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Ag Trade to Set new Records, USDA Says

When the ag fiscal year ends Sept. 30 it looks like U.S. ag exports will have set another record, according to a press statement issued by USDA. For Fiscal Year 2007, ag exports will top a record $79 billion with projections for FY2008 to top $83.5 billion. The sales record is being set across all major agricultural product groups.

The forecasts top the old record of $68.5 billion set last year. Secretary of Agriculture Mike Johanns notes that these export numbers show high demand for U.S. ag products worldwide. "They also reflect tight world markets for grains and oilseeds," he notes.

USDA is projecting corn exports to top $600 million in the next fiscal year thanks to a record crop, strong foreign demand and reduced competition. China's demand for soybeans and cotton remains strong, while developments in the biodiesel market will raise Europe's demand for soybeans as well. Meanwhile, horticulture exports will rise by $800 million, supported by strong demand and a competitive dollar. Beef exports are expected to increase $400 million due to larger volume.

Johanns, long a trade advocate, adds that trade agreements have a "huge impact." He notes that "if Congress ratifies the recently signed free trade agreements with Colombia, Korea, Panama and Peru, our producers will have increased access to some extremely important markets."

The table below shows a rundown on ag exports and imports.