U.S. Grains Council President and CEO Ken Hobbie says the Export Credit Guarantee Program is one of the best programs the U.S. government has in place for enabling trade. USDA recently announced $3.5 billion in credit guarantees for the 2009 fiscal year. The Grains Council says the guarantees encourage exports to buyers in countries where credit is needed to maintain or increase U.S. sales but financing may not be available without the guarantees from the Commodity Credit Corporation. With the state of global banking industries, Hobbie says overseas customers will need credit.
Not only does this program give overseas customers the opportunity to obtain credit but allows livestock and feed industries to produce food for growing populations. According to Hobbie the program also benefits farmers by serving almost as a guarantee they have buyers for their feed grains. The Export Credit Guarantee Program mandates overseas buyers to purchase needed commodities from the U.S. thus ensuring U.S. farmers and agribusinesses have markets for their barley, corn, sorghum and their co-products.