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.
Lower freight costs helped sustain export demand amid a challenging pricing environment.
February 10, 2026 06:00 AM
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OOIDA’s Lewie Pugh discusses the EPA’s new Right to Repair guidance and other regulatory developments impacting the trucking and agriculture industries.
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At CattleCon 2026 in Nashville, RealAg Radio’s Shaun Haney discusses profitability, consumer demand, and how the integrated U.S.–Canada beef supply chain impacts cattle producers across North America.
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The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
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The U.S. trade deal with Argentina creates new export opportunities for U.S. livestock and crop producers but also raises competitive concerns.
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More flexible export financing could strengthen demand in emerging markets and support higher U.S. agricultural exports.
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