It’s a familiar story: a once-dominant U.S. industry is challenged by low-cost competitors overseas and gradually loses market share. This time, however, the pressured industry isn’t a manufacturer. It’s the American farm.
Recent trade data and a new report from the U.S. Department of Agriculture reveal that U.S. leadership in exports of key agricultural products is eroding. The competition comes from Brazil and other low-cost countries that benefit from a range of government supports, including free trade agreements to which the U.S. isn't a partner. Over time, the impacts could be significant: Agriculture accounted for nearly 9% of all U.S. export value in 2022. By contrast, cars accounted for 3%.
Fortunately, there’s a solution. In recent weeks, coalitions of U.S. agriculture groups have demanded the Biden administration begin work on new free trade agreements to support farm exports. It won't be easy to overcome bipartisan hostility to free trade that’s rooted in a belief that it leads to unfair outcomes for U.S. workers. But if the U.S. is serious about sustaining farmers and its agricultural workforce, it must ensure that they can compete.
