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Ag trade deficit hits another record high in July
An ag economist at Ohio State University says the ag trade deficit reached its peak in July and it’s spurring concerns about the future of U.S. ag exports.
Ian Sheldon says ongoing trade tensions with China are impacting the bottom line for producers.
“That’s putting quite a bit of downward pressure on soybean prices,” he says. “It’s partly a price change, but it’s mostly because China is using soybeans as a bargaining chip in its ongoing discussions with the United States.”
The USDA reduced its estimate for Chinese demand by $500 million for FY25, and $9.5 billion in FY26.
He tells Brownfield farmers need access to new markets, but, “Many of those countries are countries where the U.S. has imposed quite prohibitive reciprocal tariffs. What the United States is doing in trade policy has the potential to have a knock-off effect disrupting our export markets depending on how those countries respond.”
The U.S. is projected to have an ag trade deficit of $47 billion this year, a record large.
AUDIO: Ian Sheldon, Ohio State University
So, does this mean we can expect food prices to come down??