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
USMEF CEO Dan Halstrom joined us on Monday’s Market Day Report for his analysis on the U.S.-Taiwan trade agreement, which includes big bucks for U.S. Beef.
Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
Fewer cattle on feed suggest smaller slaughter numbers this winter, which could support strong prices if beef demand holds firm.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
RFD-TV Markets Expert Tony St. James breaks down the state of agribusiness and harvest progress across each region of the United States for the week of Monday, September 22, 2025.
With the latest detection just across the border, animal health officials on both sides are intensifying efforts to contain the outbreak before it spreads further north.

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:

Raulston Acres Christmas Tree Farm in Rock Springs, Ga., has been in the same family for three generations.
Reed Marcum started hosting a toy drive in 2015. Since then, he has distributed thousands of toys across his home state of Oklahoma and in Texas and Arkansas. Now serving in the Army, Reed’s family and local 4-H chapter are running the event.
RFD-TV Farm Legal and Tax Expert Roger McEowen explains the basics of Low-Risk Credit in Farming, and how an understanding of the farm credit landscape lets producers tactfully approach debt.
Mike Steenhoek, with the Soy Transportation Commission, shares his outlook on current grain stocks and transportation lines amid bumper crops filling bins across the United States.
Renewable Fuels Association President & CEO Geoff Cooper explains their call for reciprocal duties on Chinese ag imports after China failed to meet past promises on ethanol production.
American soybean and corn leaders, along with Canada’s AgriFood sector, testified before the U.S. Trade Representative’s Office in support of the trade pact between the U.S., Mexico, and Canada.