China’s increased import demand and rising global food prices are fueling a recovery in U.S. agriculture which was hit hard by the U.S. trade war with China, the Financial Times has reported.
Former U.S. President Donald Trump’s “trade war with China left American farmers dependent on government handouts to survive,” said the report on Monday. “But China is now at the heart of a reversal in farmers’ fortunes.”
“Increased demand from China, along with a supply constraints on corn and soybeans caused by a drought in Brazil, have driven a surge in global food prices, providing a further boost for American farmers,” it said.
Citing forecast of the U.S. Department of Agriculture (USDA), the report said the United States is expected to export a record 37.2 billion U.S. dollars worth of farm goods to China in 2021, accounting for 23 percent of total U.S. agricultural exports.
In its Outlook for U.S. Agricultural Trade published in May, the USDA forecast China to remain as the largest market for U.S. agricultural exports in fiscal year 2021, followed by Canada and Mexico.