Grain being loaded into a ship for export in Portland OregonThe USDA Economic Research Service predicts the agricultural deficit will widen to $32 billion in 2024. This is an increase of $1.5 billion from the February projection. This ag deficit is based on a projected increase in imports.

Higher export levels for livestock, dairy and ethanol will offset declines in grains and feeds, oilseeds and horticultural products. On the import side, the USDA Economic Research Service has increased its projection by $1.5 billion to $202.5 billion. This is the result of higher horticultural, livestock and dairy imports.

There has been a shakeup in the order of the top export markets. Mexico is projected to be the largest export market, displacing China. Canada claims the second spot and China has fallen to third. Year-to-date U.S. soybean sales to China decreased 23%, while corn shipments fell 67%. These losses were partially offset by increased sorghum and tree nut sales.

Read more on the shift in export sales here.