U.S. farm exports will not only mark a record this year but should also become the fastest growing share of all U.S. exports.
Tight world supplies and high food prices had already prompted a record USDA Ag export forecast of 196 billion dollars for the fiscal year ending this month.
Now USDA economist James Kaufman tells USDA Radio farm exports values are growing faster than exports of all U.S. goods and grabbing a larger share of total US export business. Kaufman; “From 9-percent in 2002 to 12-percent in 2021.”
While the dollar value of Ag exports grew at about 11 percent a year, versus six percent average for all other exports. One reason according to Kaufman; “There’s been relatively slow growth of exports of capital goods, like machinery and automobiles.”
But a key reason is the high prices of ag commodities and food. Kaufman; “But, there’s also been extremely strong demand.”
Part of the reason for that is the war in Ukraine, causing tight global supplies as Russia destroys farming facilities, steals grain and damages ports, despite a UN, Turkish-brokered deal to free up shipping.