief Number 2010-14. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Illinois. CNAS Issue Brief Number 2010-15. March 24, 2010. http://cnas.tamu.edu.
  • Susanto, Dwi, C. Parr Rosson, Flynn J. Adcock, and David P. Anderson. "Impact of Foreign Hired Labor on Milk Production and Herd Size in the United States." 2010 Journal of ASFMRA, Vol 24, No. 2, June 2010 pp. 63-73. American Society of Farm Managers and Rural Appraisers. www.asfmra.com.
  • Susanto, D., C.P. Rosson, D.P. Anderson and F.J. Adcock. "Immigration Policy, Foreign Agricultural Labor, and Exit Intentions in the United States Dairy Industry." Journal of Dairy Science, Vol 93, Issue 4, April 2010 pp. 1774-1781. American Dairy Science Association.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on New York. CNAS Issue Brief Number 2010-16. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Virginia. CNAS Issue Brief Number 2010-17. March 24, 2010. http://cnas.tamu.edu.
  • Rosson, C. Parr, III, Flynn J. Adcock, and Eric Manthei. Economic Impacts of the Travel Restriction Reform and Export Enhancement Act of 2010 on Wisconsin. CNAS Issue Brief Number 2010-18. March 24, 2010. http://cnas.tamu.edu.
  • Samani, Z., A.S. Bawazir, M. Bleiweiss, R. Skaggs, J. Longworth, V.D. Tran, and A. Pinon. Using Remote Sensing to Evaluate the Spatial Variability of Evapotranspiration and crop Coefficient in the Lower Rio Grande Valley, New Mexico. Irrigation Science. 2009. DOI 10.1007/s00271-009-0178-8.
  • Samani, Z., A.S. Bawazir, M. Bleiweiss, and R. Skaggs. Identifying Opportunities for District-Wide Savings Using Remote Sensing Technology. A chapter in: Irrigation District Sustainability - Strategies to Meet the Challenges. Pages 313-322 Eds: S.R. Knell and S.S. Anderson. Denver, CO: USCID. ISBN: 978-1-887903-26-4. 2009.


Progress 07/15/08 to 07/14/09

Outputs
OUTPUTS: Continued to track trade agreements such as NAFTA and CAFTA in an effort to analyze their economic impacts on Texas and US agriculture. Conducted a comprehensive national survey of the employment practices of America's dairy farmers to determine their reliance on foreign-born workers and their views on immigration reform. This study was sponsored by the National Milk Producers Federation (NMPF). With a response rate of 41%, more than 2,000 dairy farmers from 47 states returned surveys regarding their hiring practices. Results were disseminated nationally via a joint effort between CNAS and NMPF. Continued international efforts by co-sponsoring the 16th annual Farming for Profit conference held in Moose Jaw, Saskatchewan, Canada in June and presented four export marketing workshops in Guatemala as part of the Texas A&M Food for Progress project in that country. IMPLAN, the input/output economic impact model, was also used to estimate the impacts on Texas agriculture of migrant labor issues, including immigration reform, invasive species, water resources, and exports to Cuba. Exporting to Cuba workshops continue to be a key component of CNAS efforts as workshops were held in San Antonio, Houston and Uvalde over the past year. CNAS faculty and staff presented 14 selected papers, 1 symposium, and 3 posters at the professional meetings of the American Applied Economics Association in July 2008 and the Southern Agricultural Economics Association in February 2009. The papers focused on topics such as meat demand in the US, Mexico and Guatemala, the Korean import demand for wine, the global rice market, the impacts of dollar depreciation and transportation costs on US agricultural trade, US cottonseed and sorghum exports, the impacts of US fish and crawfish imports on prices, the impacts of domestic and trade policies on the global soybean complex market, and the impacts of remittances on economic growth in Latin America. Posters examined the impacts of bio-ethanol on crop acreage allocation, the global sugar quota market, and US crawfish impacts while the symposium addressed impacts of migrant labor on Texas and U.S. agricultural production. 45 presentations were made with an estimated attendance of 2,655. The CNAS project website, http://cnas.tamu.edu, is another outlet for research results and was visited approximately 17,500 times from July 2008 to June 2009, resulting in nearly 63,000 hits. PARTICIPANTS: Parr Rosson, PI, Director and Economist, Center for North American Studies, Department of Agricultural Economics, Texas Agrilife Extension Service, College Station, TX. Flynn Adcock, Assistant Director and International Program Coordinator, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Dwi Susanto, Post-Doctoral Research Associate, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Eric Manthei, Extension Associate, Center for North American Studies, Texas Agrilife Extension Service, College Sation, TX. Rafael Costa, Graduate Research Assistant, Center for North American Studies, Texas Agrilife Research, College Sation, TX. Joe Pena, Extension Economist, Texas Agrilife Extension Service, Uvalde, TX. Luis Ribera, Extension Economist, Texas Agrilife Extension Service, Weslaco, TX. Marco Palma, Extension Economist, Texas Agrilife Extension Service, College Sation, TX. P. Lynn Kennedy, Professor and Sub-Contractor PI, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Bryan Hilbun, Research Associate, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Yung-Jae Lee, Post-Doctoral Research Associate, Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA. Jaime Malaga, Assistant Professor and Sub-Contractor PI, Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX. Pablo Martinez-Mejia, Post-Doctoral Research Associate, Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX. Terry Crawford, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. William Gorman, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. Rhonda Skaggs, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. Jay Lillywhite, Professor, Department of Agricultural Economics and Agricultural Business, New Mexico State University, Las Cruces. TARGET AUDIENCES: Target Audiences include the following categories: 1. State, Federal, and International Policy Makers such as U.S. Congressional and Senatorial offices, U.S. Department of Agriculture staff, the Texas Department of Agriculture, the North American Agricultural Market Integration Consortium, and the CAFTA-DR Agrifood-Market Integration Consortium. 2. State, National, and International Agribusinesses and Associations such as American Farm Bureau Federation, American Sugar Cane League, Border Trade Alliance, U.S. Rice Producers, Texas Beef Council, Texas Grain Sorghum Producers, Independent Cattlemen's Association of Texas, Texas Wheat Association, Texas Agricultural Industries Association, Texas Vegetable Association, Texas Citrus Mutual, Texas Produce Association, Texas Farm Bureau, Louisiana Farm Bureau, Port of Corpus Christi, Port of Beaumont, Port of Galveston, and Agricultural Producers Association of Saskatchewan. 3. Media including print, radio, television, and Internet-based. 4. Members of the academic community including international agricultural trade economists around the U.S., undergraduate students, and graduate students. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Full implementation of NAFTA occurred January 1, 2008. Annual agricultural trade between the US and Mexico has grown 326% since NAFTA, while US trade with Canada has grown 243%. Canada and Mexico account for 28% of US agricultural exports while providing 36% of imports. 50% of surveyed farms use immigrant labor, and immigrant labor accounts for 62% of milk production on the farms surveyed. An estimated 138,000 full-time equivalent workers in 2008 and about 57,000 of those were of foreign origin, primarily from Mexico. Eliminating immigrant labor would reduce the us dairy herd by 1.34 million head, milk production by 29.5 billion pounds, and number of farms by 4,532, while retail milk prices would increase by 61%. Dairy farm workers are paid an average wage of $10/hour and with non-wage benefits included, an annual equivalent compensation of $31,500 dairy farms employed. Eliminating immigrant labor would reduce US economic output by $22 billion and 133,000 jobs would be lost. 110 people attended a series of three consecutive day-long export marketing workshops which were presented free of charge to Guatemalan agricultural producers, agribusiness owners, non-governmental organization representatives, university faculty and others. While Guatemala exported more than $1.3 billion in agricultural products to the US in 2008, the vast majority of these exports are bananas, coffee and sugar products. However, there is an increasing interest in and opportunity for "non-traditional" agricultural products such as peas, pineapple, cantaloupe, frozen broccoli, macadamia nuts, and even flowers. Workshop attendees were instructed in basic export marketing procedure, provided an overview of the US market, and shown sites where international marketing and export regulatory information could be found. Infestations of Zebra chip could readily affect 35-40 percent of Texas potato acreage. Calculated estimates indicate that about 38 percent of Texas acreage could be lost or sold at reduced prices attributable to increased presence of Zebra chip. This level of damage would result in a loss of about 7,500 acres of potatoes in Texas, resulting in a loss in the value of Texas potato production of $33.4 million annually. If the practice of irrigation was stopped in Uvalde County, Texas, the total economic loss is estimated to be $44.1 million, with $32 million on the farm and $12 million in the non-farm sectors noted above. About 600 full-time workers are supported by irrigated agriculture. More than 350 of those work on farms with another 246 have off the farm.

Publications

  • Arguello, P., J. Malaga, B. Chidmi, E. Belasco, T. Knight, and J.A. Lopez. "Derived Demand for Cotton Seed: Dairy Industry Component." Proceedings of the Annual Meetings of the American Agricultural Economics Association, AAEA. Orlando, Florida, July 2008. http://ageconsearch.umn.edu.
  • Duch-Carvallo, T. and J. Malaga. "International Sorghum Trade: United States beyond the Mexican Dependency" Proceedings of the 2009 Meetings of the Southern Agricultural Economics Association, Atlanta, Georgia, Feb. 2009. http://ageconsearch.umn.edu.
  • Kang, H. and P.L. Kennedy. (2009) Bilateral Trade and Economic Growth: The Empirical Evidence Between the U.S. and South Korea. Journal of Rural Development. 32(2):59-88.
  • Lee, Y. and P.L. Kennedy. (2008) An Examination of Inverse Demand Models: An Application to the U.S. Crawfish Industry. Agricultural and Resource Economics Review. 37(2):243-56.
  • Rosson, Parr, Eric Manthei and Flynn J. Adcock. Economic Impacts of Irrigation on Uvalde County, Texas. CNAS Issue Brief 2009-01, February 2, 2009. http://cnas.tamu.edu.
  • Rosson, Parr, Flynn Adcock, Dwi Susanto, and David Anderson. The Economic Impacts of Immigration on U.S. Dairy Farms. Prepared Under Contract for National Milk Producers Federation. June 2009. http://www.nmpf.org/files/file/NMPF%20Immigration%20Survey%20Web.pdf.
  • Lee, Y. and P.L. Kennedy. (2009) Effects of Price and Quality Differences in Source Differentiated Beef on Market Demand. Agricultural and Applied Economics. 41(1):241-52.
  • Lopez, J.A. and J. Malaga. "Forecast and Simulation Analysis of Mexican Meat Consumption at the Table Cut Level: Impacts on U.S. Exports." Proceedings of the 2009 Meetings of the American Agricultural Economics Association. http://ageconsearch.umn.edu.
  • Lopez, J.A., and J. Malaga. "Estimation of a Censored Demand System in Stratified Sampling: An Analysis of Mexican Meat Demand at the Table Cut Level." Proceedings of the 2009 Meetings of the Southern Agricultural Economics Association, Atlanta, Georgia, Feb. 2009. http://ageconsearch.umn.edu.
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  • Martinez-Mejia, P. and J. Malaga. "Has the European Union Developed a Taste for US Sorghum" Texas Tech Sorghum Research Initiative, Texas Tech University, July 2008. http://www.depts.ttu.edu/aged/Sorghum/text/BulletinSorghum.pdf.
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  • Rosson, Parr, Eric Manthei and Flynn J. Adcock. Economic Impacts of Zebra Chip on Texas. CNAS Issue Brief 2009-01, January 27, 2009. http://cnas.tamu.edu.
  • Rosson, Parr, Joe Pena, Eric Manthei and Flynn J. Adcock. Economic Impacts of Agriculture and Recreation in the Winter Garden. CNAS Issue Brief 2009-03, March 10, 2009. http://cnas.tamu.edu.