Brexit Could Bring Market, Policy Impacts for U.S. Grains

Britain’s decision last month to leave the European Union could have both market and trade policy effects on the U.S. grain industry, though the U.S. Grains Council says exactly how the change could impact farmers’ bottom lines is among the many unanswered questions. The EU does not import large volumes of U.S. corn due to trade barriers related to biotechnology. 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. Though the initial grain market impact eased quickly, USGC says follow-on effects on exports could be seen from a stronger U.S. dollar. Markets might also face negative impacts from Brexit on the euro area and, to a lesser extent, the global economy, affecting demand for grain and the meat it produces. However, the largest and longest-term impacts of the Brexit on grains could come from the trade policy arena, not the marketplace.