Taiwan Pledges to Buy $576 Million Worth of U.S. Wheat

Taiwan Pledges to Buy $576 Million Worth of U.S. Wheat
Sep 22, 2022

Subscribe to our Newsletters

By Sean Ellis

A Taiwanese trade delegation’s recent trip to Idaho to sign a “letter of intent” to purchase $576 million worth of U.S. wheat over the next two years was much more than just a ceremonial pledge.

Taiwan has signed these intent letters to purchase U.S. wheat for four decades now and even though they aren’t contracts, they have followed through on every one of them. Similarly, U.S. and Idaho wheat farmers have consistently followed through on their pledges to provide that wheat.

Since 1998, Taiwan has purchased 833 million bushels of U.S. wheat worth about $6.4 billion. A good portion of the wheat Taiwan purchases comes from Idaho.

A Taiwanese agricultural trade delegation visits the U.S. every two years to sign an agreement to purchase a certain amount of U.S. wheat. They sign agreements in Washington, D.C., as well as several of the nation’s wheat-producing states.

Idaho wheat industry leaders were on hand Sept. 19 as a Taiwanese trade delegation gathered in Gov. Brad Little’s office to sign the latest agreement for Taiwanese flour millers to purchase $576 million worth of U.S. wheat over the next two years.

While members of the Taiwanese trade team stressed their commitment to continue purchasing U.S. wheat, members of Idaho’s wheat industry likewise reiterated their commitment to keep providing a quality product.

“I want to commit to you that the wheat commission and the farmers in Idaho are committed to maintain this relationship,” said Ririe farmer Clark Hamilton, chairman of the Idaho Wheat Commission.

Hamer wheat farmer Justin Place, who attended the signing and met with TFMA officials and the governor beforehand, said the trade delegation stressed how much they value the consistency of U.S. and Idaho wheat.

“They know they are going to get a quality product coming from us,” said Hamer, secretary-treasurer of the Idaho Grain Producers Association. “It’s always within spec of what they want and they know they can count on it.”

Although the agreements aren’t contracts, they are serious pledges between wheat purchasers and suppliers, said Idaho State Department of Agriculture Director Celia Gould.

“We have done this for a very, very long time and every time, the commitment has been honored, by both sides,” she said. “It’s a sacred document in that regard. That shows the value of this intent agreement.”

Taiwan’s commitment to purchase U.S. wheat provides a level of certainty to many of the state’s grain farmers. Idaho growers produce more than 100 million bushels of wheat annually on about 1.2 million acres and half of the state’s wheat is exported.

Wheat is the state’s No. 2 crop and No. 4 agricultural commodity in terms of total farm-gate receipts, which is what the farmer gets for their commodity.

Wheat is grown in 42 of the state’s 44 commodities and is an important part of most Idaho farmers’ crop rotations.

Click here to see more...

Trending Video

Sow Your Seed

Video: Sow Your Seed

Little Quicks returns!! Comments are ON this time as there are no kids appearing in the video. Hope you all enjoy this tour of the Bar R Ranch during seeding season