U.S. Farm Exports Expected to Fall 10%

U.S. farm exports will fall 10% to $56 billion this fiscal year and imports will rise, erasing a trade surplus in agricultural products for the first time since 1959, the government said.

Exports in the year that ends Oct. 1, 2005, will fall from a record $62.3 billion in fiscal 2004, after a plunge in crop values, the Agriculture Department said. The forecast is $1.5 billion less than the government expected in August. Imports will rise 6.3% to a record $56 billion.

Record production of corn, soybeans and cotton in the U.S. and bumper crops elsewhere reduced prices globally, the department said. U.S. economic growth is boosting agricultural imports, led by beer, wine, beef and fresh and processed fruits and vegetables.