Candid Conversation presents a discussion about the topical issues related to Kentucky Farm Bureau (KFB) priorities, the agricultural industry, and rural communities, in a question-and-answer format. In this column, USDA Foreign Agricultural Service Administrator Daniel Whitley discusses the importance of agricultural trade to farm families across Kentucky and the country.

KFB: From an economic perspective, how important are agricultural export dollars to the U.S. ag industry?

Administrator Whitley: Exports are crucial for the U.S. agricultural industry and especially rural communities across the United States. If you look at the data, an estimated 20 percent of U.S. agricultural production is exported to the world and those exports support jobs across the agriculture value chain and support rural economies, including those in Kentucky. Research has also shown that every $1.0 billion of U.S. agricultural exports supports nearly 7,000 jobs and adds $1.07 billion to the economy. Last year, U.S. exports of farm and food products to the world totaled $196 billion, topping the previous record set in 2021 by 11 percent. Those exports supported more than 1.2 million American jobs, including 21,460 jobs in the Bluegrass State. Exports are especially critical for commodities like soybeans –Kentucky’s number one agricultural export – because more than 50 percent of U.S. production is exported.

KFB: Nearly all of the farms in Kentucky are family farms, many of which are smaller operations. How big of a role do those small farms play when it comes to international trade?

Administrator Whitley: First, it is important to note that this is not a unique situation to the state of Kentucky, so Kentucky farmers are not alone when they ask this question. According to USDA’s Economic Research Service, in 2021, family farms accounted for nearly 98 percent of all U.S. farms. And small family farms, those making less than $350,000, accounted for 89 percent of all U.S. farms. That means approximately 9 out of every 10 farm operations in the United States is a small family farm.

In Kentucky, most farms tend to be smaller than the national average. For example, about 91 percent of Kentucky’s approximately 76,000 farms had annual sales of less than $100,000. When it comes to international trade and U.S. agricultural exports, these farms matter, your farm matters – every operation and agribusiness, regardless of size, matters and can have an impact on driving exports of U.S. farm and food products. For example, in 2022, the United States exported $1.5 billion of whiskey, bourbon, and rye to the world, much of this originating in Kentucky.

Also, when you look at the larger picture, the global scale, it’s more than just international trade and business, it’s about food security and helping feed the world. Sadly, according to the recently released Global Report on Food Crises , in 2022 the number of people experiencing acute hunger increased for the fourth year in a row. It is estimated that more than a quarter of a billion people around the world are facing severe hunger. So, when a small family farmer asks themselves, what role can I play, I want to tell them you can play a big role. Whether you grow soybeans, corn, or another commodity, or you raise livestock, you can be part of the solution to improve food security. And that may mean first working with your State Department of Agriculture or with your state or regional commodity or trade association to see what opportunities are available for you to engage in international trade, but please know there is a role for you and it’s an important role.

KFB: How important are those trade dollars to smaller farms and the rural communities in which they are located?

Administrator Whitley: Wow, I cannot express enough just how important trade dollars can be to small farms and to their local, rural communities. Especially when it comes to family farms and smaller businesses, making just one connection and sale to an international buyer could mean the difference between being in the green or in the red for that year, or the difference between whether they can hire another employee to provide someone in their community a much-needed job. I may sound like a broken record, but I cannot say it enough, international trade can play a critical role in helping family farms diversify their revenue, stay in business, and ultimately grow their income.

That’s why USDA is committed to making sure that every farmer, agribusiness, and exporter, regardless of size or type of business, can expand their reach globally by participating in international trade. Throughout my years at USDA’s Foreign Agricultural Service, I have seen many small businesses experience incredible growth once they begin to export their products internationally. For example, there are several small, local distilleries in Kentucky who have found remarkable success exploring export opportunities to markets overseas. We are seeing growing demand for U.S. bourbon in places like Taiwan, Croatia, and other countries, and this is presenting a fantastic opportunity for Kentucky distillers and exporters.

KFB: When you spoke to KFB members earlier this year, you spoke of emerging new markets. What are some of these markets and how important is it to keep exploring new possibilities?

Administrator Whitley: There are always opportunities to continue to expand our agricultural exports. Our agency partners with other U.S. government agencies, foreign governments, international organizations, and U.S. stakeholders to remove barriers to trade, negotiate and enforce trade agreements, and establish international trade rules and standards to ensure U.S. agricultural products are treated fairly in foreign markets. This gives us an opportunity to open new markets and new export opportunities for U.S. producers.

For example, just recently we opened the market in Israel for processed meats, making the United States the first country eligible to export these products to Israel and creating opportunities to claim a share of Israel’s $450 million appetite for these products. We also just recently secured access to Vietnam for U.S. grapefruit. That market could grow to as much as $15 million annually.

While these agriculture and food products may not be significant to Kentucky, they help paint a picture of the type of work we are actively doing to open and grow markets. Just like how every producer and exporter matters, every market matters too, and we want to explore all the possibilities out there. As a state that produces and exports soybeans, corn, and livestock products our work to expand and open new markets throughout the world is important for the economic health of rural Kentucky. FAS continues to work to open markets and reduce barriers in the emerging economies in Southeast Asia, Latin America, and Africa, as these countries increase demand for animal feed and animal protein.

KFB: In a global economy, agricultural trade is competitive, and the U.S. has always been a leader when it comes to ag exports. Is that still the case today and how do we remain at that top spot?

Administrator Whitley: To maintain strong agricultural and food exports for U.S. producers, USDA is committed to ensuring our current export markets continue to remain available for U.S. exporters and that we work on expanding those markets even further. This work allowed U.S. producers to set a record by exporting $196 billion of agricultural products in 2022. We are also expecting a near-record year in 2023, as U.S. agricultural exports are forecast to reach $190 billion this year.

KFB: In your opinion, what do you see as the biggest challenges when it comes to agricultural exports from this country, and what are our biggest opportunities?

I am an optimist, so I like to focus on the opportunities and the potential for growth. One of the biggest opportunities I see today is the introduction of climate-smart and more sustainably produced products into the world market. I would encourage producers and agribusiness in Kentucky and across America to begin looking towards these products and to be prepared for these products’ entry into the marketplace as consumer demand grows.