USDA is projecting another record ag trade deficit this fiscal year as imports surge and exports drop. USDA Chief Economist Seth Meyer says that USDA expects ag imports to outpace exports for the third fiscal year in a row.
That total makes up more than $215 billion dollars in ag imports. On the other side of the ledger, ag exports continue to fall from final FY 2024 numbers.
That would lead to a projected $45.5 billion-dollar ag trade deficit this fiscal year, up nearly $14 billion dollars from the FY 2024 previous record deficit of $31.8 billion dollars. Meyer says that falling export values since 2022 have helped to grow the deficit.
Imports of fruit and vegetables continue to rise, and market-sensitive coffee imports have also increased. The latest ag trade forecast comes as President-elect Trump threatens stiff tariffs on China and other competitors that farm leaders fear could lead to new threats against U.S. farm exports.
