American Soybean Association (ASA) First Vice President Mike Yost said today, "The projected record 1998 U.S. soybean crop sends a strong message to Washington that U.S. farmers must have aggressive trade and export policies to ensure agriculture’s future profitability." According to Yost, "There are important international issues facing the Administration and Congress right now, and their resolution will be critical in determining the viability of our market-based farm program."

Yost’s remarks followed release this week of USDA’s Prospective Plantings report, projecting soybean plantings at 72.0 million acres, 2 percent above last year’s level. If realized, this would be the largest planted area for soybeans on record.

"Congress must reconsider the Administration’s request for broad-based Fast Track trade negotiating authority as soon as possible. Without Fast Track, the U.S. is being left out of numerous trade deals between our competitors and our customers," Yost added. "More than half the value of our $18 billion crop is exported annually and that contributes positively to the United States’ balance of trade. ASA also is urging that funding for the Foreign Market Development (FMD) Cooperator Program be maintained at the current year level of $32 million." ASA invests FMD funds and producer checkoff dollars collected from farmers to promote U.S. soybean exports in nearly 100 countries worldwide.

"In addition, congress and the Administration must continue to insist that regulations governing trade in biotech crops and products be based on sound science. Any import restrictions or labeling requirements based on the process rather than product characteristics can lead to crop segregation, and segregation would disrupt the U.S. and world commodity marketing system," Yost said. Industry sources estimate that 40 percent of the soybean seedstock planted in the U.S. this year will be derived through biotechnology.

"Congress should immediately approve the Administration’s request for $18.0 billion in funding for the International Monetary Fund. This amount includes $14.5 billion to increase the IMF’s quota and $3.5 billion to stabilize Asian economies," Yost said. Asian countries are major importers of U.S. soybeans and soybean products, and it is important to restore the buying power of their currencies.

"ASA is also asking the Administration to continue to insist that China comply with basic World Trade Agreement requirements regarding state trading and transparency in the current accession negotiations. These talks offer U.S. producers and processors a one-time opportunity to increase access to the largest potential world market for soybeans and products. We are also recommending that China’s Most Favored Nation trading status should be renewed again in 1998," Yost added.

On top of the large projected U.S. crop are projections that South America’s soybean crop, which is being harvested right now, will reach a record 51.6 million metric tons (1,896 million bushels). That represents an increase of 11.3 mmt (415 mil. bu.) or 28 percent above last year’s South American crop of 40.3 mmt (1,481 mil. bu.). This increased level of South American production represents an amount that is greater than the total amount of whole soybeans exported last year by the U.S. to the European Union, the United States’ number one market area for whole soybean exports.

Soybeans were planted on 26 percent of all U.S. crop acres in 1997. USDA estimates that the value of 1997 U.S. soybean and soybean product exports will exceed $11 billion, the highest value of any agricultural product category, accounting for nearly 19 percent of total U.S. agricultural exports that are projected to reach $58.5 billion. ASA is a national, not-for-profit, grassroots membership organization with 31,500 members, affiliate offices in 26 states, and overseas marketing offices in 13 countries. The Association develops and implements policies to increase the profitability of its members and the entire soybean industry.