Drought on the Panama Canal continues to slow down global ag trade

Both imports and exports are moving through the Panama Canal at a slower pace as the ag industry continues to deal with drought-related restrictions.

Returning from a recent trip to the Panama Canal, an Indiana farmer says drought in Central America continues to impact global trade. Carey McKibben told Brownfield Ag News that the lower water levels are slowing business with some of the United States’ largest trade partners.

The slowdown is impacting both imports and exports since domestic producers export a lot of corn and soybeans to Peru and Chile. And, in return, those countries send fruits, vegetables, and aquaculture back to the U.S.

This year is the second-driest year on record in the Canal’s history and ultimately became the first year to require trade restrictions due to extremely low water levels.

Currently, only 22 ships are allowed to pass through the waterway each day. The Panama Canal Authority is set to increase that number to 24 on January 16 if weather conditions are favorable.

Related Stories
Strong corn exports offer support, while soybeans and wheat remain weighed down by ample global supplies, according to the USDA’s latest WASDE report for February.
Higher livestock prices reflect resilient demand, even as disease and herd shifts reshape 2026 supply expectations.
RealAg Radio host Sean Haney outlines the Trump Administration’s current trade priorities and what meaningful market expansion looks like for farmers.
Dr. Kelly Bruns from the Nebraska College of Technical Agriculture discusses how the college prepares students for careers in agriculture.
USDA’s February WASDE report, analysts expect minimal price movement as grain stocks remain steady. Traders weigh renewed Chinese soybean purchases, South American weather, acreage shifts, and upcoming USMCA trade talks.
RFD NEWS Correspondent Frank McCaffrey was in Mission, Texas, where state and federal officials addressed growers and producers at a round table event hosted at a citrus grower’s facility. He shows us how welcome news was all around.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Tennessee FFA officers join us in the RFD-TV Studios to showcase student leadership and inspire support for agricultural education on Give FFA Day 2026.
National FFA President Trey Myers shares the significance of Give FFA Day, its role in supporting student growth, and how communities can join the celebration to make a difference for future agricultural leaders.
The Ranger Road Fire is fully contained after burning nearly 300,000 acres. Ranchers face significant cattle and fence losses, with recovery efforts underway.
National FFA Organization CEO Scott Stump shares the importance of Give FFA Day, how contributions support students, and why today is an opportunity for everyone to help invest in the future of agriculture.
East Tennessee Children’s Hospital officially becomes Dolly Parton Children’s Hospital, marking a new era of compassionate, world-class pediatric care in Tennessee.
USDA Farmer Bridge Assistance payments could begin this weekend as producers face tight margins, shifting acreage expectations, cattle herd contraction, and growing pressure for a stronger farm safety net.