Lack Of Trade Deals Hurting U.S. Farmers

The USDA is forecasting a record farm trade deficit next year, which raises the specter of an earlier debate and questions over the administration’s policy not to do free trade agreements.  The $42.5 billion farm trade deficit, if realized, again raises the issue of the administration rejecting market-opening free trade deals.

“No, we’re not doing the big, comprehensive agreements that are great for Ag and terrible for our industries," noted Biden Administration Trade Ambassador Katherine Tai.  "But, we are nevertheless securing wins, including 21 billion dollars over the last three years."

However her argument before Senate Ag lawmakers earlier this year swayed few.  Top Finance panel Republican Idaho's Mike Crapo said U.S. producers have already been hurt by the lack of new trade deals. 

“Australia and New Zealand each negotiated free trade agreements with Thailand. And since then, demand for premium U.S. beef fell by 30% because our cattlemen face a 50% tariff while those two partners face none.”

USDA Chief Economist Seth Meyer blames the record Ag trade deficit forecast on falling commodity prices, a slower Chinese economy, and the continued strength of the U.S. dollar.

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