By Sarah Gonzalez, Director of Communications and Digital Media
In a recently published report, the U.S. Department of Agriculture (USDA) outlined the diminishing role of the United States in international commodity markets. The Economic Research Service (ERS) report, entitled “A Deeper Look Into the USDA Crop Baseline Projections to 2028, With a Focus on Trade,” is considered a companion piece to the “USDA Agricultural Projections to 2028” report developed in late 2018 and released in March 2019.
“The United States has a long history of efficiently producing grains, oilseeds, cotton, and numerous other crops, which has given it a prominent role in international commodity markets,” the November 2019 report notes. “That role is now diminishing as the United States faces increased export competition from other suppliers.”
ERS said competition from Argentina, Australia, Brazil, India, Russia and Ukraine “will continue in the future, putting pressure on U.S. producers to increase efficiency and continue reducing production costs.”
The report also noted that “while trade tensions with China clearly affected the U.S. export projections, other factors were also at play, including China’s high grain stockpiles and a producer subsidy equivalent to $271 per acre on soybean area, with a smaller subsidy for corn producers….China’s future agricultural and trade policies likely will continue to figure prominently in trade prospects for all exporting countries.”