United Press International
08-21-07
U.S. agriculture exports may top $78.5B
Business, World
WEST LAFAYETTE, Ind., Aug. 20 (UPI) — U.S. agriculture exports likely will be
$1 billion more than the record $77.5 billion the U.S. government forecast, an
agricultural economist said Monday.
Much of that $1 billion will be wheat, Purdue University economist Phil Abbott
said.
In addition, these new forecasts show lower prices and decreased quantities for
corn than the May forecast, Abbott said.
But the price drop will be short-lived, Abbott said.
The United States will soon have to import corn to accommodate a growing
demand for the crop to make ethanol, the economist said, citing a study done
by Iowa State University's Center for Agriculture and Rural Development.
The study said the United States might eventually use 75 percent of the corn it
produces to make ethanol.
Abbott predicted corn prices would rise drastically, also driving up beef, pork and
poultry prices.
Livestock raised for meat typically eat corn.
The price increases for corn mean a larger portion of consumers' pocket money
will go toward food and fuel, Abbott said.
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