John Block Reports from Washington

For years and years we have bragged about the surplus of farm exports over imports. In fact 20 years ago we exported twice as much food as we imported and helped to keep the trade deficit from getting any worse. Would you believe that in June and August of this year our farm trade surplus melted away? We'll have a surplus for the year --- However, it is likely that in 1 or 2 years farm sales will be in deficit.

It's not that our exports have collapsed. In fact, we are exporting 50% more than in the early 80's and that's a $20 billion increase. What has happened is our appetite everything foreign (including food) is wild. We want more foreign wine (maybe not French), probably Australian and Italian. We expect grapes, tomatoes and all kinds of vegetables from Chile and Mexico because food shoppers want choice. At the same time Russia is exporting their wheat and not buying ours. In the early 80's the Soviet Union made our wheat market, our beef exports are suffering because of 1 mad cow.

Now here is the bottom line. According to the Wall Street Journal the shrieking farm trade surplus could make it harder for the farm lobby to protect farm subsidies when we write the next farm bill, but I don't think we should despair. We are still the biggest farm exporter in the world.

Farm exporters have been trending higher since the 1970's and are likely to continue on the upward trail because $60 billion of exports is not to be taken lightly. The global demand for food is very powerful. There is a market for Russian wheat, Brazilian soybeans, and our products too.

Until next week, I am John Block from Washington.