Trade Developments Produce Optimism for Farmers

May 13, 2020

U.S. Grains Council CEO Ryan LeGrand has a firm understanding of COVID-19’s international impact, as he navigates the pandemic to continue to grow markets abroad for American grains. While keeping his employees around the globe safe, LeGrand remains focused on strengthening the momentum established prior to the world turning to address the crisis.

Over the last 10 years, ethanol has been the fastest growing U.S. agricultural export product. Enter COVID-19, and the production of ethanol plummeted stateside in response to declining oil prices and reduced demand around the world. LeGrand expects the historical price relationship between ethanol and oil to resume following the pandemic, and at that point, the benefits of ethanol will once again prevail with international customers.

“We know eventually the price relationship and driving habits will return to normal,” LeGrand said. “At that time, the benefits of ethanol are clear when it comes to greenhouse gases and emissions. It is going to come back, but it may take a while.”

For grain, purchasing activity has ebbed and flowed as buyers look to take advantage of dips in the market. Looking long term, LeGrand believes life will return to near normal, with people resuming the activities they enjoy once they feel safe. For example, people will eventually return to restaurants, where they historically consume more meat products than they do at home. Factors like this will help stabilize global demand for corn and other grains.

A major bright spot for corn farmers today has been China’s involvement in the market. The country has emerged as the fifth largest buyer of American corn over the last year, barely trailing South Korea. China also trails only Mexico in the purchasing of new crop. While LeGrand is cautiously optimistic until shipments arrive, the development is welcomed.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.