There’s growing concern that U.S. agriculture could be on the edge of another major downturn. During a recent Senate Agriculture Committee hearing, lawmakers and experts warned that declining exports, weakening trade partnerships, and rising global competition are pushing the industry toward what some are calling a potential U.S. agriculture trade crisis.
Exports Are Down — and That’s a Big Deal
In 2023, U.S. agricultural exports fell by $17 billion, the largest single-year drop since 2014. That trend has continued into 2024. This matters because over 20% of U.S. farm production is exported. When those markets shrink, so do farm incomes.
Senators pointed to China’s reduced purchases, trade tensions, and global competition as major factors. Brazil is capturing a bigger share of key markets, especially in soybeans and beef. If these trends continue, American farmers may lose their edge in the global market.
Is This the 1980s All Over Again?
The comparisons are starting to surface. During the 1980s farm crisis, high debt, rising interest rates, and collapsing export markets created a wave of foreclosures and bankruptcies. While today’s conditions aren’t identical, several senators, including Chuck Grassley, warned that the groundwork for a similar crisis is already being laid.
“We’re watching farm income fall while interest rates remain high and trade weakens,” Grassley said. “This is how the last crisis began.”
The U.S. Needs Stronger Trade Policy
Multiple experts at the hearing stressed the need for new and aggressive trade strategies. Joe Glauber, former USDA chief economist, emphasized that the U.S. can’t afford to be reactive. He urged policymakers to secure long-term trade deals, reduce market barriers, and push back against unfair trade practices abroad.
Senators also voiced frustration over the lack of urgency from current trade officials. Without stronger leadership, they fear the U.S. could fall further behind, deepening the risk of a full-scale U.S. agriculture trade crisis.
What Small Farms Should Know
While national policy takes time to shift, small and midsize farms can take steps now to protect themselves. One of the biggest takeaways from this hearing is the importance of diversification. If foreign markets falter, local sales become even more critical.
One Platform. All Farms. All Local.
The potential for a U.S. agriculture trade crisis is real, but it doesn’t have to define the future. By building direct-to-consumer models, embracing local markets, and creating strong online visibility, farmers can stay resilient, no matter what happens globally.
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