UNITED STATES FARM TRADE FORECASTED TO REALIZE A RECORD $30.5 BILLION DEFICIT BY THE UNITED STATES DEPARTMENT OF AGRICULTURE

On November 30, 2023, the United States Department of Agriculture (USDA) released their Economic Research Service and Foreign Agricultural Service Situation and Outlook report forecasting a deficit in United States (US) Farm Trade of $30.5 Billion. In fiscal year (FY) 2024, the USDA projected that US agricultural exports would realize $169.5 billion reflecting a decrease of $2.5 billion from their prior forecast in August 2023. USDA reports that this decrease is primarily due to reductions in exports of grain and feed, poultry, livestock, and dairy. This deficit will almost double the $16.7 billion dollar trade deficit experienced in 2023.

Traditionally, the US had an ag trade surplus over the last ten years averaging $12.5 billion. This week, this sharp forecasted decline has prompted three dozen farm organizations to act and call upon the Biden Administration to take the necessary steps to reverse this decline. The President’s Export Council urged the Biden Administration to recommit negotiating comprehensive trade agreements. In addition, they recommended the following actions:

1. Increase collaboration on diversifying the US agricultural supply chain,
2. Establish a robust agricultural trade agenda,
3. Enforce existing trade agreements,
4. Lead on international sustainability and climate efforts, and
5. Use the USDA’s Partnership for Climate Smart Commodities and the USDA’s International Climate Hub as a resource in European Union conversations on their Farm to Fork initiative.

 View the USDA Economic Research Service and Foreign Agricultural Service Situation and Outlook Report here.

View the President’s Export Council’s recommendations here.