US Ground Beef Import Boosts Farmers as Brazil's Corn Exports Decline

President Trump has announced that the US will allow the tariff-free import of 300,000 metric tons of ground beef for 90 days. This move is expected to benefit American farmers as Brazil's role in the global corn market continues to decline.

Brazil's ethanol industry is expanding rapidly, driven by significant Chinese investment. According to Bryan Irey, Regional Manager at Crossroads Co-op, China has invested heavily in Brazilian ethanol infrastructure because it reduces shipping costs and complexity. By producing ethanol in Brazil, China can send a single vessel of ethanol to the US instead of three vessels of corn.

Irey believes that this shift will ultimately benefit American farmers as Brazil's corn exports decline and Ukraine's ability to export corn to the US is limited. While it may take a couple of years for this new infrastructure to come online, Irey predicts that six-dollar corn could return in the future.