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Economist: U.S. ag trade deficit is growing

An ag economist says the U.S. ag trade deficit has increased.

University of Missouri’s Ben Brown says, “Historically, the ag industry I think has really celebrated that while there was a national trade deficit for all products, agriculture had a positive story to tell,” Brown said. “Meaning we exported more products away from the United States than what we imported. That has changed.”

USDA data shows U.S. ag exports in June were more than $12.7 billion compared to $15.9 billion in imports, and the calendar year deficit is more than $9.9 billion.

He tells Brownfield the trend is expected to continue.

“Soybean oil, for instance, being one,” Brown said. “We’re not going to export as much soybean oil as what we have in the past because we’re going to use more of it domestically. And when you do that, you shrink the products we’re shipping and that creates a bigger deficit.”

Brown says grain and feed exports are down 19% year-over-year.