Strong export demand has provided an important outlet for U.S. farmers, but the new chairman of the U.S. Grains and BioProducts Council says maintaining that momentum will require protecting established customers while continuing to develop new markets.
Nebraska farmer Jay Reiners was elected chairman of the council’s board of directors during its 66th Annual Board of Delegates Meeting in Milwaukee. As he begins his term, Reiners says the ongoing USMCA review is among his top priorities, particularly because of the importance of Mexico to U.S. corn producers.
Mexico purchases more than a billion bushels of U.S. corn, according to Reiners, and he says the country could also become an increasingly important destination for U.S. ethanol. He is hopeful Mexico will move toward an E10 ethanol blend mandate, which could create additional demand for producers across the Corn Belt.
While protecting established North American markets remains important, Reiners says some of the biggest opportunities for future growth are developing across Southeast Asia.
Growing economies and an expanding middle class are increasing demand for higher-quality nutrition, which could translate into additional demand for U.S. feed grains and agricultural products. Reiners says clean-fuel initiatives are also creating opportunities for U.S. ethanol.
He points to the Philippines and Vietnam as markets already showing potential, with Indonesia and Japan offering additional opportunities. Reiners says U.S. bulk commodity exports have been strong and he believes that demand can continue.
Ethanol opportunities are also developing closer to home. Reiners says increasing blend rates in Mexico could significantly expand demand, particularly if ethanol use is extended into the country’s largest cities.
Canada is another market he says the industry cannot afford to overlook. Reiners expects Canada to purchase nearly a billion gallons of ethanol and says a future move toward an E15 mandate could further increase that demand.
However, the export picture is not as strong for every U.S. commodity.
Reiners says sorghum and barley continue to face challenges tied largely to geopolitical and trade issues. An agreement with India could provide additional opportunities for U.S. sorghum, while China remains an unpredictable customer.
Those challenges will also be part of Reiners’ focus during his term as chairman.
He says the council cannot lobby the U.S. government on trade policy, but it can work in overseas markets to promote U.S. agricultural products and communicate directly with foreign government officials and potential customers.
Along with protecting trade relationships with Mexico and Canada, Reiners says rebuilding demand for sorghum and barley needs continued attention, particularly as barley producers struggle with limited export opportunities.
Reiners will lead the U.S. Grains and BioProducts Council’s board of directors over the coming year.
He says the goal will be to protect the major customers already buying U.S. grains and ethanol while continuing to develop opportunities in emerging markets around the world.
