Breaking down non-tariff trade barriers is a major concern for American farmers.

Last year was a banner year for U.S. agricultural exports. International sales of U.S. farm products rose by 11% in 2022, exceeding $196 billion. The outlook for 2023 looks like that growth will continue.

Illinois farmers depend on robust sales overseas to remain profitable.“Exports are absolutely crucial to the agricultural sector, particularly in the Midwest,” University of Illinois agriculture economist Gary Schnitkey told The Center Square.

Soybean farmers, for example, export 50% of their crop.

“Those exports increased in 2022, in part because there was a drought and shortages, to a certain extent, in Brazil and Argentina,” two of the U.S.’s top export competitors, Schnitkey said.

U.S. farmers have come off three very profitable years, where good weather, high yields and high demand have meant high prices. For that to continue, the export market needs to remain vibrant.

“For income and prices to remain at the levels they are now, we need exports to continue to grow,” Schnitkey said.

Illinois is the number one state in the U.S. for soybean production. Brazil is a top U.S. competitor in soybean exports. China is the number one buyer of exported soybeans for both the U.S. and Brazil.

USDA undersecretary for trade and foreign agricultural affairs Alexis Taylor was in Iowa this month to talk about the Biden administration’s efforts to increase international trade. She told Brownfield Ag News that the USDA is working to expand market opportunities.

“Strong export markets are really critical to farmers & ranchers & livelihoods,” she told Brownfield.



Source:advantagenews.com