Despite all the hue and cry about food shortages, the United States is exporting more corn than ever before.
According to the latest USDA forecast, U.S. agricultural exports are expected to reach a record $108.5 billion for fiscal year 2008. The new numbers represent a $7.5 billion increase from February’s previous record forecast and $26.5 billion above the final 2007 exports. Grains and animal products account for two-thirds of the export gains.
According to Agriculture Secretary Ed Schafer, “America’s increased export volume in bulk commodities like corn, other animal feeds and soybeans make agriculture the bright spot in the overall balance of trade. U.S. producers are on track to export a record 63 million tons of corn, and set new export volume and value records for pork. Export volumes and values are also up for many horticultural products with sales growth to Canada and the European Union being exceptionally strong.”
One of the biggest export market growth areas is China. U.S. exports to China are forecast to reach a record $10.5 billion, up almost $3.4 billion from 2007 levels.
China will be a topic at the Corn Utilization and Technology Conference this week. Scott Rozelle, a Helen Farnsworth Endowed Professor at Stanford University, will speak about “Corn in China in This Time of Global Uncertainty.”
Rozelle’s presentation will cover China’s trade policy, corn research and development, supply and demand, and more. “As incomes grow, as migrations happen, the demand for meat and other livestock product rises,” Rozelle said. “China just cannot produce the amount of feed it needs, so in the long term China is going to be a really good market.”
Point here is that U.S. corn growers continue to meet the demands of producing food for the world.
Agriculture Secretary Ed Schafer will present a three pronged strategy to deal with rising food prices, climate change and energy security when he travels to Rome next week for the conference on World Food Security being held by the Food and Agriculture Organization (FAO) of the United Nations.
Schafer says the strategy is basically to “provide food and other support to people who are hungry now, direct development assistance to those countries best able to rapidly increase the production of key food staples that can help feed the hungry, and encourage action to address multilateral and country-specific policies that prevent access to food and the technologies that produce food.”
To try and encourage greater use of biotechnology, Schafer and Director of U.S. Foreign Assistance Henrietta Fore will host a side event focused on new technologies to showcase developing countries that have moved forward with public investment in adoption of bioengineered products. “Bioengineered crops are one of many situations that need to take place for increasing yields around the country if we’re going to meet the demands of increased consumption,” Schafer says.
Biofuels will most definitely be on the plate at the World Food conference and Schafer is prepared to defend US ethanol production policy. “I would point out that in the United States and in other countries as well, all ethanol production specifically has come from increased yields in the corn crops,” Schafer said. “Our export markets are up in corn out of the United States. The yield increases are taking care of it, and certainly the benefits derived are much more than the 2 to 3 percent that is contributing to the rising inflation in food costs internationally. We think it’s an important initiative, and while people do have some concern I think we can point out the facts here, not the emotions but the facts, that this is not distorting the global price of food. And it’s an important direction we need to go.”
The Japanese are getting into soul food these days.
According to the U.S. Grains Council, cornbread has become a hot new food trend in Japan among professional and home bakers. In an attempt to ride the wave of cornbread’s popularity in the country, the Council’s Corn Food Promotion Program has initiated a Web site dedicated to informing Japanese customers about the food. The idea is to introduce new corn foods which allow Japanese corn millers to remain in the food industry despite a shrinking market. Decreasing corn grit consumption in the beer and snack industries have contributed to this market change.
The newly launched Web site www.cornbread.jp, which is all in Japanese except for the word “cornbread”, uses historical stories, movies and books to advertise the product. The Web site will also include cornbread recipes targeting a Japanese audience. For example, the site’s recipes use conventional milk or plain yogurt as a substitute for buttermilk, an essential ingredient for baking southern-style cornbread but a product not available in Japan. The site is expected to grow as more information, recipes and links are added.
The Senate is expected to follow the lead of the House Thursday and override the presidential veto of the Water Resources Development Act, better known as WRDA. The House vote on Tuesday was 361-54 with 18 members absent, well over the two-thirds needed for the override.
Late Wednesday, the Senate was debating the measure with most speaking in favor of the override. President Bush vetoed the $23 billion bill, which includes a variety of water-related projects around the nation, including the modernization of seven locks along the Upper Mississippi and Illinois River.
“This is great! We have worked so hard and so long to get improvements on the Upper Mississippi River System authorized,” said Ron Litterer, president of the National Corn Growers Association.
Litterer says the project to upgrade the lock system will improve delivery of crops to the global marketplace. More than half of all grain exports are shipped by way of inland waterways, accounting for $8.5 billion in exports.
The bill will also provide funding for environmental restoration, flood control, port modernization, irrigation and hurricane protection.
If the Senate does vote in favor of the veto override, as expected, it will be the first time that has happened during the Bush presidency. The Senate originally passed WRDA by an 81-12 margin.
The majority of U.S. agricultural organizations are strongly in favor of free trade, whether it be global or bilateral. The “level playing field” phrase is most often used as the reason for that support. Exports are a significant part of the agricultural economy of our nation, and therefore of the economy as a whole. According to USDA, agricultural exports hit a record $79 billion this year. Next year that number is projected to be $83 billion.
“First, U.S. agricultural exports currently face barriers to entering these markets. Although we allow more than 99 percent of the agricultural exports from Colombia, Panama and Peru to enter our market in the U.S. duty free, we have virtually no duty free access in their markets…
Secondly, not signing these agreements does not mean that we can maintain the status quo going forward. As other nations put free trade agreements in place, we stand simply to lose market share….
The third and final reason… is simple. It’s a simple message because free trade is simply a good thing. It does level the playing field, creates jobs, it allows for fair competition for U.S. producers, and it does capitalize on the strengths of the parties that are involved.”
American Farm Bureau Federation President Bob Stallman noted that all of agriculture will see benefits from free trade with just the Peru, Colombia and Panama Trade Promotion Agreements. “These three agreements would increase U.S. agricultural trade by almost $1.5 billion once fully implemented,” said Stallman, “These gains would be spread across all sectors of U.S. agriculture, from livestock to fiber and from grains and oilseeds to fruits and vegetables.”
Former AFBF president Dean Kleckner says the benefit is doubled with Korea. “If Congress were to approve the four free-trade agreements currently on the table, these deals would generate more than $3 billion in additional sales for American farmers each year.”
Kleckner adds, “These trade agreements make economic sense. They’re worth enduring a little political aggravation.”
According to the latest USDA forecast, U.S. agricultural exports are expected to reach a record $108.5 billion for fiscal year 2008. The new numbers represent a $7.5 billion increase from February’s previous record forecast and $26.5 billion above the final 2007 exports. Grains and animal products account for two-thirds of the export gains.
To try and encourage greater use of biotechnology, Schafer and Director of U.S. Foreign Assistance Henrietta Fore will host a side event focused on new technologies to showcase developing countries that have moved forward with public investment in adoption of bioengineered products. “Bioengineered crops are one of many situations that need to take place for increasing yields around the country if we’re going to meet the demands of increased consumption,” Schafer says.
According to the 
The newly launched Web site 
Late Wednesday, the Senate was debating the measure with most speaking in favor of the override. President Bush vetoed the $23 billion bill, which includes a variety of water-related projects around the nation, including the modernization of seven locks along the Upper Mississippi and Illinois River.
“First, U.S. agricultural exports currently face barriers to entering these markets. Although we allow more than 99 percent of the agricultural exports from Colombia, Panama and Peru to enter our market in the U.S. duty free, we have virtually no duty free access in their markets…