Corn, sorghum, soybean and wheat exports are heavily dependent on markets that are headed for population decline over the next 25 years, according to a new report by Terrain.
(AP Photo/Paul Sancya)The report, the second in a series called “The Big Shrink,” says 87% of U.S. sorghum exports and 62% of soybeans and soy products go to countries where population is expected to peak by 2035.
Another 40% of wheat and milled products and 39% of corn and corn products go to countries expected to hit peak populations in 2035.
“In the long term, global population decline for our current export markets will become highly pronounced and create a strong need to diversify both our partnerships and our products,” the report says. “For corn, sorghum, soybean and wheat exports, declining global population trends raise significant risks for the current U.S. export model.”
It’s easy to be “in the know” about what’s happening in Washington, D.C. Sign up for a FREE month of Agri-Pulse news! Simply click here.
By 2050 the vast majority of corn, sorghum, soybean and wheat exports will go to countries that will be in population decline, based on a UN “low variant” forecast that Terrain economists say is the most likely scenario.
“While 2050 may seem to be in the distant future, a 30-year farmland loan today would pay off in 2055,” the report notes.
For more news, go to Agri-Pulse.com.
