Farm Raw Product Wholesalers NAICS 4245

May 23, 2025 - Deal Expands Market for US Ethanol, Beef

• The May trade deal between the US and the UK will expand US access to the UK market, creating an opportunity upwards of $5 billion in new exports for US farmers, ranchers and producers, according to the US Grains Council (USGC). The Trump administration hailed the deal as a major victory for US farmers and ethanol producers. Specifically, it includes over $700 million in US ethanol exports, via a new tariff-free quota for ethanol, applying to the first 1.4 billion liters. The UK is the second-largest market for US ethanol. Also in the deal is $250 million in US beef and other farm product exports. Very little US beef has been sold in the UK since 1989, when most was banned because of concerns about the use of growth hormones. Following the deal, hormone-treated beef still won’t appear in UK supermarkets.
• As part of its dismantling of USAID, the Trump administration halted the Food for Peace program, which provided a market for US crops and helped to feed 4 billion people worldwide since its inception in the 1950s, The Wichita Eagle reports. However, closure of the US Agency for International Development is facing pushback from farm state Republicans. To safeguard the program and billions of dollars in wheat, rice, and other farm product sales, two Kansas Republicans are pushing legislation to move it to the US Department of Agriculture. Sen. Jerry Moran of Kansas said food aid had proven its value in fostering political stability abroad, bolstering US national security and providing markets for US crops, adding “By moving this program closer to the producers who grow these crops, we can help reduce waste and make certain our farmers have access to this valuable market.”

• US agricultural exports in fiscal year 2025 (ending Sept 30) are projected at $170.5 billion, up $500 million from the November forecast, as higher grain and feed exports offset reductions to the oilseed outlook, according to the USDA’s Outlook for US Agricultural Trade: February 2025. Grain and feed exports are projected at $37.7 billion, up $1.2 billion from November, led by higher corn exports. Along with higher feed and fodder exports, these increases more than offset moderately lower wheat, sorghum, and rice exports. Mexico is forecast to remain the largest market for US agricultural exports at a record $30.2 billion, up $300-million from the previous forecast on strong sales of dairy, wheat, and other products during the first quarter. Exports to Canada are forecast to fall $800 million to $28.4 billion due to weaker-than-expected shipments to date. Exports to China are cut by $1.3 billion to $22 billion, largely due to reduced prospects for US soybeans, grains, and cotton.
• Employment by farm raw products wholesalers grew 3.8% in March compared to a year ago, according to the latest US Bureau of Labor Statistics data. Industry inventories jumped 10% year over year in February but fell 7.1% from January, according to the Census Bureau. Inventory levels generally peak in the winter months as distributors build stocks for sale later in the year. Meanwhile, sales for farm raw product wholesalers dropped nearly 20% year over year in February and were down 14.2% from January. Looking ahead, sales for the US farm raw product wholesalers industry are forecast to grow at a 4.89% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to the Interindustry Economic Research Fund.