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
Lower shipping costs alone will not restore export competitiveness.
Rising fuel costs will soon increase grain transportation expenses.
The USDA’s upcoming reports will drop on Tuesday afternoon, giving the trade real results on acreage shifts, drought concerns, and ongoing trade tensions, adding uncertainty for U.S. farmers.
South Texas farmers face worsening drought as Mexico falls short on water payments, leaving producers struggling for irrigation under the 1944 treaty.
Expanded access could boost demand for U.S. exports.
Exports depend more on demand than currency shifts.

LATEST STORIES BY THIS AUTHOR:

FarmHER Kait Thornton joined us on Thursday on the Market Day Report to talk about the podcast episode, her family orchard’s 100th anniversary + more!
Tennessee FarmHER Bridget Bryant’s porch garden evolves into a sprawling community outreach project that provides fresh produce to those in need and teaches urban kids how to grow their own food.
“We’re living in a moment of massive change—in agriculture, in media, and in leadership . . .”
Dr. Jeffrey Gold, President of the University of Nebraska, joins us to discuss the signs and symptoms of cataracts, as well as the available treatment options.
Roger McEowen with the Washburn School of Law joins us now with the highlights.
The Arkansas Farm Bureau offers a ‘Beef in the Classroom’ grant to assist with ag education. Applications for that program open in August.