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
Farmer Ed Bell shares how AGRAbility helped him return to his family’s strawberry farm and inspire resilience, legacy, and hope in rural life.
Weskan Grain CEO Will Bramblett discusses the antitrust lawsuit filed by grain farmers and agribusinesses, and its potential implications on rail competition and market access.
Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.
Adequate transportation capacity exists, but fuel costs and soft river demand could widen basis risk.
Lower oil prices may trim input costs but pressure biofuel demand.
Tight storage could widen basis and limit marketing flexibility.

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:

Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Refining shifts could influence fuel and input costs.
Energy shifts influence diesel and fertilizer costs.
ASFMRA’s Craig Thompson shares insights for American farmers who are navigating farmland markets amid agricultural uncertainty.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.