A report on farm exports from the Department of Agriculture projects record exports and profits for American farmers, because of drought in Russia, along with increased Chinese demand.

Food exports are expected to reach a record $126.5 billion by Sept. 30 of next year, with an increase in sales to China of 16 percent. Canada will be the largest importer of American food, with $18 billion. China will be a close second, with $17.5 billion in purchases.

“[The report] demonstrates that the demand for U.S. food and agriculture around the world is stronger than ever,” Agriculture Secretary Tom Vilsack said.

Food is one of the few areas of the economy where the United States has a positive balance of trade, which has been the case since 1959. The U.S. is currently the world’s largest food exporter. However, until this announcement was made food imports had been rising twice as fast as exports, with the U.S. also being the world’s largest importer of food products.

The economic recession hurt consumption of food imports, while exports remained flat until this year. While this is good news, to hope for bad weather in places other than the United States to boost demand feels like playing Russian roulette.

Federal policy must work to ensure that farm exports stay ahead of imports, in order to combat the massive U.S. trade deficit, which current stands at almost $450 billion, according to U.S. Census data.

Net-farm incomes are expected to rise 31 percent in a separate USDA report, after profits fell 28 percent last year. The $81.6 billion would be close to the all-time high of $87.3 billion set in 2004.

Rising farm incomes are expected to buoy other manufacturing sectors, with purchases of farm equipment and machinery, as well as fertilizers and seeds.

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