The USDA projected America’s food and agricultural exports will drop by 12 percent through fiscal year 2026. The erosion will be caused by a global economic slowdown, inflation, higher interest rates, and the strong U.S. dollar. Overall economic conditions are projected to slow U.S. exports quicker than imports, leading to a trade deficit. USDA projections show that exports will drop across the board, but grains and soybeans will get hit the hardest. Reduced export volumes will also mean lower commodity prices. But 2027 is expected to show a rebound in exports. Farm exports were forecast at $190 billion this year, dropping to $166.3 billion in 2026, and then rising to $182.2 billion by 2032, the last year of the ten-year baseline. Imports will also slow down but are expected to recover by 2032. Food and ag imports were forecast at $199.1 billion this year and grow to $200 billion by 2032.