Inflation Falls Boosts Farm Trade Outlook

Inflation Falls Boosts Farm Trade Outlook
Dec 30, 2025
By Farms.com

Lower prices and stronger trade trends support future growth for American agriculture

“These improvements are proof that strong economic leadership and America First policies are delivering real results for America’s farmers, ranchers, and producers,” said Commissioner Sid Miller. “Under President Donald J. Trump, we’re breaking down trade barriers and opening markets that were lost under the previous administration. A brighter future for American agriculture is being carved out one trade deal at a time.” 

Government reports show that inflation has reached its lowest level in nearly five years. Prices for gas, groceries, and rent have eased, while wages for blue-collar workers have risen. Texas recorded one of the lowest inflation rates in the nation, highlighting the state’s strong economic position. This improvement means families can manage daily expenses more easily, and farmers can better plan their production costs. 

In addition, the U.S. Department of Agriculture has forecasted that the agricultural trade deficit will decrease in the coming fiscal year. A smaller trade deficit means the country is moving closer to balancing agricultural imports and exports. This change is important because it can strengthen farm incomes, reduce dependence on foreign food, and support rural communities. 

“Texas has the nation’s strongest economy, powered by agriculture and energy, so it's no surprise to me that we’ve weathered inflation better than most,” said Miller. “But our work isn’t done. While we are beating back inflation, any trade deficit is too large. Persistent gaps threaten rural economies, our global standing, and the livelihoods of the Americans who feed the world. Our President knows this, and it’s clear this has been a top priority for his administration. Together we will work to stay vigilant, demand fair trade, and expand opportunities for Texas farmers and ranchers.” 

Texas continues to play a leading role in this economic recovery. Agriculture and energy remain major drivers of the state’s economy. Lower inflation in Texas shows that local producers are better protected from rising costs compared to many other regions. 

Although progress is visible, Miller stressed that continued efforts are needed. He noted that any trade deficit can affect rural livelihoods and the nation’s food security. Ongoing work to expand exports and promote fair trade will remain essential. 

Overall, falling inflation and improving trade forecasts bring renewed confidence to American agriculture. Farmers and ranchers can look ahead with greater optimism as the industry moves toward stronger economic balance and long-term growth. 

Photo Credit: gettyimages-orientaly

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