USDA is forecasting an agricultural trade deficit in 2023. While deficits have happened in the past, the agency has never forecast one in advance until this year. The agency says ag exports are projected to reach $190 billion next year, but imports are projected to rise to $199 billion.
Seth Meyer, chief economist with USDA, says an ag trade deficit isn’t a major cause for concern. “I’m of the opinion that having both rising exports and imports is a good thing,’ he says. “Farmers can sell their products at a good price while consumers can shop for what they want.”
Ag exports are forecast to set another record during the fiscal year 2022 at $196.4 billion. If realized, that number would top the previous record of $177 billion in 2021. American exports currently face major pressure from the strong dollar value making U.S. products more expensive in the world’s markets.