The United States will export a record $191 billion worth of agricultural products this fiscal year as the world scrambles to replace the corn, wheat, and vegetable oil it would normally get from Russia and Ukraine, according to the latest USDA forecast. It would be the second year in a row of record-high farm exports.
High commodity prices and robust demand is driving sales to record levels. The war-driven $191 billion in exports would be an 11% increase from the mark of $172.2 billion set last year during the global recovery from the pandemic and 37% larger than exports during fiscal 2020.
“Russia’s invasion of Ukraine significantly increased the uncertainty of agricultural supply and demand conditions in that region and globally,” said the USDA. “Global wheat prices have spiked with resultant disruptions to trade, as well as U.S. corn sales.
Soybean exports were forecast at a record $32.3 billion, corn at $19.1 billion, and cotton at a record $9 billion this fiscal year. Soybeans are the largest U.S. farm export and would generate $1 of every $6 in ag exports in 2022.
Ordinarily, Russia and Ukraine are leading wheat suppliers for the world market, and they are large corn exporters as well. Ukraine has been number one in exports of sunflower oil.
Exports to China were forecast at a record $36 billion, up from $33.4 billion in fiscal 2021 and more than double the $17 billion of fiscal 2020, when China and the United States de-escalated their trade war.
The quarterly Outlook for U.S. Agricultural Trade report is available here.
Editor’s Take:
It should be noted that part of the reason for such a positive forecast is the uncertainty surrounding the situation in the Ukraine. That said, this is extremely good news for U.S. farmers/ranchers. Record exports will underpin and support the increased net farm income in 2022, and perhaps beyond. It’s never too early to start letting farmers know what you can offer as a CAD member. Be sure to inform them about all the exclusive rebates and discounts from our fantastic AgPack Partners! You have a winning combination – use it to your advantage!
