U.S. Ag Trade Deficit Projected to Surge 45% Due to Rising Imports and Declining Exports

The U.S. agricultural trade deficit is expected to grow by 45% to $27.5 billion in fiscal 2024, according to a USDA report. This significant rise is attributed to Americans’ unwavering demand for imported fresh produce, coffee, and wine. Concurrently, there’s an anticipated reduction in farm exports, especially to China. This trend will result in food and ag imports totaling an estimated $199.5 billion in fiscal 2024, while exports will likely amount to $172 billion. The USDA cites increased imports of horticultural and livestock products as a primary reason, with Mexico and Canada being significant contributors. Soybean sales, the primary U.S. farm export, are projected to decline by 17% due to lower production and competition from South American countries. Furthermore, China’s agricultural imports from the U.S. are forecasted to drop by $3 billion, impacted by reduced demand for soybeans, dairy, and beef.