Nigh: Export Outlook Good News For Farmers, Ranchers

Last week, the USDA released its export forecast. American Farm Bureau Federation Senior Economist Veronica Nigh said the projections spell good news for farmers and ranchers.

"USDA is projecting another banner year for U.S. ag exports. They’re projecting, in fiscal year ‘22, ag exports will reach a record $183 billion, which is up over 11 billion from fiscal year ‘21. I think it's important to note that fiscal year ‘21 was already a record. So, clearly, as USDA said, the race to $200 billion is on.”

Nigh noted China failed to reach Phase One Agreement purchasing commitments by roughly $13 billion but should remain the top U.S. customer. And she added the forecast suggests higher unit values will offset projections of lower volumes. Nigh says the forecast for record exports comes despite persistent headwinds.

“And one challenge that we're quick to point to and that we're hoping to find legislative solutions for is the congestion that we're seeing at U.S. ports. In our estimation, U.S. ag exports in just May through September of 2021 would have been over $4 billion higher if we'd seen better access to containers and to shipping routes out of the U.S. So, while yes, we're certainly looking at record exports, we're working hard to try to clear out hurdles for U.S. ag exporters so that we can reach our full potential," Nigh continued.

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