Webster County may seem to have little in common with cities in South Korea, but chances are some of the grain crops produced on farms in this West Kentucky area have made their way to overseas ports such as the Port of Gunsan, one of the busiest grain ports on the Korean peninsula.

U.S. agricultural exports have reached all-time highs, and Kentucky farm families are an integral part of the state's overall export efforts.

The latest information available from the USDA indicates that Kentucky ag exports were more than $3.074 billion in 2021. 

The USDA reports the value of sales increased in all of the United States' top 10 agricultural export markets – China, Mexico, Canada, Japan, the European Union, South Korea, Taiwan, the Philippines, Colombia, and Vietnam, with sales in seven of the 10 markets (China, Mexico, Canada, South Korea, Taiwan, the Philippines, and Colombia) setting new records.

In the calendar year 2022, U.S. agriculture exports totaled more than $196 billion, an approximate 39 percent increase since 2019.

From October 2022 to January 2023, the U.S. sent more than 36.6 million metric tons of soybeans worldwide, along with 11.3 million metric tons of corn and 5.5 million metric tons of wheat.

To say agricultural exports are a big deal to farm families across the country is a gross understatement. Markets in other countries are something the ag sector cannot do without. The American Farm Bureau Federation estimates that 20 percent of U.S. farm products by value are exported each year.

Kentucky Farm Bureau First Vice President Eddie Melton grows soybeans, corn, and wheat on his farm in Wester County and understands how critical the state’s agricultural export markets are to the sustainability of his operation and those like it across the state.

“Not only do we rely on our export markets to keep our farms running, but the revenue generated by these exports is incredibly important to rural communities in this state and across the country,” he said. “We may be thousands of miles away from customers throughout different parts of the world but getting our products to a population outside of this country is vital to our economy and the well-being of our foreign neighbors who depend on American agriculture.”

As Congressional leaders begin to debate inclusions in the upcoming farm bill, ag exports are closely connected to portions of this legislation.

AFBF Senior Economist Veronica Nigh said about 20 percent of farming income in the U.S. relies on exports and finding new markets is key to the success of farm families across the country.

“The portion of the world where there's the most growth for agriculture is Southeast Asia,” she said. “It covers about three percent of the earth's total land area and has about 8.5 percent of the world's population.

Nigh added that countries in that area are all growing significantly when you think about their purchasing of power per person and the fact that they tend to like products that come from the United States. It's a win/win situation and an opportunity to grow markets for U.S. ag products.

Despite those opportunities, agriculture is a competitive sport and other countries are wanting a piece of the worldly pie when it comes to exporting agricultural goods.

“When you think about our ag exports, it's hard not to think about China and how much that market has grown over the last 10 years,” Nigh said. “But, the U.S. used to have over 25 percent of the Chinese ag import market and today we're not even their top supplier, Brazil is.”

She emphasized that even with established markets, it’s important to put the nation’s agriculture industry in a position where these countries choose the United States.

One thing that gives American farmers a strategic advantage over countries like Brazil is the better infrastructure system found here.

“The U.S. transportation costs are significantly lower than Brazil's when it comes to getting our products to other countries,” Nigh said. “And because Brazil's cost of production for corn and beans is less than what it is in this country, there's a bit of handwringing, and for good reason, if they ever lower their transportation costs."

One thing that has helped Kentucky agriculture when it comes to ag exports is its proximity to two of the largest river transportation systems in the country. The Ohio River runs the length of the northern boundary of the state and connects with the Mississippi River which flows along the western edge of Kentucky.

Melton said because of this unique position, Kentucky has a strategic advantage when it comes to getting agricultural products to the rest of the world.

"As Kentucky farm families, we have proven that we can produce for the food, fiber, and fuel needs we have in this country and many parts of the world," he said. "But we have to be able to move those agricultural products from the farm to our customers here and abroad. Our strategic location gives us an advantage in doing just that."

Melton added that with a reauthorization of the farm bill on the horizon, advocating for provisions that strengthen our industry here, is more important than ever.

"This world has gotten much smaller when it comes to trade and the competition from other countries continues to grow," he said. "We need to ensure we have as many advantages for our producers as possible, and a solid farm bill will do just that—whether it relates to infrastructure needs, crop insurance, or conservation measures. This legislation not only supports our ag efforts within the boundaries of this state and country, but it strengthens our position as the world leader in agriculture exports.”

Nigh said that the farm bill is critical to the success of our ag exports in that it helps to make our nation’s farm families successful.

“Farmers have to be in business to be in the business of exporting,” she said. “All of the Farm Bill is intended to help enrich the lives of farmers and make sure that they are more able to stay in business and that ultimately makes them more stable and competitive and able to be successful on the export market.”

Melton noted that over the next 25 years, U.S. farmers will have to increase their production exponentially to keep up with ag export demands.

"We've made great strides over the past few decades in producing more with less but to meet the demands that the next generation of farm families will face, we need to remain diligent in our advocacy efforts to ensure the agriculture industry has the support it needs," he said. "Maintaining and finding new ag export markets helps to ensure our success on farms while maintaining our ability to produce the food needed throughout the world now and in the future."