USDA Projects Record Ag Trade Deficit of $30.5 Billion in 2024

$30.5 billion is the projected ag trade deficit forecasted by USDA, which means the U.S. continues to purchase and import far more ag products than what is being sold and shipped to other countries.

USDA is forecasting agricultural exports at $173.5 billion and imports at a record $204 billion for fiscal year 2024—which started Oct. 1, 2023 and ended Sept. 30, 2024.

The ag sector has recorded monthly deficits in 10 out of 11 months throughout fiscal year 2024. Three months during this time have seen deficits of $4 billion or more and eight months with a deficit of $1 billion or more.

U.S. agricultural exports were at $13.01 billion in August, essentially unchanged from July, against imports of $17.19 billion, which were down 2% from July, resulting in a monthly trade deficit of $4.18 billion.

AgWeb reports that exports so far this fiscal year total $161.3 billion compared to imports of $188.82 billion, creating a cumulative deficit of $27.52 billion. These numbers do not include the data from September, which has not yet been announced by USDA for the final month of the fiscal year.

In fiscal year 2023, the trade gap was $17.1 billion. Based on the fiscal year 2024 forecasts and cumulative trade data, agricultural exports in September would need to reach $12.2 billion to meet the USDA forecast, while imports would need to be $15.18 billion.

Source: NAFB News Service