FarmPolicy

July 21, 2019

ERS: China’s net grain imports surge in 2012 and 2013

ers

From USDA’s Economic Research Service (ERS), May 22- “China’s demand for imported grains, much of it from the United States, has surged recently, with imports of cereal grains rising to 16 million tons in 2012 and 18 million in 2013. Imports in 2013 included 3 million tons of corn and 4 million tons of DDGS (distillers dried grains with solubles; a co-product of U.S. corn ethanol production used for feed) from the United States. In 2013, the United States supplied 70 percent of China’s wheat imports and, for the first time, China became a major market for U.S. sorghum. China’s demand for feed grains appears to have reached a turning point, as a tightening labor supply and rising feed costs force structural change in China’s livestock sector. Labor scarcity, animal disease pressures, and rising living standards are prompting rural households to abandon ‘backyard’ livestock production and shift more production to specialized farm enterprises that rely more heavily on commercial feed. Because of this, China has switched from being a corn exporter to importing 3-5 million tons annually since 2009. Rising feed demand has also pushed up costs and motivated feed mills and livestock producers to explore new feed ingredients like DDGS and sorghum. Find this chart and additional analysis in ‘China in the Next Decade: Rising Meat Demand and Growing Imports of Feed‘ in the April Amber Waves.”

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Farm Bill; Legislative Issues; Climate; Ag Economy; and, Immigration

Farm Bill

Marcia Zarley Taylor reported yesterday at DTN that, “Producers of bulk commodities like corn, soybeans and wheat have made crop insurance a staple of their risk management plans, insuring about 85% of eligible acres nationwide. Unfortunately, specialty crops like fresh sweet corn lag far behind at a mere 21% of planted acres and fresh green beans at 3%. Now the Risk Management Agency hopes attractive new features in a Whole-Farm Revenue Protection policy will aid risk management for diversified specialty crop and livestock producers [related graph].

“‘Crop insurance provides a tremendous safety net for core crops,’ Risk Management Agency Administrator Brandon Willis told DTN. ‘This is just another example if someone wants crop insurance, we have something for them.’

“The new program combines elements of the existing Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) programs targeting farms selling two to five commodities. It also expands eligibility to new counties and states starting in 2015. In 2014, only 802 of those policies had been sold nationwide, a participation rate Willis hopes to significantly improve.”

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