On February 15, USDA released its USDA Agricultural Projections to 2027 report. These projections are the department’s official long run representative scenarios for the agricultural sector for the next 10 years, and are developed through a consensus of involved USDA agencies.
USDA projects a strong global demand for soybeans that is expected to encourage U.S. soybean plantings to exceed corn acreage, for the first time ever. However, competition from South America, primarily Brazil, the world’s leading exporter, is projected to lead to a reduced U.S. share of global soybean trade. While falling corn production is projected to characterize the first few years of the forecast period, corn production increases are projected to occur in the latter years.
The United States is projected to remain the world’s largest corn exporter, over the forecast period. U.S. wheat exports are projected to decline in the short-run, followed by a period of slow volume growth. If realized, the projections could impact the demand for grain transportation.
