Bob Larson Organic Grain Imports and Beginning Farmers
by Bob Larson, click here for bio

Program: The Agribusiness Update
Date: February 23, 2017

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From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.

An economist says organic grain imports are limiting the ability of U.S. farmers to supply the domestic market.

CoBank’s Dan Kowalski tells Brownfield premiums for organic grain are becoming increasingly volatile as organic imports have surged in the last year.

He says when you’re looking at a three-year conversion, knowing that that’s not stable, and thinking five, 10, 15 years down the road, you’re making a major decision on your farm that may not payout.

Kowalski says organic corn imports doubled in 2016 to almost half of the total U.S. supply and 80% of organic soybeans were imported.

**An ag economist says one thing the US ag economy doesn’t need is a contentious trade relationship with any of its key partners.

The University of Missouri’s Scott Brown says last week’s talk of a trade disruption with Mexico creates uncertainty in the US grain market and market opportunities for other countries.

Brown tells Brownfield the US needs access to all available markets to provide price support for livestock producers.

Mexico is the top exporter of US pork and that could be in jeopardy if the relationship continues to decline.

**A specialist in beginning farming says the current farm economy is forcing the next generation of farmers and ranchers to place more emphasis on business.

Jonathan Carter with Farm Credit Mid-America says one of the greatest challenges facing young producers is access to capital and in today’s volatile ag economy a good business plan is crucial.

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