U.S. ethanol exports rose to a peak value of $7.5 billion last year, making a positive contribution to the U.S. trade balance, while also boosting farm incomes.
Renewable Fuels Association Chief Economist, Scott Richman spoke with RFD-TV’s own Suzanne Alexander on current trade conditions, what this means for producers, and what to expect moving forward in 2025.
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While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.