Source: POLITICO'S MORNING AGRICULTURE, 6/10/19

The U.S. and Mexico on Friday reached a deal to avert new 5 percent tariffs Trump had threatened to impose on all Mexican goods. The resolution is good news for many U.S. farm groups fearful of Mexican retaliation if Trump's tariffs had taken effect today, and it once again boosts the chances of Congress ratifying the new NAFTA deal.

But Trump promised there's even more good news for farmers:"Mexico has agreed to immediately begin buying large quantities of agricultural product from our great patriot farmers!" he tweeted Saturday in all caps.

The Trump administration hasn't shared details of any such agricultural agreement, though Trump on Sunday claimed more information about the broader U.S.-Mexico deal would be announced "at the appropriate time." USDA did not respond to requests for more information about the president's promise of major farm purchases.

Mexico's ambassador to the U.S., Martha Bárcena, did not confirm any deal to buy more U.S. farm goods in an interview Sunday on CBS' Face the Nation. She said only that agricultural trade would increase over time without tariffs in the way and after the new North American trade pact is ratified. The country is already one of the biggest export markets for American farmers and ranchers.

Pressed repeatedly on whether there was a specific commitment to new agricultural purchases or if she was just referring to regular trade between the two countries, Bárcena said, "I'm talking about trade, and I am absolutely certain that the trade in agricultural goods could increase dramatically in the next few months."

One way Mexico could ramp up ag purchases: Ken Smith Ramos, a former Mexican official who was the country's chief trade negotiator on the new NAFTA deal, noted that the Mexican government could increase demand for corn by as much as $2 billion annually by expanding the use of ethanol-blend gasoline into Mexico City, Guadalajara and Monterrey, where it's currently banned. 

A technical regulation is already under consideration that would "create a huge market for ethanol" in Mexico, he added.

Smith Ramos said there's otherwise no clear way for Mexico to engineer higher purchases of U.S. farm goods because it's a free-market economy where private firms make such business decisions.