Ag Trade Gap Widens: Deficit is now projected to reach almost $50 billion by end of the fiscal year

The ag trade deficit is projected to rise again this year. New numbers out this week show it has taken big leaps over the last couple of seasons.

USDA shows the ag trade deficit will land in the red at $49.5 billion for this fiscal year, which ends in September, and that is up from $49 billion projected back in February. Last year, the deficit was just shy of $32 billion, and it was $17 billion in 2023. In 2021, the ag trade deficit was just $2 billion.

The updates come as USDA lowered its forecast for exports of livestock products, canceling out increases in oilseeds and grains.

Before leaving her trade mission in Rome this week, Ag Secretary Brooke Rollins took to X, commenting on those new numbers. She says the time has come to shrink that gap and open up new markets around the world. She adds that additional bilateral trade deals are on the horizon for U.S. row croppers. Secretary Rollins left Italy yesterday, but has plans for more trips to India, Vietnam, and Japan next month.

Related Stories
Improving dairy prices could support stronger milk checks later this year.
The sugar policy debate affects prices, trade, and farm stability.
Cattle producers face mounting pressure as U.S.-Mexico trade talks resume, but expanding drought, rising input costs, and policy work to improve the long-term industry outlook.
Lower U.S. ethanol production and stocks may support ethanol prices while strong export demand continues to support ethanol and corn markets.
China’s changing pork demand may limit export growth opportunities.
Farm Bureau Economist Dr. Faith Parum warns farmers to brace for more losses as the war in Iran sends shockwaves through the ag economy and raises input costs even further.

LATEST STORIES BY THIS AUTHOR:

Natalie Roy from AgriSafe Network talks about women’s role in agriculture and the increasing need to address their unique health and safety needs as they form a larger part of the workforce.
In honor of Oral Cancer Awareness Month, Dr. Jeffrey Gold shares how disparities in dental care impact rural Americans and why early detection is important.
While the Farm Bill is top of mind right now, it is far from the only issue getting attention in Washington.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, discusses EPA DEF system changes and what they mean for the supply chain and fuel costs.
JBS says the plant is now operating at full capacity as plant workers return to work.
Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.