According to the Hudson Institute, world population exceeded 5.8 billion in 1996 and is expected to peak at 8.5 billion around the year 2035. The majority of the world's population growth is in developing countries and will occur at income levels that can generate significant gains in demand for agricultural products as diets diversify and include more meats and other higher valued products. We have the ability in the United States to grow the grain to feed the world. USDA predicts the 1998 corn acreage planted to be 80.8 million acres, up from the 1997 acreage of 80.2 million acres. The 1998 soybean acreage is estimated at 72 million acres, up from 70.9 million acres in 1997.
Yields are on the rise too.
World trade in grains, led by coarse grains, is projected to grow the fastest among bulk commodities. USDA also indicates that in the case of corn specifically, exports are projected to increase more than the gains in total domestic use. In the year 2000, corn exports should match the previous record high of 2.4 billion bushels and then surpass 3 billion bushels by 2007. A key factor underpinning this growth is the assumption that China develops into a significant net importer of corn. In contrast to wheat and soybeans where there are more alternative supplies, the United States will emerge as the major source to meet the world's growing import demand for corn.