b'2021 FULL OF BULLISH OPTIMISM2020 has been quite the year and has set up 2021 to be bullish. Alex MartinJUST AS WE KNOWChristmas comes at the same timeDemand Driversevery year, we know one thing thats consistent, whether orWhen it comes down to it, Basse notes that there are a few not in-person or virtually: the Agricultural Economy Outlookdemand drivers in play helping shift this year to a more bullish For 2021, hosted by Dan Basse, consultant with AgResourceoutlook.Company, is always a highlight at the American Seed TradeThis year, we took on favorable northern hemisphere Association (ASTA) December event.weather, and we really cut production, he says. All of this hap-Like every year, Basse joins ASTA at their annual CSS andpened because of a late summer flash drought. Add that on top Seed Expo 2020 conference, and while he would have preferredof a Black Sea drought, which left world corn and soy exporters the meeting was held in-person, he came bearing good news. with their smallest stock since 2012.Weve got some exciting things to talk about this year,Another major outlook that is driving demand has to do with Basse says. Its been a while since Ive actually had a bullishChinas hog herd.flavor to the agricultural markets. For years, weve talked aboutChinas hog herd has gotten through the African Swine demand drivers which have got our ag markets going. RightFever, and now its back in what we would call a growth phrase, now, we see this Chinese demand coupled with Mother Nature,Basse says. The Chinese are building biosecurity facilities, which which gives us an 18-to-24-month demand driven bull market. is being accelerated by high prices in government subsidies, All that comes down to one exciting piece of news: instead of0% interest loans and the diminishment of backyard production having a bearish market for 2021, agriculture is looking optimistic.facilities. That means it will buy more corn and soybean oil.Im excited to have a little better news for the U.S. farmerOf course, that all means that China is looking at producing and for the global farmer, he says. And for those of you that arerecord amounts of feed with corn and meal, which is a demand selling seed, we are going to need every acre next year in termsdriver for the corn market. of crop production. It should be a good year up and down theWith President-Elect Biden coming into office, Basse says agricultural chain. there will be a push for an environmental legislation. Not only does it look like a good year, Basse notes that itsThis will be good for green fuels or biofuels at least heading into also one of the biggest shifts hes seen. the Farm Bill of 2023, he says. Longer term, the electrification of This is the biggest shift that Ive seen from a supply driventhe transportation system will come into play. In addition, we think bear to a demand driven bull, and its all happening in a matter ofthere will be something in the new farm bill of carbon sequestration, months or weeks, he says.which will be the new environmental green discussion topic.38/ SEEDWORLD.COMJANUARY 2021'