USDA expects U.S. ag exports to hit a record for 2021’s fiscal year and top it again in 2022. In its August Quarterly Ag Export Forecast, the agency says exports in 2021 will top $173.5 billion, then increase to $177.5 billion the following year.
Driving the increase this year is improved demand for livestock, poultry, and dairy exports, as well as adopting the World Trade Organization’s definition of “Agricultural Products.” In 2022, USDA points to higher prices for soybeans, cotton, and horticultural products as drivers behind the future expansion. China is expected to remain the top export destination, followed by Canada and Mexico.
Ag Secretary Vilsack reports every billion dollars the U.S. agricultural exports stimulate another $1.14 billion in domestic economic activity and supports more than 7,700 full-time civilian jobs.
However, hurricane Ida is shaking up grain exports in the U.S.’s busiest agricultural port, New Orleans, a problem that could balloon as the nation approaches its peak harvest season in the coming weeks. Farmers in the Midwest will soon begin harvesting corn and soybean crops, and a hefty percentage of it flows down the Mississippi River where it’s then shipped around the world via the Gulf of Mexico.
Officials from some of the biggest trading houses are already assessing damages to grain elevators and port terminals after Ida tore through Louisiana and Mississippi over the past weekend. Most say they will begin reopening facilities very soon. If that does not happen, global importers will start seeking alternatives, such as shipments off the U.S. Pacific Northwest or out of Brazil and Argentina.
EDITOR’S TAKE:
Obviously great news about forecasting export records in 2021 and 2022. Agriculture depends on exports to sell the production that is above and beyond domestic demand. It helps boost prices and income, plus it helps drive efficiency and productivity on the farm/ranch.
The issue of disruptions to Gulf port shipping is concerning, but is hopefully only a temporary situation. Typically, since hurricanes provide plenty of advanced warning, businesses likely to be impacted have time to make adjustments and prepare. However, restoring electrical service to over a million homes and businesses could take weeks or even months.
All that said, increasing export sales will help boost truck sales. Record shipments overseas means more money in the pockets of farmers and ranchers. Who will be your best customer of the future – better make sure you put farmers/ranchers high on that list!
