This year’s ag trade deficit is forecast to ballon past $45 billion. It is a number that puts the trade balance in the red by double digits.
“A trade balance of -$12 billion, which is $8.9 billion less than the -$3 billion during the same time period the previous year,” said Bart Kenner, USDA economist.
Kenner says the main driver of slower exports in the last couple of years has been the strong dollar compared to foreign currencies. U.S. ag exports fell around $4 billion last year. Exports to Asia are expected to fall several billion dollars this year, and that was calculated before tariff discussions.
Related Stories
Corn Refiners Association VP Kristy Goodfellow offered insight into the Feeding the Economy Report’s key findings, showing the breadth of agriculture’s economic impact and the challenges ahead.
National Association of Wheat Growers President Jamie Kress discusses how rising fertilizer prices pressure wheat producers and the Administration’s consideration of lowering duties on Moroccan phosphate.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
For agriculture, the meeting is seen as a potential turning point, with markets watching closely for any signals on trade, exports, and future purchasing commitments.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.
