Indiana Makes $2B Crop Deal

Indiana Makes $2B Crop Deal

Directors of the Indiana Soybean Alliance (ISA) and the Indiana Corn Marketing Council (ICMC) signed an agreement to sell millions of metric tons of American-grown corn and soybeans to two associations from Taiwan during a ceremony at the Senate Chambers of the Indiana Statehouse. Indiana Lt. Gov. Suzanne Crouch signed the agreement as a witness.

In total, the Taiwan Feed Industry Association (TFIA) agreed to buy 5 million metric tons, or approximately 197 million bushels of corn and 500,000 metric tons of corn co-products, such as distillers dried grains with soluables (DDGs), between 2020 and 2021. The total estimated value of this agreement reaches $1.1 billion. Signing the deal with TFIA were ICMC President Mike Beard, a farmer from Frankfort, IN, and ICMC Board Director Joshua Miller, who farms in Madison County, IN.

“International trade is essential to the economic viability of Indiana corn farmers,” Beard said. “We thank the delegation from Taiwan for coming here, recognizing the quality of the crops that we grow and signing this agreement. We hope to work with them for many years to come.”

On the soybean side, the Taiwan Vegetable Oil Manufacturers Association (TVOA) intends to buy between 2.6-2.9 million metric tons, equivalent to 96-97 million bushels, of soybeans in 2020 and 2021. The values of these purchases is estimated to be between $1 billion to $1.1 billion. ISA Vice Chairman David Rodibaugh, who farms near Rensselaer, IN, and ISA Board Director Phil Ramsey of Shelbyville, IN signed the agreement.

“With all of the challenges farmers have faced in 2019, we are very happy to sign this Letter of Intent with this delegation from Taiwan,” Rodibaugh said. “We’ve had a long-standing, good relationship with Taiwan. We intend to keep it strong by providing them a quality product.”

Lt. Gov. Crouch said partnerships like these will benefit all Hoosier farms.

“It is estimated that more than 20 percent of all agricultural production in the U.S. goes to outside markets, like Taiwan,” Lt. Gov. Crouch said. “They continue to be an important trading partner for Indiana, and we appreciate their renewed commitment today to invest in our farmers and agricultural economy.”

Members of the Taiwan trade delegation said they were pleased to keep this flow of U.S. farm products coming into their country. “Due to its high quality produce, the U.S. remains one of Taiwan’s largest sources of agricultural products, supplying more than one-quarter of the country’s major agricultural imports,” said Dr. Junne-Jih Chen, Taiwan Council of Agriculture Deputy Minister. “We are here to demonstrate Taiwan’s continued willingness to purchase U.S. soybeans, and our determination and dedication to promote bilateral agricultural cooperation.”

Following the ceremony at the Statehouse, the delegates from Taiwan toured the offices of the Indiana State Department of Agriculture and the Indianapolis operations for Corteva Agriscience before leaving for Chicago later in the day.

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