Project Agriculture

In 2023, Arizona proudly exported $556 million in agricultural products to Canada, contributing to a total bilateral trade valued at $869 million. This impressive figure included $134 million in fresh and chilled vegetables, underscoring Arizona’s commitment to producing high-quality agricultural goods. In return, Canada contributed $313 million in processed foods, highlighting the collaborative nature of our trade relationship. (Reference:Agriculture and Agri-Food Canada)

Canada plays a crucial role by supplying potash and other essential fertilizers for agricultural operations in Arizona. This interdependent trade relationship highlights the importance of collaboration. The Canada Arizona Business Council (CABC) created this initiative to explore how the future of agriculture will transform the farming landscape, as well as its supply chains and distribution networks between Canada, Arizona, and Mexico.

Canada, Mexico and Arizona have a deep, respected, and reputable agricultural trade relationship, which should be duly noted in the community as Canada is the state’s major export partner: Canada (33%), Mexico (22%), and China (13%); with key exports encompassing a wide range of products, including fruits, winter greens, nuts, seeds, wheat, hay, cotton, eggs, beef, and milk, reflecting the state’s rich agricultural diversity and productivity. (Reference: Agriculture and Agri-Food Canada)

Maintaining and strengthening trade relationships with Mexico and Canada is crucial for Arizona’s agricultural sector and its future. Tariffs, trade agreements, and regulatory considerations can influence the flow of goods. Arizona can benefit from cross-border collaborative agricultural research, pest management initiatives, and shared technology as part of USMCA.

In 2022, Mexico exported $43.4 billion in agricultural goods to the U.S. Similarly, the U.S. exported $28.4 billion in agricultural goods into Mexico, representing 70% of Mexico’s total food and agricultural imports. The Port of Nogales, AZ is one of the busiest land ports for trade in the U.S., handling a large portion of the U.S.-Mexico agricultural trade. Such partnerships can enhance productivity and resource management. (Reference: International Trade Administration)

Additionally, seasonal labor, much of which comes from Mexico, is essential for Arizona’s agriculture. A significant number of jobs in Arizona are linked to the state’s role in facilitating trade with Mexico, including those in transportation, logistics, food safety, border inspection, manufacturing, and retail distribution.

Ensuring that labor policies support an adequate workforce is vital for maintaining production levels as advanced technology shifts from labor to technology managers who are running the software, equipment, and harvesting from their offices, transitioning from physical labor to a new skill set of workforce. This initiative is a collaborative effort to unite farmers, businesses, educational/trade partners, and government officials during the current transition from historic agriculture practices to the new frontier. It addresses the new requirements in energy usage for advanced farming technology, the transition from physical laborers to technicians, water efficiency, and climate management.

Arizona and Canada are embracing new best practices in agricultural technologies, replacing outdated practices with advanced methods. Farmers are utilizing technology to improve every aspect of agriculture, including planting, growing, irrigation, monitoring, harvesting, preserving, packaging, tracking, and distribution. Precision tools such as blockchain for tracking, drones, robotic harvesters, soil sensors, satellite imaging, and data analytics are being employed to increase farming efficiency. This not only increases crop yields but also promotes sustainable farming by conserving water and reducing the use of chemicals. Practices like regenerative agriculture and cover cropping are also improving soil fertility and biodiversity. (References: Agriculture New Tech and Agriculture Innovation)

Arizona, Canada, and Mexico have established a highly interdependent trade relationship in agriculture. The collaboration among farmers and new tech practices in all three regions is driving innovation that will create more efficiency while reducing these trade partners’ reliance on global markets. This partnership strengthens independence in North America, enhancing resilience to climate challenges and ensuring food security for the region. The CABC aims to raise awareness among its members and communities by fostering conversations that promote the growth of agriculture and the industry’s future, particularly in relation to advanced innovations. The organization focuses on the impact of these changes not only on the agriculture industry as a whole but also on their implications for Mexico, Canada, and Arizona.