USDA ERS – Agricultural Trade Multipliers

Impact of Agricultural Trade on U.S. Economy and Employment

Introduction to Agricultural Trade Multipliers (ATM)

The United States Department of Agriculture’s Economic Research Service (USDA ERS) annually estimates the employment and output effects of trade in farm and food products on the U.S. economy using Agricultural Trade Multipliers (ATM). These multipliers reflect the economic activity and jobs generated by agricultural exports, aligning with the Sustainable Development Goals (SDGs) to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Economic Impact of Agricultural Exports

Agricultural exports play a significant role in the U.S. economy, creating a ripple effect that stimulates economic activity across various sectors. In 2022, U.S. agricultural exports valued at $197.4 billion generated an additional $214.6 billion in economic activity, resulting in a total economic output of $412 billion. This indicates that every dollar of U.S. agricultural products exported led to $2.09 of domestic economic activity. The services, trade, and transportation sector reaped the most benefits, with an estimated $73.6 billion in additional economic activity.

Employment Opportunities from Agricultural Exports

The export of agricultural goods initiates a chain reaction of labor demands, creating widespread employment opportunities. In 2022, U.S. agricultural exports supported 1.25 million jobs, translating to approximately 6,338 jobs for every $1 billion of agricultural products exported. The nonfarm sector benefited the most, generating around 773.9 thousand jobs, while on-farm exports supported 477.2 thousand jobs.

Inclusion of Biodiesel in Agricultural Exports

Biodiesel, primarily produced from soybean oil, contributed approximately $1.5 billion to U.S. agricultural exports in 2022, even though it is not classified by the World Trade Organization (WTO) as an agricultural product.

Annual Adjustments and Details of ATM Estimates

• ATM estimates are adjusted annually for changes in prices and labor productivity.
• The estimates include details on 124 agricultural products and product groups based on the WTO’s definition of agricultural products.
• ATM estimates are available for open multipliers at either the producer or port stage of export.
• The estimates are downloadable in Microsoft Excel format.

Using the Agricultural Trade Multiplier Calculator

The ATM calculator offers two options for displaying multipliers:

1. Predefined USDA ERS estimates for the most recent calendar year.
2. An interactive calculator that allows users to select a basket of exports or apply new trade margins to commodities.

Step-by-Step Guide for ATM Calculator

Users can follow a simple three-step process to generate customized multiplier estimates using the ATM calculator:

1. Select a commodity or group of commodities.
2. Choose the type of multiplier (producer-level or port-level) and input trade margins if necessary.
3. Review and analyze the results generated by the calculator.

For detailed instructions on using the ATM calculator, assumptions, methodology, and glossary terms, users can refer to the Documentation page provided by USDA ERS.

The ATM estimates and their implications on employment and economic output underscore the importance of agricultural trade in achieving SDGs related to economic growth and employment. By understanding and utilizing these multipliers, policymakers and stakeholders can make informed decisions that contribute to sustainable development.

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1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

Specific targets under the identified SDGs based on the article’s content include:

1. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
2. Target 12.2: Achieve the sustainable management and efficient use of natural resources.
3. Target 17.11: Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article implies the following indicators that can be used to measure progress towards the identified targets:

• Indicator for Target 8.2: The economic activity and jobs generated by agricultural exports, as measured by the Agricultural Trade Multipliers.
• Indicator for Target 12.2: The annual adjustment of Agricultural Trade Multipliers to account for changes in prices and labor productivity.
• Indicator for Target 17.11: The value of U.S. agricultural exports and the number of jobs supported by these exports.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

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Fuente: ers.usda.gov

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