U.S. ag trade deficit doubles, soybean exports to china down 23%, corn down 67%

The U.S. ag trade deficit continues to grow. USDA is now projecting it will reach $32 billion for fiscal 2024, up from $16.7 billion in FY23.

USDA's latest quarterly outlook raised the estimate for U.S. ag imports to $202.5 billion, while the forecast for exports was unchanged at $170.5 billion.

Take note: China is projected to drop to third place among U.S. ag export markets behind Mexico and Canada. China is now expected to buy $27.7 billion worth of soybeans, corn and other American commodities, a reduction of $1 billion from the February forecast, largely due to increased competition from Brazil.

The volume of U.S. soybean exports to China is down 23% so far this fiscal year compared to FY23. Year-to-date corn exports by volume are down 67%.

Republicans have been attacking the Biden administration over the ag trade deficit, which has several different causes, including declining commodity prices as well as increased consumer demand for imported fruits, vegetables and other products.

Ag Secretary Tom Vilsack says the constant criticism of China by U.S. policymakers is backfiring on American ag exports.

Learn more from USDA's Outlook for U.S. Agricultural Trade: May 2024.