The United States of America (USA) is one of the key players in the global agricultural market and secures the top positions. The strong economic base with its strategic geographical location with climatic and weather phenomena, increases crop yields and productivity. This helped US exporters to become an undisputed king in Agri export with fluctuation in farm products.
However, in the past few years, the US tag of undisputed king of Net exporter of Agri products has turned to net importer. Despite the best climatic conditions and state-of-the-art farming equipment, USA exports are declining year-on-year, while at the same time, the total value of imports is increasing. Let’s explore the journey of US farm production with some statistical data for export and import.
What are the US Top Agriculture Commodities in 2024?
As per market inside data, USA’s Soybeans and Oliflakes exports decline by around 50.8% and 1.8%, respectively, from Jan to March 2024, making this the most affected agricultural trade products. Furthermore, Maize, Cotton, Wheat and Mesline, and Oliflakes exports rose by 25.8%, 37.4%, and 33.5% in the same period. This drastic increase in export value is attributed to limited production from Mexico, improving weather conditions, and the effect of EL Nino.
But overall, the USA faces a trade deficit of USD 2.6 billion in the first quarter of 2024. In the first three months, the USA’s total export and import value of agriculture are $14.8, $15.7, $15.5, and $17.4, $16.9, $18 billion respectively.
| Products | Jan 2024 | Feb 2024 | March 2024 |
| Soya Beans | 3174.6 | 2735.3 | 1533.7 |
| Maize | 1056.0 | 1261.4 | 1328.7 |
| Cottan | 537.0 | 676.1 | 738.1 |
| Wheat and Meslin | 419.1 | 504.8 | 559.7 |
| Oliflakes and other solid residues | 530.6 | 492.9 | 520.6 |
US Agricultural Performance: Analysis for Export and Import
It’s interesting to note that US agriculture export commodities present a huge market of USD 386 billion in 2023. As per industry analysis, the export and import of Agri products will increase 7% and 10 % from 2024 to 2028. Let’s explore the vastness of the US Agri market and the business opportunity for exports and imports.
US Agri export and import increased by USD 34.1, and USD 56.3, respectively from 2019 to 2023. In the last five years, the trade gap widened to USD 25.9 in 2023 from USD 3.7 in 2019. Between 2021 and 2022, the gap was narrowest. Surprisingly, this trade gap became highest in 2023 with 12.5% or 25.6 billion of trade deficit.
Last Five Years USA’s Agricultural Trade Performance
| Year | Imports | Exports |
| 2019 | 149.8 | 146.1 |
| 2020 | 154.8 | 154.1 |
| 2021 | 181.6 | 180.8 |
| 2022 | 211.9 | 200.8 |
| 2023 | 206.1 | 180.2 |
What are the Top Agricultural Exports and Imports By USA in 2023?
The USA has an ideal land for agriculture, over half of the country’s land which is around 876 million acres is used for food production. This abundance of US land helps farm producers with various crop varieties, making the country an undisputed king for agricultural export in the world.
However, geographical limitations and climatic factors, the USA’s dependency on some agricultural goods is continuously increasing. Here is the list of top agricultural import and export items by USA –
In 2023, Soya beans and Maize remained top of the list of export items with USD 27.9 and USD 13.2 billion. On the other hand, the USA is more dependent on Beer made from Malt, bread-pastries cakes, and food preparation, which are the top imported Agri products with $7.1, $7, and $6.8 billion in 2023. This dependency presents a market opportunity for those associated with these products. The top ten export and import food products are mentioned below.
Top Export and Import Commodities By USA in 2023
| Products | Exports Value | Products | Imports Value |
| Soya Beans | 27.9 | Beer made from malt | 7.1 |
| Maize | 13.2 | Bread, pastry, cakes, | 7.0 |
| Cottan | 5.9 | Food preparations, | 6.8 |
| Wheat and Meslin | 5.8 | Coffee | 5.6 |
| Oli-flakes, etc. | 5.7 | Wine of fresh grapes, | 4.8 |
| Fresh or chilled bovine meat, etc. | 4.1 | Tomatoes, fresh or chilled | 3.2 |
| Frozen cuts and edible offal, etc. | 3.5 | Frozen, boneless meat | 3.1 |
| Frozen, boneless meat | 3.4 | Fresh or dried avocados | 3.7 |
| Fresh or dried almonds, shelled | 2.9 | Fresh or dried bananas | 2.7 |
| Frozen meat of swine | 2.7 | Fresh grapes | 2.7 |
Who are the US Top Trading Partner for Agricultural Commodities?
The USA with a large geographical area and strategic location, offers a country smooth and seamless route for trade connectivity. This helps USA to trade agricultural products across the regions without any hurdles. Let’s explore this with the top export and import partners.
The Canadian market became the biggest trading partner for USA food items among the top five export destinations with USD 32.3 billion in 2023. China, Japan, and South Korea become the largest partners for food items exported by the USA.
Surprisingly, for some agricultural items, the USA is more dependent on Mexico and Canada with import values of USD 46.7 and USD 41 billion, respectively, in 2023. And, from the EU, Italy and France become the top partners for Agri products exports to the USA with USD 7.9 and USD 7 billion in 2023.
US Farm Products enjoys a USD 44.1 billion trade surplus with Asia and a USD 18.8 billion trade deficit with the EU. This shows US exporters get profit with Asia.
USA’s Top Trading Partner in 2023 for Agricultural Commodities
| Export Destination | Value | Import Origin | Value |
| Canada | 32.3 | Mexico | 46.7 |
| China | 29.2 | Canada | 41.0 |
| Mexico | 29.1 | Italy | 7.9 |
| Japan | 11.8 | France | 7.0 |
| South Korea | 7.5 | Brazil | 6.5 |
| Asia | 77.5 | Asia | 33.4 |
| European Union (EU) | 12.8 | European Union (EU) | 31.6 |
US Agri-Exports Decline & Import Rises
For the last few years, US farm exporters have faced many difficulties in their business expansion with foreign markets. This results in a loss of domestic market share with other players. Here’s a quick view of the decline in exports and the rise in imports.
The Rise of New Market
Affordable food products from Asia and the EU, replacing the existing US market. This increased US dependency on imports from Asia and the EU. For instance, Asia exported more than 33.4 billion agricultural products to the USA in 2023.
Trade Dispute with Major Economies
The US has bitter economic relations with almost all the major economies of the world. And due to this a limited place is left with the USA for farm products exports. For instance, due to trade barriers, the Russian and Chinese markets are not getting easy access to US Agri-market.
Logistics and Transportation Challenges
Continuous growing geopolitical challenges such as the Russia-Ukraine conflict, Israel-Hamas-Iran conflict, Iran’s threat to block the Strait of Hormuz, fluctuation in oil prices, etc. disrupt the supply network for export and import.
Strong Dollar
After the pandemic time, the value of the dollar has increased almost to its highest point. This strongness of the US dollar makes exports costlier because importers are required to pay an extra amount for the same, on the other hand, imports become cheap for the US.
Change the US Market Demand
The taste of the consumer market is changing globally toward fresh fruits, vegetables and others, while the USA has remained the top exporter of bulk grains. With this changing preference, the US export market for Agricultural products is decreasing year-on-year.
The decline in US agricultural exports and rise in imports is a complex issue for local American producers. Increased global competition, trade disputes, geo-political challenges, etc. plays a major role in US agri-trade performance. To safeguard the domestic market interest, the US Govt need to step in with policies and financial assistance.
