USDA reports record year for exports

Published: Feb. 13, 2023 at 3:46 PM CST
Email This Link
Share on Pinterest
Share on LinkedIn

ADAMS COUNTY, Ill. (WGEM) - A recent report released by the USDA showed that U.S. agricultural exports broke records over the last crop year, totaling more than $190 Billion.

This represents an 11% increase, or $19.5 billion more, than the previous record set just back in 2021.

While the numbers are strong, Ursa Farmers Cooperative Commercial Grain Merchandiser Scott Meyer said one of the main driving factors was inflation.

“Overall volume year on year from the previous year is gonna be steady to actually maybe down a little bit, but when you combine that with the higher prices, the total value of those commodities being exported per the report, is high and it’s a record,” said Meyer.

Regardless of the total price tag, Meyer said strong exports are still important for local corn, wheat and soybean farmers.

“There’s interior demand to crush soybeans, they know there’s U.S. demand for ethanol... we have our livestock and feed demand that’s constant... so the one demand factor that really affects prices as much as anything is our exports and how much we’re able to export our extra,” said Meyer.

The top 10 exporting markets of the US include: China, Mexico, Canada, Japan, the European Union, South Korea, Taiwan, the Philippines, Colombia and Vietnam.

According to Meyer, Mexico leads the exports when it comes to corn, while China is the main importer of American soybeans.

He said exports for the current crop year are expected to be down slightly on corn and soybeans due to increased demand and slow worldwide growth.

However, global ethanol demand and the lower value of the dollar could actually help exports over the next year.

“A weaker dollar might not be the best for bringing goods into the country from China and other countries, but for those of us in the export business, a weaker dollar definitely gives us the ability to export more and get more commodity out of our country,” said Meyer.

Copyright 2023 WGEM. All rights reserved.