USDA on Tuesday projected that the U.S. agricultural trade deficit will increase to $42.5 billion for fiscal 2025 as the fall in prices for corn, soybeans and other commodities lowers their value.
U.S. ag exports are estimated to total $169.5 billion in FY25, a drop of $4 billion from FY24, while USDA is forecasting that ag imports will increase by $8 billion to $212 billion for the fiscal year that starts Oct. 1.
The overall trade deficit has become an issue on Capitol Hill in the 2024 election, with Republicans arguing that the Biden administration hasn’t done enough to open up new markets for U.S. exports.
The projected increase in U.S. agricultural imports reflects increases in fresh fruits and vegetables, as well as sugar, cocoa, coffee, wine and other products.
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The United States is expected to slightly increase the volume of corn and soybeans shipped overseas, but the value of those exports is projected to fall. The value of U.S. corn exports is estimated to drop from $13.1 billion in FY24 to $12.2 billion. Soybean exports are expected to decline from $24.4 billion to $22.9 billion.
The U.S. is expected to ship 50.4 million metric tons of soybeans, worth $22.9 billion, in FY25, compared to 46.3 million tons, worth $24.4 billion, in the current fiscal year.
Wheat exports are expected to rise slightly from $5.9 billion to $6 billion.
Exports of tree nuts are projected to grow from $9.5 billion to $9.9 billion in FY25. Exports of processed fruits and vegetables are estimated to increase $300 million to $8.3 billion.
