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Brazil election could have ripple effects on U.S. agriculture

A presidential election in South America could have major implications for U.S. agriculture.

There are several candidates vying to become Brazil’s next President on October seventh.

U.S. Commodities vice president Jason Roose says his sources tell him Brazilian farmers are favoring 73-year old congressman Jair Bolsonaro.

“He wants less regulation, which is what producers seem to want.  He seems to be wanting to stand for the average guy, not for the big companies.”

He tells Brownfield Brazilian farmers see fewer regulations as an opportunity to clear more land for crop production.

“Even if they increase their production five percent, that’s a dramatic increase.  So what that tells us is that the world carryout is going to continue to get bigger (for) soybeans, and Brazil is going to be a bigger player.”

U.S. farmers are concerned the trade dispute with China will linger, allowing competitors like Brazil to displace U.S. soybean exports long-term.