The ag trade deficit may set yet another record; ag economy may be softening

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.

Related Stories
RealAg Radio’s Shaun Haney discusses the DOJ investigation into U.S. beef packers, concerns about cattle pricing, and ongoing trade and animal health issues affecting producers.
Event focuses on helping communities grow through local business
Rep. Dusty Johnson of South Dakota joined us to discuss rising input costs, proposed fertilizer legislation, and potential support for farmers navigating tight margins.
Lewis Williamson with HTS Commodities joined us to discuss the latest crop progress report and how market uncertainty and input costs are shaping planting decisions this spring.
Roger McEowen breaks down the EPA’s updated dicamba regulations and shares what farmers need to do to remain compliant under the new rules this growing season.
Jarrod Hardke with the University of Arkansas break down extreme drought conditions, shifting planting decisions, and the impact of rising input costs on Arkansas agriculture this season.

LATEST STORIES BY THIS AUTHOR:

As the strike at a JBS facility in Colorado continues, the National Right to Work Foundation is encouraging some employees to consider returning to work. The group says not all workers on strike may want to participate and urges those who choose to cross the picket line to resign from their union memberships.
Dr. Jeffrey Gold discuss nutrition challenges in rural communities, barriers to healthy food access, and ways to improve dietary outcomes this week on Rural Health Matters.
Governor Jim Pillen joined us to share the latest on the Nebraska wildfires, discuss relief efforts, and outline considerations for producers navigating the ongoing situation.
Bryan Combs with USDA’s National Agricultural Statistics Service breaks down new farmland data from the TOTAL survey, highlights key findings, and potential impacts for the ag sector. ASFMRA’s David Klein also shares how those trends are reflected in the current farmland market, especially in the Midwest.
Geopolitical tensions in the Strait of Hormuz disrupt fertilizer shipments, raising costs and creating uncertainty for U.S. farmers ahead of planting season.