U.S. Ag Trade Deficit Hits Record High in First Half of 2025

The U.S. agricultural trade deficit reached a record high in the first half of 2025, reflecting mounting challenges for American farmers in the global marketplace. USDA data shows agricultural imports exceeded exports by $4.1 billion in June, pushing the deficit for the first six months to an unprecedented $28.6 billion—14% higher than the same period last year.

This marks a stark reversal from decades of consistent trade surpluses that once positioned U.S. agriculture as a global leader and a key foreign policy tool. The shift began during the trade war with China in 2019 and 2020, with deficits continuing over the past three years.

Key Drivers Behind the Deficit

• Trade Policy Impacts: Ongoing tariff battles have reshaped trade flows, with China—the world’s largest crop importer—sourcing more from Brazil and other competitors.

China’s Declining Role as a Buyer
U.S. farm exports to China dropped more than 50% in the first half of 2025, falling from $11.8 billion to just $5.5 billion. Soybean sales have been hit particularly hard, with China not purchasing a single cargo of new-crop beans so far this marketing year—its latest start since 2005. As of late July, U.S. soybean export commitments for 2025/26 stood at a 20-year low.