Overview
U.S. and global trade are greatly affected by the growth and
stability of world markets, including changes in world population,
economic growth, and income. Other factors affecting agricultural
trade are global supplies and prices, changes in exchange rates,
government support for agriculture, and trade protection
policies.
With the productivity of U.S. agriculture growing faster than
domestic food and fiber demand, U.S. farmers and agricultural firms
rely heavily on export markets to sustain prices and revenues.
Historically, U.S. imports have increased steadily, as demand for
diversification in food expands. U.S. consumers benefit from
imports because imports expand food variety, stabilize year-round
supplies of fresh fruits and vegetables, and temper increases in
food prices.
U.S. agricultural exports have been larger than U.S.
agricultural imports since 1960, generating a surplus in U.S.
agricultural trade. This surplus helps counter the persistent
deficit in nonagricultural U.S. merchandise trade (see data table
Value of U.S. trade-agricultural, nonagricultural, and total by fiscal Excel
table or calendar Excel table year). Even if there were a trade
deficit in agricultural products, this does not imply a lack of
competitiveness on the part of U.S. agriculture. Rather, it
reflects increasing diversity in consumers' food choices and
changing relative exchange rates, which make U.S. goods relatively
more/less expensive in international markets and import goods
relatively less/more expensive.
ERS provides research and analysis on factors influencing U.S.
agricultural exports and imports.