Low commodity prices are dealing another blow to the ag trade deficit. USDA is now preparing for the third straight year of losses.
The Department expects the ag trade deficit to hit $42.5 billion when the fiscal year starts October 1st, which is a drop of $4 billion from this year, and marks the third straight year of declines since hitting a record low in 2022. Ag imports are expected to increase by around $8 billion.
The economy is tightening its grip on the ag industry. The Chicago Fed says farmland values are slowing in their district, and credit challenges are starting to appear. Fed policy advisers say repayment rates are also starting to slow.
Despite the challenges, they say farm balance sheets have been strong overall, even with less working capital.
HTS Commodities broker Lewis Williamson joins us to break down the latest USDA Crop Progress Report and how weather and global supply chain issues could influence planting conditions moving forward.
Purdue University’s Dr. Michael Langemeier joins us to break down the latest read on farmer sentiment in the April Ag Economy Barometer, and growing concerns about the impact of global conflict on farm inputs and income.
Federal officials are signaling a more aggressive push on beef packer concentration, but any direct market impact will depend on what the investigation actually finds.
The USDA’s annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.
Total cash receipts from marketings of cattle, calves, hogs, and pigs climbed by 18% in 2025 to $165 billion.
March crush data showed stronger soybean and canola processing, but softer animal fat production.
