Export demand for United States farm commodities is predicted to decrease.
A Purdue University survey completed last month predicted less demand for overseas sales compared to previous years.
Exports reached a record $196.4 billion in fiscal 2022, a three-fold increase in a quarter-century. One-fifth of U.S. agricultural production is sold overseas.
“Producers’ confidence in U.S. agriculture’s exporting prowess has weakened considerably,” according to agricultural economist James Mintert.
In early 2020, 72-percent of farmers said they expected exports to increase over the next five years.
“Since then, farmers looking for exports to grow over time has dipped to 33-percent in the recent survey,” Mintert said. Eighteen percent of the respondents predicted exports will decline.
The United States Department of Agriculture (USDA) estimates that exports will retreat to $184.5 billion this year.
That’s down 6-percent, due to softer commodity prices and smaller tonnage but still the second-highest sales tally ever.
Long-term, USDA projects the decline will continue through 2026, due to global economic slowdown, interest rates, and a strong dollar.
Exports would decline across the board, with grains and soybeans hit the hardest.
About 10-percrent of producers said they have discussed leasing their land for solar energy production, Mintert said.
“The survey suggests companies have started to increase lease rates they are willing to pay.”
Among producers who have investigated a lease, 48-percnet said they were offered $1,000 or more per acre. In November 2021, 34-percent said the offer was $1,000 or more.
Producers reported little change in the quality of internet service on their farms in the past year.
Some 30-percent rated service quality as high, 39 said moderate, 21-percent said poor, and 10-percent said they had no service.
A year ago, the ratings were 30-percent high, 42-percent moderate, 16-percent poor, and 12-percent none.
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