New Report: Washington State’s Agriculture and Seafood Export Opportunities

1Executive Summary

Food grown by Washington state farmers is enjoyed by customers all around the world. By capitalizing on unique geographic, market, and infrastructure conditions in the state, Washington's agriculture sector has emerged as a cornerstone of the state's trade-driven economy — employing over 164,000 people and exporting tens of billions of dollars of products every year.

Thanks to the country's largest public port system and a favorable climate, Washington-grown or harvested products — including aquaculture products — occupy a prominent position in the global marketplace. Notably, Washington state is the leading U.S. producer of hops, apples, and blueberries and is second only to Alaska among U.S. states exporting seafood products.

Expansive and efficient trade infrastructure also makes Washington state a crucial trade link for farmers as far east as Minnesota. In fact, ports along the Columbia and Snake Rivers are the point of origin for more than half of all U.S. wheat exports.

However, after decades of steady export growth, Washington's agriculture sector faces significant challenges. Trade tensions and tariffs, growing non-tariff barriers, and pandemic-driven logistical disruptions have taken a heavy toll on Washington farmers. This report examines these challenges and charts a path forward through smart policy and investment.

2A Globally Prominent Powerhouse

Agriculture has been a cornerstone of Washington's economy throughout its history. The state's climate supports a globally competitive and thriving agriculture sector — Washington is the top national producer and exporter of apples, cherries, and pears, accounting for 90 percent of apple and pear and 72 percent of cherry exports in the U.S. The state also leads the country in the production of blueberries, hops, and other crops.

Dairy is also a crucial state product, led by farmers in Whatcom County and the Yakima Valley region. Washington exported $627 million worth of dairy products in 2021 — the state's fifth most valuable agricultural export product.

Supported by the nation's largest public port system — which boasts 75 ports across 33 of Washington's 39 counties — over $14.3 billion of agriculture products were exported through Washington state in 2021.³ More than half of all U.S. wheat exports flow through the Columbia–Snake River System.⁵

Strong global recognition for high-quality produce and an extensive public port system that connects farmers as far east as Minnesota have converted Washington's natural agricultural advantage into a globally competitive export pillar. In 2021, agriculture products were the state's highest-value export category.⁶ "Pass-through exports" — where agriculture products originating in other U.S. states are exported through Washington's infrastructure and ports — solidify the state's role as a critical national trade hub. Jointly, Washington-produced and pass-through exports totaled $22 billion in 2021 and were directly responsible for over 164,000 jobs, primarily on family-owned farms, which account for 96% of all farms in the state.^7,8

Washington is also a leader in aquaculture and seafood exports. Over $1 billion of Washington-harvested fish and seafood was exported in 2021 — second only to Alaska in shipments of fish and shellfish abroad.⁹ Collectively, Washington-grown and processed food and agriculture exports totaled $7.7 billion in 2021, rebounding from pandemic-era lows of $6.7 billion in 2020.

Top Washington Agriculture Export Products

• Apples, Pears & Cherries — Washington accounts for 90% of U.S. apple and pear exports and 72% of cherry exports, with strong demand from Asia, Latin America, and the Middle East.
• Wheat — Eastern Washington and the Palouse are among the most productive wheat-growing regions in the world; most production is destined for export markets via the Columbia–Snake River system.
• Hops — The Yakima Valley produces the majority of U.S. hops, fueling the global craft beer industry.
• Dairy — $627 million exported in 2021; the USMCA's dairy provisions have helped expand access to the Mexican market.
• Seafood — Washington's coastline and aquaculture operations make it a major supplier of salmon, oysters, geoduck, and other high-value seafood products to Pacific Rim markets.
• Blueberries & Specialty Crops — Washington leads nationally in blueberry production, with a growing international market for premium berries and specialty crops.

3Innovation & Technology in Agriculture

Washington farmers recognize that maintaining the state's competitive advantage in agriculture exports requires modernizing with the latest technologies and leveraging emerging artificial intelligence (AI) capabilities to improve output and efficiency. Building on its natural advantages and strong export infrastructure, Washington's agriculture sector is rapidly evolving through innovation and integration.

Washington State University (WSU) is partnering with USDA to lead the AgAID Institute, where researchers are developing AI solutions to agricultural problems. WSU scientists have designed a robotic twining machine for hops as well as drones to deter fruit-eating birds.¹⁰ Local companies like FarmHQ are using data, sensors, and cloud-based software to provide remote monitoring and control, delivering cost savings and efficiency to farmers across the state.¹¹

A CARES Act-funded program using sensors to monitor agricultural conditions — including soil moisture, weather, and plant health — is operating two pilot projects in Snohomish County.¹² These innovations are a preview of Washington's agricultural future if technology is fully leveraged to discover new efficiencies and improve global competitiveness.

4Trade Tensions & Tariffs

After agriculture exports peaked in 2014, the competitive advantage enjoyed by Pacific Northwest farmers has been eroded in recent years. Washington state agriculture exporters generally depend on several key markets: Canada and Mexico for tree fruit and other crops; and China, India, Vietnam, and the broader Asia-Pacific region for export growth. However, increased bilateral tensions and retaliation for U.S. Section 232 and 301 tariffs have significantly decreased exports and made Washington agriculture exports less accessible and competitive in these markets.

The 2017 withdrawal from the Trans-Pacific Partnership (TPP) signaled a broader shift away from trade agreements toward a tariff-first approach that persists today. While a Phase One Agreement with China was forged to help bolster U.S. agriculture exports, the commitments outlined in the agreement largely do not apply to Washington state produce exports, China's purchase agreements have not been fulfilled, and significant retaliatory tariff barriers remain in place.

As U.S. producers have lost sales and hard-earned market share, producers in competing countries have benefitted greatly from U.S. tariff policy decisions. Even if tariffs are resolved in the future, these retaliatory measures could prove a long-term detriment to Washington's export competitiveness. Without speedy action to address these trade tensions, Washington farmers will continue to suffer extreme losses and cede footing in key international markets.

5Behind-the-Border Barriers

Alongside tariff regimes, Washington farmers are also feeling the cost of non-tariff barriers — also known as behind-the-border barriers. The Office of the U.S. Trade Representative has identified several key areas of regulatory concern that could hamper agriculture exports, including burdensome facility registration requirements, non-science-based sanitary and phytosanitary (SPS) barriers, and burdensome import licensing requirements.¹⁷

Removing these requirements and ensuring fair application of international trade standards will lower costs and boost exports for the Washington agriculture sector. Active federal engagement and negotiations will be necessary to resolve outstanding trade restrictions.

6Port & Infrastructure Challenges

Washington state's extensive port system and intricate infrastructure of rail, roads, and rivers are a vital link in the global supply chain, enabling on-time and low-cost exports of agricultural goods. However, since the onset of the pandemic, supply chain issues have plagued producers and exporters alike, making it more difficult and more expensive to ship goods.

The Baltic Dry Index, a measure used to track the cost of shipping, rose 10-fold compared to pre-pandemic levels and remains over 3 times higher than pre-pandemic baseline levels.¹⁸ Simply getting exports in containers has also become a challenge. Many ships have been leaving ports with empty containers due to backlogs, overloaded warehouses, and driver shortages.

The Northwest Seaport Alliance (NWSA) reports that the export volume of empty containers rose 53.5% year-over-year in 2021 and 15.6% year-over-year in 2022. By July 2022, almost 60% of international export capacity was unused.¹⁹ This largely contributed to a 30% decline in agriculture exports coming from the NWSA in the latter half of 2021.²⁰

7Emerging Opportunities

Reorienting Washington state's agriculture trade to capitalize on future opportunities requires a shift to a multifaceted trade policy environment — combining private sector actions, local measures, and a return to a market-oriented posture in trade policy.

Free Trade Agreements Drive Export Growth

Removing tariffs has proven an effective means of increasing trade. After the Phase One agreement with China, agriculture exports increased significantly — though still below pre-pandemic levels. FTA partners purchased 6.4 times more Washington exports per capita than non-FTA countries in 2018.²² The US-Mexico-Canada Agreement (USMCA), put into place in 2020, has been critical to expanding access to the Mexican dairy market, resulting in a 65% increase in U.S. dairy exports compared to pre-2020 numbers.²³

2023 Farm Bill: A Critical Window

The Farm Bill is a recurring bill, reauthorized every 5 years, that governs agricultural and food issues and provides funds for several essential programs for Washington farmers. Its upcoming reauthorization provides an opportunity to invest in provisions that will open new markets for Washington exports. Two programs are especially crucial:

• Market Access Program (MAP) — provides cost-sharing for marketing and promotional activities. MAP has remained at a stagnant funding level of $200 million since 2006. Sequestration, inflation, and rising program participation mean there is less money for more participants, threatening the program's effectiveness.
• Technical Assistance for Specialty Crops (TASC) — directly addresses SPS and technical barriers that threaten exports of specialty crops such as apples, cherries, and pulses. Full and increased funding in the 2023 Farm Bill is essential.

Short-Term Supply Chain Solutions

NWSA is partnering with USDA to provide "pop-up" sites in Seattle and Tacoma for prepositioning containers of dry or refrigerated agriculture goods — an initiative expected to provide operational and cost relief to farmers and increase export shipments.²⁴ The Ocean Shipping Reform Act, passed into law in June 2022, could also help ease the high volume of empty containers by placing restrictions on unused capacity on cargo ships.²⁵

8Policy Recommendations

To support Washington's agriculture sector and rural communities, state and federal elected officials, representatives, and community leaders should push for the following specific policies and programs:

• Clear barriers to trade through bilateral and multilateral negotiations — including Congressional approval of Trade Promotion Authority to give the administration greater latitude to pursue market-opening agreements.
• Eliminate or significantly reduce retaliatory tariffs — through federal legislation and executive action to renew an aggressive, export-oriented approach. This includes enforcement of current provisions in existing trade agreements such as the dairy provisions in USMCA, and advocacy for removal of U.S. Section 232 (steel and aluminum) and Section 301 retaliatory tariffs.
• Assertively pursue market-opening agreements — and resume productive talks with trading partners to modernize current agreements and explore new markets. This includes market access provisions in broader economic frameworks, tariff barrier removal in negotiations for new agreements (e.g., Japan, U.K.), and resumed trade talks with China focused on reducing tariffs and other impediments to agriculture trade.
• Continue efforts to address technical standards — ensuring countries follow sound science and international protocols, including monitoring and providing input on evolving international food safety standards.
• Invest in technology and infrastructure — to ensure farmers can evolve, transform, and thrive in the digital age. Infrastructure reform and investment in rural areas will benefit Washington state farmers in the decades to come.
• Provide farmers access to capital — through congressional support for export programs such as the MAP and TASC program, and through expansion of current export trade assistance programs.
• Address supply chain issues — with an effort to restore more stability to the flow of goods, greater availability of containers, and more reliability in transportation. Consider new pilot projects like pop-up ports to address short-term capacity issues.
• Plan and launch state trade missions with a focus on agriculture products and potential markets.