USMCA Trade Signals Matter for North American Agriculture

NASHVILLE, TENN. (RFD NEWS) — North American trade numbers are sending mixed signals for U.S. agriculture as the U.S.-Mexico-Canada Agreement (USMCA) faces renewed attention.

Canada posted record exports in May, helped in part by farm and food products and stronger sulfur shipments. That matters because sulfur is tied to phosphate fertilizer production and can affect crop input costs.

Mexico may be the bigger farm story. USDA’s Economic Research Service says Mexico was the largest U.S. agricultural trading partner in 2025, with combined agricultural exports and imports totaling $74.5 billion.

The broader trade picture is less favorable. Census data show the U.S. goods deficit with Mexico reached $21.1 billion in May, while the overall U.S. trade deficit widened to $77.6 billion.

For agriculture, the relationship remains complementary. The U.S. exports grains, oilseeds, meat, dairy, and related products to Mexico. Mexico exports vegetables, fruit, beverages, and other food products to the U.S.

Farm-Level Takeaway: USMCA stability remains critical for trade in grain, livestock, produce, and fertilizer across North America.
Tony St. James, RFD News Markets Specialist

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:

Final details on eligible endorsement combinations are expected by the end of November.
Stronger East Coast shipments are giving U.S. corn another route to overseas markets.
Higher restaurant spending could support foodservice demand for U.S. agricultural products.
Lower production is tightening domestic supplies and pushing rice prices higher.
Growing biofuel use is helping support domestic soybean crush demand.
The special provision giving producers the higher of ARC or PLC for 2025 will not continue next year.
Higher shipping costs could make U.S. grain less competitive overseas.
Higher heating costs are putting added pressure on household budgets in rural communities.
The planned UAE facility could create a new annual export outlet for American corn growers.
Slower exports and stronger foreign competition are weighing on the U.S. pork sector.
AFBF Deputy Chief Economist Dr. Faith Parum says Title I commodity payment rates are expected in November. Producers should watch for USDA application details and contact local FSA offices.
More soybeans are being processed domestically as renewable fuels drive demand for soybean oil.