Brexit Could Bring Market, Policy Impacts For US Grains
The largest and longest-term impacts of the Brexit on grains could come from the trade policy arena, not the marketplace
Britain’s stunning decision last week to leave the European Union (EU) could have both market and trade policy effects on the U.S. grain industry, though exactly how this critical geo-political change could impact farmers' bottom lines is among the many questions about what has been dubbed "the messy divorce."
The EU does not import large volumes of U.S. corn due to trade barriers related to biotechnology, which constrain imports for corn co-products as well. Overall, the total value of all types of U.S. feed grain and related products that were exported in the 2014/2015 marketing year was about $745 million, compared to $6.6 billion with Mexico, $5.6 billion with Japan and $35 billion worldwide. To read more click here.