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Grain exports are a bright spot in the current farm economy and can grow even further through outreach to the 95 percent of the world's consumers who live outside U.S. borders, leaders of the U.S. Grains Council said at the at the National Association of Farm Broadcasting (NAFB) convention this week in Kansas City.
As newly-elected national leaders prepare to take office, Chairman Chip Councell, a farmer from Maryland, and President and CEO Tom Sleight told reporters that strong trade policies and robust overseas market development are critical to helping farmers seize these opportunities for growth and greater profitability.
The United States is on track to produce a record amount of corn this year according to U.S. Department of Agriculture (USDA) data out this week, with record exports also expected for feed grains in all forms, a measure that includes corn, sorghum and barley as well as products made with these grains like beef, pork, poultry and ethanol.
U.S. corn exports in September of this year increased 89 percent, to 6.3 million metric tons (248 million bushels), from year ago levels, with shipments to Japan, South Korea, Peru and Taiwan more than doubling. (See more analysis here.)
"Ag exports count for our farmer and agribusiness members and are counted on by customers who rely on the United States for a reliable supply of high-quality commodities and food products. Sales overseas are a bright spot in an otherwise tough ag economy and are something we can all work toward together," Sleight said.
Though it now seems highly unlikely to get a vote in Congress, the Council also voiced support for the pending Trans-Pacific Partnership (TPP) as an opportunity to reduce tariffs, address vexing non-tariff challenges to U.S. market share and build a platform for future multilateral trade pacts.
"Regardless of the future of TPP, after this election cycle that has made so many here and abroad question the United States' commitment to open trade, we urge our leadership to champion trade policies and the farm policy programs that help us develop the markets they offer," he said.
"Doing so will not just help ensure farmer profitability but also help to restore faith in ag trade's contribution to global food security and our country's national security."
The Council is an export market development organization for U.S. corn, sorghum, barley and related products including ethanol and distiller's dried grains with solubles (DDGS), operating programs in more than 50 countries with the support of farmer and agribusiness members as well as funds from the Market Access Program (MAP) and the Foreign Market Development (FMD) program in the 2014 Farm Bill.