Boosted by large increases in most sales categories, U.S. farm exports mushroomed to a record $196.4 billion in the fiscal year that ended September 30, according to newly released Commerce Department data. Sales were 14% higher than the previous mark of $172.7 billion, set one year ago in fiscal 2021.
China, the number one market, bought a record $36.4 billion of U.S. agricultural products, topping its 2021 record of $33.6 billion, trade analyst Dylan Russell told USDA’s radio news service. Canada was second, with $28.3 billion, and Mexico was third, at $28 billion. In fiscal 2021, Canada imported $24.3 billion and Mexico bought $23.9 billion of U.S. agricultural goods. The three top customers accounted for 47 cents of every $1 in sales.
The record-breaking exports were driven by “huge increases” in sales, according to Russell. Soybeans, the single largest ag export, climbed 26%, to $33.3 billion. Wheat exports were up 15%, to $8.3 billion, and corn rose 12%. Cotton had the largest increase in percentage terms, 41%, to $9 billion. Dairy, red meats and ethanol also notched large increases. But rice sales fell 10% and tobacco 27%.
Imports also surged, shooting up 19%, to $194 billion, leaving a scant trade surplus of $2.4 billion, compared to the surplus of $8.4 billion the previous year. Ag imports are dominated by shipments of fruits, vegetables, nuts, wine, beer, distilled spirits, sweeteners and tropical products such as coffee and cocoa.
The USDA has forecast another bumper year for exports, estimated at near-record $193.5 billion in the fiscal year that opened October 1st. Soybean exports would rise to $35.2 billion and horticultural products to $39.5 billion, while cotton, beef and sorghum exports are forecast to turn slightly downward.
EDITOR’S TAKE:
You may be tired of hearing it, but agriculture depends on exports to provide that additional level of support above domestic demand alone. Some commodities export nearly half of the annual production to overseas destinations. When U.S. agriculture continues to set new export records that can only be good news for our farmers/ranchers.
What does that mean for you? Truck sales! Farmers use and purchase a lot of trucks! In fact, just in the next twelve months they are estimated to purchase or lease over one million trucks. Some farms make multiple purchases. We are aware of one large farmer who purchased multiple vehicles simply to get AgPack®! That’s right, farmers/ranchers know a great deal when they see it. So, when a customer comes in the door of your dealership, make it a practice to ask this one simple question: “Are you a farmer/rancher?” You could be amazed at how your sales improve and how AgPack® can help close the deal and let you keep more margin in your pocket.
