USDA forecasts increased exports of agricultural products
The U.S. Department of Agriculture announced record forecasts of agricultural exports for fiscal 2006 and 2007.
The USDA expects exports to reach a record $68 billion in fiscal 2006, compared to $62.5 billion set in fiscal 2005. The department predicts that U.S. agricultural exports will reach a record $72 billion in fiscal 2007.
“These export numbers clearly illustrate the importance of opening and maintaining export markets for U.S. agricultural products,” said U.S. Agriculture Secretary Mike Johanns in a statement.
The USDA noted that fresh and processed fruit, vegetables and tree nuts will account for about 40 percent of the horticultural export growth in 2007, with gains spread across many products.
Overseas demand for U.S. corn remains strong with the amount used for ethanol production continuing to grow. Reduced South American shipments and rising overseas demand led by China should increase U.S. soybean shipments, and beef exports are expected to rise mostly because of the resumption of sales to Japan, the USDA said.
The USDA credited trade agreements such as the North American Free Trade Agreement for having a large positive impact on trade in agricultural products. In 2005, U.S. agricultural exports to both Canada and Mexico reached $19.6 billion. These markets are expected to reach $23.7 billion in 2007, accounting for one-third of all U.S. agricultural exports.
Imports for fiscal 2007 are forecast at $68.5 billion, up $4 billion from the 2006 estimate of $64.5 billion. The USDA said this creates a $3.5 billion trade surplus for both 2006 and 2007. The largest import gains are forecast for fresh fruits, vegetables and wines.
The USDA’s Economic Research Service, Foreign Agricultural Service and World Agricultural Outlook Board release agricultural forecasts quarterly. The summary and full report are available online at http://www.ers.usda.gov.