August 11, 2025

U.S. Ag Trade Deficit Continues Climbing in 2025

The U.S. agricultural trade deficit hit a record high in the first half of 2025. Bloomberg said that only highlights American farmers’ longtime dominant role in world exports, which is hurt by President Donald Trump’s trade wars. Agricultural export value trailed the import value by $4.1 billion in June, a gap that’s 14 percent larger than a year ago. That pushed the ag sector’s trade deficit to $28.6 billion through the first half of 2025. For 50 years, the U.S. ag sector has consistently had major trade surpluses, but the growing deficit signals a historic reversal for the sector. The trend shift began in Trump’s first term during the trade war with China. Recent data from the U.S. Commerce Department showed the U.S. exported only $5.5 billion worth of farm goods to China during the first six months of the year, compared to $11.8 billion at the same point last year. 

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The RFS Turns 20

The Renewable Fuel Standard turned 20 on Friday, August 8^th. Groups like the National Corn Growers Association celebrated the milestone, noting that since it was signed into law, the RFS has provided immeasurable benefits to Americans. “It has dramatically increased demand for corn, provided significant savings to consumers at the pump, and strengthened America’s energy dominance,” said NCGA President Kenneth Hartman, Jr. Clean Fuels Alliance America also celebrated the 20^th birthday of the RFS. “Under the RFS, the last twenty years have seen biodiesel and renewable diesel production grow from a few hundred million gallons to five billion gallons, meeting nine percent of the nation’s on-road diesel demand,” said Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs. “Biodiesel and renewable diesel production are vital for America’s economy, supporting $42.4 billion in economic opportunity.” It also supports ten percent of the value of every soybean grown in the United States’ fields.  

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Legislation Would Expand Consumer Access to Homegrown Biofuels

Senate Ag Committee members Chuck Grassley (R-IA), Joni Ernst (R-IA), and Ranking Member Amy Klobuchar (D-MN) introduced the bipartisan “Ethanol for America Act” to make it easier for Americans to fuel their vehicles with homegrown E15. The bill eliminates unnecessary barriers by requiring the Environmental Protection Agency to finalize rulemaking from 2021 to make the E15 fuel label clear and more consumer-oriented. It would also confirm the compatibility of E15 with existing underground fuel storage and dispensing equipment, ensuring business owners are not required to make costly and unnecessary infrastructure changes. “E15 is good, good, good for consumers, good for the environment, and good for national security,” Grassley said. “Today, we are sending a strong message in support of E15, urging the administration to recognize its benefits.” Ernst also added that it’s well-known that E15 creates lower prices at the pumps and adds value to homegrown crops in the U.S.

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Farm and Sugar Experts Highlight Challenging Conditions

Farm economy and sugar policy experts discussed the challenges facing the U.S. sugar industry at the American Sugar Alliance’s 40^th annual meeting. Farmers’ operating margins are getting squeezed by falling revenue and persistently high input costs. “U.S. farmers have been dealing with historic inflation,” said Dr. John Newton, Executive Head at Terrain. “Farm production expenses have increased by more than $100 billion since 2018, and every single category is more expensive today than only five or six years ago.” While expenses are staying high, commodity prices are falling. In only two years, prices for sugarbeet and sugarcane farmers have fallen by 26 percent and 13 percent, respectively. Those prices continue to fall as foreign nations subsidize their own domestic industries and are expected to dump near-record amounts of sugar on the world market. “A robust sugar industry is critical to supporting rural economies,” said Dr. Rob Johansen of the American Sugar Alliance.

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New Solar Soil Health Highlights Agrivoltaics Summit

American Farmland Trust released a new Solar Health Guide and announced new cross-sector partnerships to advance its Smart Solar work at the 2025 Solar Farm Summit in Chicago. AFT is building on an interest in agriculturally compatible approaches to solar energy development across rural America. The third annual Solar Farm Summit represented America’s leading farmer-first solar forum and the largest agrivoltaics conference in North America. “AFT defines agrivoltaics as the intentional combination of solar energy generation and agricultural products on the same piece of land, which is a strategic approach to increasing the viability of America’s farms and ranches,” said AFT Senior Fellow Jenny Lester-Moffit. “The combination produces food and renewable energy on the same piece of land.” The new AFT-published guide presents key considerations in safeguarding soil health during solar agrivoltaics development through the entire process. The guide is tailored to agrivoltaics applications, including grazing and crop production.  

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USDA to Issue One-Time Payment to Insurance Providers

The USDA’s Risk Management Agency will make a one-time, Congressionally-mandated payment to Approved Insurance Providers administering eligible crop insurance contracts for 2022 and 2023 reinsurance year specialty crops. The payments will provide additional compensation to agents delivering crop insurance to farmers across America. The total funding available is $30 million, and RMA will distribute funds to AIPs proportionally, based on their liabilities for eligible crop insurance contracts for 2022 and 2023 reinsurance year specialty crops. “The additional payment recognizes the great service Approved Insurance Providers and crop insurance agents provide America’s farmers,’ said RMA Administrator Pat Swanson. “We look forward to continuing our progress in expanding crop insurance to specialty crops by engaging directly with the agents servicing these growers.” Funding for the payments comes through the American Relief Act of 2025. The American Relief Act was signed into law on December 21, 2024, and extended the 2018 Farm Bill for one year.

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