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.
Dr. Gary Schnitkey from the University of Illinois discusses farmers’ sentiment toward industry consolidation, especially in the fertilizer sector, where costs remain historically high.
Weak cold chain performance can lead to slower movement, higher costs, and greater product loss after harvest or processing.
To qualify, land must be in the U.S., used substantially for farming in the last 10 years, and restricted from non-farm use for at least 10 years after the sale.
K-State economists say big swings in cattle futures can complicate hedging, margin calls, and timing of sales.
USDA says total grain inspected for export reached 2.81 million metric tons for the week ending June 11.
University of Nebraska–Lincoln Extension is helping ranchers navigate grazing and herd management strategies.
