Rising Imports and Input Costs Pressure U.S. Produce Growers

U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.

fruit it baskets at the farmer's market

Assorted fruits at a farm stand. (Adobe Stock)

Adobe Stock

ATHENS, Ga. (RFD-TV)— U.S. fruit and vegetable growers are facing intensifying pressure from both imports and rising costs, according to University of Georgia economists.

The U.S. Department of Agriculture (USDA) projects 2025 cash receipts for all crops at $236.6 billion, down 2.5 percent from last year, with vegetable revenues expected to decline even as consumer demand remains strong. Imports continue to surge, reaching $49.8 billion in 2024—about one-quarter of all agricultural imports—compared to just $15.9 billion in exports.

Mexico dominates U.S. vegetable imports, while Canada, Peru, and Chile are key fruit suppliers, often shipping into U.S. harvest windows and depressing domestic prices.

At the same time, growers face soaring costs. The USDA estimates that farm production expenses will reach $467 billion in 2025, up 2.6 percent from the previous year and more than 36 percent higher than in 2018.

Fruits and vegetables are labor-intensive, and reliance on the H-2A guest worker program means higher wages, fees, and compliance burdens. In 2024, 44% of growers cited H-2A costs as their top concern, while 54 percent reported labor shortages.

Tony’s Farm-Level Takeaway: U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.

Related Stories
Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.
Hunter Biram, an extension economist with the University of Arkansas, is tracking Mississippi River water levels as grain shippers shift their focus to transportation following the wrap-up of fall harvest.
With feed supplies running tight, producers can tap into some creative options, according to University of Pennsylvania Veterinarian and Professor Dr. Joe Bender.
Firm live cow prices and shifting dairy-side culling suggest cull cow values may stay stronger than usual this winter despite weaker cow beef cutout trends.
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
Retail competition and improved supplies are helping offset food inflation, pushing Thanksgiving meal costs modestly lower despite higher prices for beef, eggs, and dairy.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.
Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
Rising import pressure and tougher export competition are likely to persist into 2026, supporting domestic supplies while capping export growth.
Without additional support, many soybean operations will continue to face financial stress as they prepare for the 2026 crop.
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.