The USDA announced Thursday that U.S. exporters are reporting large sales of U.S. corn and wheat to China after years of depressed trade. A new report shows export sales of 750,000 metric tons of U.S. corn and 340,000 metric tons of hard red winter wheat to China.
Commodity markets continue to skid and farmers are heading into planting season facing the prospect of a global recession spawned by the coronavirus pandemic that could further depress demand for key ag commodities, including meat and ethanol, economists say.
China is paving the way for an eventual reopening of its market to U.S. dried distillers grains by announcing a list of U.S. companies that are eligible to export the product, according to documents and sources.
The Market Facilitation Program has made a significant difference in liquidity for many farms across the country, including Midwest grain operations as well as cotton and rice growers, but many farms are still likely to end this year with negative ending cash, according to an analysis of the trade assistance.
Amid all the uncertainty farmers are facing this spring, they're now getting hit by a drop in crop insurance price guarantees. In response, Agriculture Secretary Sonny Perdue briefly raised the possibility USDA could allow producers to increase coverage.
Farmers across the Corn Belt and northern Plains along with producers in California, western Texas, and the lower Mississippi River Valley have been the biggest beneficiaries of the Trump administration’s Market Facilitation Program over the past year, according to data obtained by Agri-Pulse.
Farmers are expected to produce record amounts of meat, milk and major crops this year as the agriculture economy rebounds from 2019’s trade and weather disruptions, but exports are forecast to rise relatively modestly in coming months despite the new trade deal with China, USDA says.
President Donald Trump says he wants a trade agreement with India, but suggested Tuesday that a partial pact will come first, followed by a more comprehensive deal later this year or after the election.
China should be buying wheat, corn and rice from the U.S. as a result of the "phase one" trade deal and tariffs will not hamper those sales, Gregg Doud, chief agricultural negotiator with the office of the U.S. Trade Representative said Friday.