The U.S. is poised to experience a historic agricultural trade deficit for the second consecutive year, a stark shift from its traditional position of surplus.
This concerning trend, highlighted by the American Farm Bureau Federation (AFBF) in June, is attributed to several key challenges.
One major factor is the rising cost of labor in the U.S. agricultural sector.
Compared to just 10% for overall agricultural production, labor costs for fruits and vegetables can reach a staggering 38.5%.
This makes American produce less competitive against less expensive foreign options.