Taiwan wheat deal
Taiwan’s recent pledge to buy $1.2 billion worth of U.S. wheat over the next three years, much of it from Idaho, was more than just a ceremonial commitment.
This pledge happens every three years or so and the agreements aren’t contracts. But it’s about as close as you can get to a promise, from both sides.
Taiwan wants a consistent, reliable supply of high-quality wheat and promises to pay a premium for it, and U.S. and Idaho farmers promise to supply it to them.
The agreements could probably best be referred to as letters of intent, and for four decades, both sides have followed through.
Just since 1998, Taiwan has purchased more than 1 billion bushels of U.S. wheat worth more than $8 billion, according to the Idaho Wheat Commission.
“We have a long-standing relationship with Taiwan,” said IWC Executive Director Britany Hurst Marchant. “This reaffirms that relationship between both Taiwan and Idaho wheat farmers.”
From the farmers’ side, she said, “it’s that reassurance to Taiwan that we will continue to provide them with a consistent, high-quality supply of wheat.”
On Sept. 24, officials from Idaho and the Taiwan Flour Mills Association signed a three-year deal for U.S. wheat exports to Taiwan.
The TFMA imports wheat for all 20 of Taiwan’s flour mills.
An agricultural trade delegation from Taiwan visits the U.S. every three years to sign the agreement in Washington, D.C, as well as several wheat-producing states.
Taiwan is the sixth largest market for U.S. wheat and it’s a very important market for Idaho, which typically ranks about No. 5 in the U.S. for total wheat production and exports roughly 50 percent of its wheat.
With exports being so important to the U.S. and Idaho wheat industry, “Without loyal customers like Taiwan … there’s no way we’d survive,” said Rockland farmer and Idaho Wheat Commission Chairman Cory Kress. “We’re grateful for this pledge. It’s super important to us.”
“We really need markets, like Taiwan, to buy what we produce,” said Burley farmer Wayne Hurst, former president of the National Association of Wheat Growers. “We can’t eat all the wheat we grow in Idaho. We don’t want to try.”
Idaho farmers typically produce about 100 million bushels of wheat on about 1.2 million acres.
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.
The Taiwan deal is estimated to amount to about $1.2 billion worth of U.S. wheat purchases by Taiwan. A good portion of that wheat will come from Idaho.
According to the IWC, about 8 percent of Idaho wheat – about 8 million bushels – is sold annually to the TFMA and about 200 Idaho farms are in business because of Taiwan’s annual purchases of wheat.
Taiwan is also an important export market for other U.S. and Idaho agricultural products, including beef, processed potatoes, dairy, hay, dried peas, chickpeas, animal feed, hides and fertilizer.
That nation imported almost $3.7 billion worth of ag products from the United States in 2024, ranking that nation as the eighth largest market for American agricultural products.
During the signing ceremony, Idaho Lt. Gov. Scott Bedke said the TFMA represents “a long-standing, very vibrant relationship that the state of Idaho has had with Taiwan for over 40 years. They are a very important part of our agricultural markets here….”
TFMA Chairman Michael Chang said it’s not by accident that U.S. wheat has an 80 percent share of the market in Taiwan.
“It’s because U.S. wheat has always consistently provided a very good quality,” he said.
During past signings, Taiwanese officials have said the U.S. wheat industry is very transparent about quality and pricing.
Hurst said that a few years ago he asked members of a Taiwanese trade delegation why they buy U.S. and Idaho wheat when they potentially could buy it cheaper elsewhere.
“They said they like our quality, our consistency and our reliability … and they’re willing to pay a premium for our wheat,” he said.
“This agreement is a major win for Idaho agriculture and a testament to the strong partnership we share with Taiwan,” said Idaho State Department of Agriculture Director Chanel Tewalt. “Taiwan has long been one of Idaho’s most important and reliable trade partners, and their continued trust in the quality of our wheat is a point of pride for our growers and our state.”
