Looming USA Agricultural Export Market Crisis

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Basics

  • Largely a collection of Op-Eds, so ye be warned here lies Editorialism etc
  • TLDR:
    • Corn ( Maize ) and Soybeans are the main Cash Crops of the USA
    • Much of this market was for export
    • Due to Trade Wars the export market is crashing
    • Due to the synergistic Crop Rotation of both reducing Nitrogen Fertilizer needs and SOME pest pressure, switching to an all Maize model may drastically impact Soil Health / Fertilizer Consumption / Surges in Pests etc
    • Intersection with Markets for Animal Feed due to Trade Wars on Livestock / Animal Products are also making a Meta-Crisis of sorts
    • Energy Prices impacting the Corn Ethanol Market

Potential "Offramps"

End in Trade War / Return to Pre-Trade War Status Quo

  • "Easiest" but least likely (Due to Political Needs, and how much of the world may have "Moved On"

Alternative Uses

  • While crashing energy prices don't help (Expensive Gas makes Biofuel "Cheaper" etc), diversion from overseas markets/Industrial Animal Agriculture to Biomass / Bio-Materials may be possible
  • Main issue is Large Scale Infrastructure Investment etc would need to be done (For Factories etc)
  • Also even if there is a Source at point "A" and a Market at point "B", getting the grain Economically and On-Time from point A to Point B is a whole other aspect
  • SUPPOSEDLY due to being Export Oriented, in a similar manner to Just in Time Manufacturing leaving the global supply chain vulnerable during COVID-19 era disruptions, the USA Market may be in a similar situation where it relied on Ships/Freight Trains etc as storage, thus in the meantime there may be gaps in storage capapcity

Relevant Equipment

Internal Links

External Links