The US Department of Agriculture (USDA) is predicting that agricultural exports from the US will continue to grow this year, while imports from the EU will remain strong.
It also says that per capita income growth in the US is expected to rise to 1.5pc in 2017 due to the anticipation of expansionary fiscal policies, even as the details and the scope of any new policies remain unclear.
The value of US agricultural exports is expected to grow every year for the next 10 fiscal years, after falling in the two most recent years from the record high in 2014. The top US export commodities to the world are bulk items such as soybeans, corn and wheat.
Expected increases in livestock, poultry, and dairy exports are projected to see agricultural exports grow by $2bn, while US agricultural imports in 2017 are forecast to be up $2.0bn from the November forecast.
It goes on to say that beef exports will be boosted by rising demand in Asia.
In relation to the EU, it says that in 2017 imports from the European Union (EU) are expected to be $100m above the previous forecast, at $21.0bn. “These projections reflect the EU’s continued strength in supplying horticultural products to the US,” is says.
With that, the EU is expected to remain the third-largest supplier to the US in the short run.
Meanwhile, it has forecast that US milk production this year will increase by 2.3pc.
Its latest estimates state that the additional production will come from additional cows, as production per cow has been lower than in previous reports.