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.

LATEST STORIES BY THIS AUTHOR:

Shaun Haney, Host of RealAg Radio, discusses President Trump’s move to halt trade talks with Canada and Mexico over a commercial about tariffs launched by the Government of Ontario.
Input costs are top of mind for farmers, as they contribute to higher prices and smaller profits.
The President’s trip to Asia this week follows a trade mission by the Iowa Soybean Association. Farmers say they were reminded that U.S. soybeans have an international reputation that can be easy to take for granted here at home.
She saw him play besides greats like Dolly Parton, Bob Dylan, Conway Twitty, and more.
Farmers who rely on H-2A workers will see a few key changes to speed up the process and make it fairer. On the ground, producers say labor issues create shortfalls in otherwise productive harvests.
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.