U.S. ag shipments overseas are projected to reach $149.5 billion; Dairy exports forecast higher due to continuing strong global demand.
WASHINGTON— 2014 could set a new record for American agricultural exports.
USDA released its Outlook for U.S. Agricultural Trade report May 29, projecting that Fiscal Year 2014 agricultural exports will reach $149.5 billion, an estimated $6.9 billion higher than previous estimates. If realized, that would be a new record for American agricultural exports.
The report indicates that the record growth is due not just to rising prices, which have driven export numbers in the past, but also to an increase in the volume of U.S. agricultural exports, which is projected to increase by 31% between Fiscal Years 2013 and 2014.
Last Fiscal Year, agricultural exports reached $140.9 billion and supported nearly 1 million jobs here at home. Fiscal Years 2009 to 2013 represent the strongest five years in history for agricultural trade, with U.S. agricultural product exports totaling $619 billion over those five years.
USDA raised its fiscal 2014 export forecast for livestock, dairy, and poultry by $600 million to a record $32.2 billion. Increases in dairy and beef more than offset declines in pork and poultry. Dairy products are raised $500 million to $6.8 billion as exports are higher than anticipated due to continuing strong global demand. USDA increased beef exports by $300 million to $5.6 billion on higher prices and slightly larger volumes. Poultry is reduced $100 million to $6.2 billion on weaker shipments of eggs.
Agriculture Secretary Tom Vilsack made the following statement on the report:
"American farmers and ranchers are on track for another year of record exports, which builds on the past five years of the strongest agricultural trade in our history. This report indicates that the volume of U.S. agricultural exports has increased, which demonstrates an increasing global appetite for high-quality, American-grown products.
"USDA will continue to focus its efforts on tapping into new markets for what is grown and made in rural America. Today, only 1% of U.S. companies export, and yet 95% of the world’s consumers live outside the borders of the United States, creating significant opportunities for U.S. food and agriculture. Thanks to resources in the 2014 Farm Bill, USDA is able to continue support for trade promotion and market expansion for U.S. agricultural products overseas—programs that return $35 in economic benefits for every dollar invested. In addition, the Administration's Made in Rural America initiative, launched by President Obama at the 2014 Farm Bill signing, will further these efforts by helping rural businesses and leaders access federal resources to help them connect with new customers and markets abroad.
"Collectively, these efforts will ensure that America's farmers and ranchers are well positioned to capitalize on emerging export markets and continue to drive economic growth in rural America."
Click here for the Outlook for U.S. Agricultural Trade.