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Economist says there’s more to the ag trade story

An ag economist says the industry shouldn’t get too hung up on the trade deficit.  University of Tennessee’s Charley Martinez says all ag trade is not created equal. “When we look at it, wine, spirits, and beer are making up a big chunk of that deficit, or that negative sign that we’re looking at,” he says. 

He tells Brownfield, “Altogether, agriculture is still a segment within this large economy, international trade market to other technology and other segments or other industries.”

Martinez says diversifying trading partners is one of the best ways to bolster exports. “Look at South Korea and Japan, for instance,” he says.  “On the beef side, those countries have become really strong trading partners. Consumers in South Korea are no different than the average consumer in America. They like their ground beef. They like their thick-cut steaks.”

The USDA is forecasting a $49.5 billion ag trade deficit for fiscal year 2025, with exports valued at $170.5 billion while imports are valued at $220 billion.