US farm exports for the current fiscal year are expected to reach nearly $141 billion, setting another major record for the farm sector and strengthening the argument that Congress needs to pay more attention to a vital part of the US economy.
Despite the vulnerability of the farm sector (an industry whose livelihood depends on good weather and a steady labor pool), farmers in the United States have enjoyed years of steadily increasing incomes and profits. A major part of the agricultural boom rests on international demand for American farm goods.
Corn and soybeans, for example, have seen their international demand skyrocket in recent years. Increased ethanol production and consumption has helped drive up corn prices as nations across the globe find themselves importing more and more American corn. Developing nations and nascent word powers like China also find themselves importing more and more American goods. With a growing Chinese middle class consuming more and more meat, Chinese farmers have increased soybean production (a major source of animal feed) and have increased importation of American soybeans to cover production gaps.
The overall result is yet another year of record-breaking farm exports in the US. According to the USDA, farm exports have increased 3.8 percent from last year (from $135.8 billion to $140.9).
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Written by: Justin Ellison / Farm Plus Staff Writer