By Andi Anderson
The U.S. agricultural trade deficit widened to a new record in July 2025, underscoring the difficulties facing American farmers. According to data from the US Department of Agriculture, agricultural imports exceeded exports by nearly $5 billion in July, bringing the deficit for the first seven months of the year to $33.6 billion.
The growing deficit is being driven largely by increased imports, while exports have slipped. USDA reported that agricultural imports totaled more than $132 billion in the first seven months of 2025, up almost 8% from a year earlier. At the same time, exports fell by 1.3% to $98.8 billion.
Experts say the widening gap reflects multiple challenges. Limited capacity to expand production, stronger competition from overseas markets, and changing consumer demand for imported products are all contributing factors. Trade policies have also influenced the trend, with China turning to Brazil for supplies after trade disputes with the U.S.
Looking ahead, USDA revised its projections for fiscal years 2025 and 2026. The trade deficit for FY25 is now estimated at $47 billion, down slightly from earlier forecasts, while FY26’s deficit is projected at $41.5 billion. Even with this improvement, the figures remain well above FY24’s $32 billion shortfall.
Soybean growers are among the hardest hit. Exports of soybeans are projected to decline from $24.2 billion in FY24 to $18.3 billion in FY26. China, once the largest buyer of US soybeans, has yet to place orders for the current crop. A year ago, China had already purchased nearly 3 million tons by this point in the season.
Caleb Ragland, president of the American Soybean Association, summarized the concern: “Right now, we’re in a very dire situation.” Without Chinese demand, soybean farmers are heading into harvest season with growing uncertainty about their financial stability and the future of American agricultural exports.
Photo Credit: getty-images-elhenyo
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