USDA Projects New Export Record

Look for exports to top $79 billion for fiscal year 2007, and go higher in the next trading year.

Published on: Sep 3, 2007

When the ag fiscal year ends Sept. 30 it looks like U.S. ag exports will have set another record, according to a press statement issued by USDA. For Fiscal Year 2007, ag exports will top a record $79 billion with projections for FY2008 to top $83.5 billion. The sales record is being set across all major agricultural product groups.

The forecasts top the old record of $68.5 billion set last year. Secretary of Agriculture Mike Johanns notes that these export numbers show high demand for U.S. ag products worldwide. "They also reflect tight world markets for grains and oilseeds," he notes.

USDA is projecting corn exports to top $600 million in the next fiscal year thanks to a record crop, strong foreign demand and reduced competition. China's demand for soybeans and cotton remains strong, while developments in the biodiesel market will raise Europe's demand for soybeans as well. Meanwhile, horticulture exports will rise by $800 million, supported by strong demand and a competitive dollar. Beef exports are expected to increase $400 million due to larger volume.

Johanns, long a trade advocate, adds that trade agreements have a "huge impact." He notes that "if Congress ratifies the recently signed free trade agreements with Colombia, Korea, Panama and Peru, our producers will have increased access to some extremely important markets."

The table below shows a rundown on ag exports and imports.

U.S. Agricultural trade, fiscal years 2003-2008, year ending Sept. 30

 

Forecast

Item

2003

2004

2005

2006

Fiscal 2007

Fiscal 2008

 

May

Aug

Aug

$ Billion

Exports

56.0

62.4

62.5

68.6

77.5

79.0

83.5

Imports

45.7

52.7

57.7

64.0

70.5

70.5

75.0

Balance

10.3

9.7

4.8

4.6

7.0

8.5

8.5

Reflects forecasts in the Aug. 10, 2007, World Agricultural Supply and Demand Estimates report.

Source: Compiled by USDA using data from Census Bureau, U.S. Dept. of Commerce