The U.S. agricultural trade deficit was a record $17 billion in fiscal year 2023 and is certain to break records again this year, according to preliminary federal data released on Monday. The cumulative deficit totaled $15.2 billion at the end of May, with four months remaining in fiscal year 2024.
USDA analysts forecast that the deficit would swell to $32 billion this year, aided by the strong dollar and persistent domestic demand. The strong dollar impedes exports by making U.S.-made goods more expensive and encourages imports by making foreign goods more affordable. The leading imports are fresh fruits and vegetables, wine, beer, distilled spirits, coffee, and cocoa. The major U.S. exports are grains, oilseeds, cotton, and livestock and dairy.
Through May, ag exports totaled $178.2 billion. Imports totaled $195.3 billion for a deficit of $15.2 billion. The deficit increased by nearly $4.3 billion in April.
The USDA will update its agricultural trade estimates for this year and make its first forecast of 2025 trade on Aug. 27.