Ag Trade Deficit Grows

Ag Trade Deficit Grows

Bob Larson
Bob Larson
From the Ag Information Network, I’m Bob Larson. The ag trade deficit continues to soar, based on USDA’s latest trade figures for fiscal ’24 through August.

USDA Economist Bart Kenner says US farm exports continue to slide …

KENNER … “Agricultural exports were 161.3-billion dollars, down 3-percent from the previous year.”

While imports continue to grow …

KENNER … “Agricultural imports were 198-point-8 (B) billion dollars, up 5-percent from the previous year, for a trade deficit of 27.5-billion dollars.”

Or, Kenner says nearly twice the farm trade deficit last year at the same time. And not just from reduced volumes …

KENNER … “We are seeing sustained or even increased volumes, but the value of those exports has been decreasing. And so, we see a decrease in the total value of agricultural exports.”

But some bulk export volumes like wheat and soybeans are off, while others show modest improvement …

KENNER … “Corn exports were 12.6-billion dollars, up 2% from the previous year. Soybean exports were 22.8-billion dollars, down 27% from last year.”

Last month, USDA predicted a record ag trade deficit the upcoming fiscal year of 42.5-billion dollars, a third more than the last FY which ended in September.

Leading Democrats and Republicans in Congress have argued for more market-opening trade deals.

Such agreements are opposed by President Biden and organized labor because they say they would hurt manufacturing jobs.

Previous ReportFood Inflation Persists
Next ReportClimate Smart Tax Credits