Good news for railroads’ grain traffic: The U.S. Department of Agriculture (USDA) now projects the nation’s 2010 corn production will reach a record 13.2 billion bushels, which would represent a 1 percent increase from the previous record of 13 billion bushels set in 2007.

In December, the USDA forecasted annual corn production of 12.9 billion bushels. The agency still projects annual corn exports at 2.1 billion bushels.

The continued use of “scientifically proven” biotechnology applications will help increase corn yields, solidifying the need to continue developing markets for U.S. coarse grains, said Rebecca Fecitt, director of biotechnology programs for the U.S. Grains Council, in a prepared statement.

“We hope to see this upward trend in yields for U.S. corn continue,” she said. “The growing population, especially in developing countries, will demand more meat, milk and eggs as incomes continue to increase.”

Meanwhile, the USDA also projects annual sorghum production at 383 million bushels, 19 million bushels higher than the department’s 2010 forecast released in December. The projection for exports remains unchanged at 140 million bushels.