MSU Agricultural, Food, and Resource Economics
Exports and imports are strategically important to both the international and domestic common bean markets. Recent trends in international trade of U.S. common beans show that the market for U.S. common beans is undergoing significant changes leading to a decrease in exports and an increase in imports. To examine these trends, trade data were collected with the objective of identifying export and import trends at the market class and commercial partner level. The relationship between trade, production, and consumption trends was also explored. The strong relationship between exports and production brought into the analysis factors determining acreage trends such as crop profitability and the U.S. Farm Bill as a profitability shifter.
During 1994-2003, U.S. common bean exports decreased as a result of navy and pinto bean exports decrease. During the period, U.S. common bean imports significantly increased for all the market classes with Canada accounting for most of the imports and increase. Navy bean export decrease is associated with decreased production in Michigan and eastern North Dakota, which is caused by more attractive soybean profitability and risk. The U.S. Farm Bill has improved soybean return and risk and therefore has boosted the acreage shift from navy bean to soybean production. Pinto bean export decrease is associated with decreased production in Idaho, which is caused by better corn profitability and risk, on which the U.S. Farm Bill has no effect.