By Jamie Martin
The US agricultural trade deficit is forecasted to grow significantly, with the USDA projecting a record $45.5 billion gap for fiscal year 2025. This updated outlook surpasses the previous estimate of $42.5 billion from August 2024.
Agricultural exports, expected to reach $170 billion, remain 13% below their 2022 peak, impacted by declining global prices. Imports, on the other hand, are forecasted to hit $215.5 billion, driven by rising demand for tropical fruits and sugar.
Crop farmers are particularly affected, as lower global prices for key commodities like cotton and soybeans have reduced their income. While exports of livestock, dairy, corn, and sorghum have seen modest increases, these gains have not offset losses in other sectors.
“As so goes the price of some of our key agricultural exports, so goes our total export value, and that also is a big contributor to farm income,” said USDA Chief Economist Seth Meyer.
Trade risks with Canada and Mexico, two major markets, add further challenges. Proposed tariffs of 25% could impact agricultural trade with both countries, which together account for over $59 billion in projected US exports in 2025.
This growing trade gap highlights the need for farmers to adapt to changing global markets while facing increased competition and rising import costs.
Photo Credit: usda
Categories: National