Data shows China is closing the gap towards reaching the goal of purchases in the Phase One trade agreement. American Farm Bureau Federation Economist Veronica Nigh said according to numbers released in April of this year, exports bound for China are around $10 billion, which is roughly 25% of the 2021 goal of $40 billion. And she noted purchases currently are very strong.
Nigh said China is on track to be the largest purchaser of American Ag products.
“Last year, China had pledged to purchase $33 billion in Ag products, and they didn’t quite make it. They purchased $27 billion. But still, that was a record for U.S. Ag exports. So, looking at 2021, with a commitment of $40 billion, that’s a huge increase in exports for U.S. Ag products and would certainly secure China as the largest export destination for U.S. Ag products once again.”
Nigh said at this point, reaching the lofty goals of the Phase One agreement is still possible.
“Looking at current commodity prices and the purchase commitments for new crop commodities and how much further along in exports we are in 2021, relative to where we were in 2020, it seems China might actually make it this year, at least they stand a chance, that U.S. ag exports might actually achieve this huge goal that was laid out in the Phase One agreement,” Nigh continued.
If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail [email protected]