WASHINGTON, D.C. (Reuters) – U.S. farmers can expect a record corn crop this year and another huge soybean harvest, with China on track to become the number one export market for U.S. agriculture in the next few years.
At its annual Agricultural Outlook Forum Feb. 18, the United States Department of Agriculture raised its forecast for U.S. farm exports in fiscal 2010 to $100 billion US – up from its November estimate of $98 billion and higher than 2009 trade estimated at $96.6 billion – as world demand begins to recover from recession.
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China’s insatiable demand for soybeans will help it become the third largest market for U.S. food products, passing Japan, according to Jim Miller, USDA’s undersecretary for trade.
“No other country over the past several years has seen as much growth as China,” Miller told the conference. “At the current rate, China could pass Mexico and Canada as our leading market for exports in just a few years.”
The USDA forecast improved farm income in the coming year, largely due to a recovery in livestock prices.
“Now that the U.S. economy has stabilized and is showing signs of improvement, consumers are expected to increase their consumption of animal products, thus firming up market prices and improving the earnings of livestock producers, led by dairy farmers and cattle producers,” USDA said.
Cattle prices are forecast to rise by seven percent and hogs by nine percent. Americans would consume an average 207.9 pounds of meat this year, down one percent.
