Mexico is U.S. Second Largest Export Destination

New data from USDA’s Economic Research Service shows that between fiscal years 2018 and 2022, Mexico accounted for nearly 14 percent of all U.S. agricultural exports. With a total value of $28 billion, Mexico is projected to be the United States’ second largest destination for U.S. agricultural exports in fiscal year 2022, and is forecast to reach 15 percent in 2023.

On average, Mexico purchased $6.5 billion in U.S. grains and feeds per year from 2018 to 2022, accounting for 18 percent of the largest export commodity group. Demand for grains and feed has been spurred by the expansion of Mexico’s cattle industry and growing consumption of animal products. However, the report does not consider the future impacts of Mexico's decree banning imports of genetically engineered corn.

EDITOR’S TAKE:

It only makes sense that we conduct a great deal of trade with our neighbors to the south. Ever since NAFTA was formed in the 1970’s until today with the updates of the USMCA trade pact, Mexico has been a growing market for U.S. agricultural goods. This latest report from USDA simply confirms that fact. However, the recently announced ban on U.S. produced GMO corn could become a very substantial trade barrier. Fortunately, both countries and several trade and commodity organizations are working on a resolution.

Trade is extremely important for U.S. agriculture and the fact that our second most prolific market is very close by is also helpful in keeping the cost of those imported goods lower in Mexico. This type of market expansion has helped boost net farm income in the U.S. and makes it possible for farmers/ranchers to purchase those trucks you have in inventory. Just be sure to let them know what you have available by posting your inventory on AgTruckTrader.com!