Western Valley Approved to Acquire Cargill’s Fresno Beef Plant, with Job Security Mandates

Brief:

• The U.S. agricultural trade deficit is projected to reach a record $42.5 billion next year, according to the U.S. Department of Agriculture (USDA). This represents a 40% increase from the estimated $30.5 billion deficit for the current fiscal year.
• The USDA’s recent report forecasts flat or declining export values to most major trading partners, with the exception of horticulture. Contributing factors include intensified competition from Brazil, lower crop prices, and tight beef supplies.
• Agricultural imports are on the rise due to increased demand for sugar, horticulture, and tropical products.

Insight:

• GOP lawmakers have criticized the Biden administration for its trade strategy, arguing it fails to expand export markets through new free trade agreements, which could mitigate losses from reduced demand by China, a key agricultural buyer.
• Republican senators have claimed that the current decline in U.S. agricultural exports is a result of an inadequate trade strategy that does not effectively enhance market access or reduce trade barriers.
• U.S. agricultural exports for 2025 are forecasted to be $169.5 billion, slightly down from previous predictions, while imports are expected to reach a record $212 billion, reflecting a nearly 4% increase.