Author:  James Urbach, Director, Global Banking

• Where are the best trad opportunities?
• Where are emerging markets?
• Finding the right financial partner

Business growth is the goal of any commercial entity, but for agribusiness, finding new markets can be a challenge. With 1.9 million farms and ranches dotting the American landscape, staying confined to local markets means competing in an already crowded space. Seeking out international markets can unlock new revenue streams, but achieving success means you must know where to look and how to seize the opportunity.

Where U.S. Agribusiness May Find the Biggest Opportunities for Trade

Demand for U.S. agricultural products is high, resulting in continuous growth in export markets over the last 25 years. In 2025, however, new tariffs and retaliatory trade measures between the U.S. and key partners, including Canada and China, have added complexity to export markets. These shifts temporarily raised costs for some products and limited markets. Changes and uncertainty will continue, so agribusinesses need to watch for policy changes.

However, many opportunities for expanding into global markets still exist. According to the USDA Economic Research Service, the following countries represent some of the biggest opportunities for U.S. agricultural exports and market challenges:

• Canada: Currently, over $32 billion dollars in agriculture and agrifood products are exported to Canada, our nearest neighbor to the north. Top products include grain alcohol, food preparations, baked goods, dog or cat food, and corn. Trade with Canada is generally stable under the United State-Mexico-Canada Agreement (USMCA), but there have been notable disputes.
  • Challenges: U.S. tariffs on Canadian goods and Canada’s reciprocal tariffs, covering billions of dollars’ worth of products that include certain agricultural items, have periodically raised costs for exporters. In addition, disagreements over how Canada allocates its dairy tariff-rate quotas under the USMCA continue to affect U.S. dairy access. Because more than $200 million in food and agricultural products cross the U.S.-Canada borders each day, even temporary tariffs or disputes can have significant economic impacts.
• China: Policy developments and rising household incomes across southeast Asia have increased demand for many U.S. ag products. In China alone, the share of U.S. ag imports rose from 4% in 2004 to 15% in 2024, making it the biggest importer of U.S. agricultural products last year.
  • Challenges: In 2025, however, new tariffs and retaliatory trade measures between the U.S. and China added complexity to export markets and introduced uncertainty for agribusinesses looking to enter the market.
• European Union: The EU remains one of the top importers of U.S. agricultural products. Horticultural products — including wine, spirits and essential oils — make up over 60% of that total.
  • Challenges: In 2025, certain U.S. products faced tariffs and non-tariff barriers related to regulatory compliance, including biotechnology approvals and meat import quotas, which can influence competitiveness and pricing.
• Japan: With a population of over 120 million people and limited land for farming, demand for ag imports remains high in Japan. The country is one of the largest buyers of U.S. corn.
  • Challenges: Tariff reductions through the U.S.-Japan Trade Agreement continue to provide preferential access in 2025, though exporters must stay alert to any policy changes that could affect market conditions.
• Mexico: The latest numbers from the USDA indicate that Mexico’s agribusiness trade is complementary to that of the United States, as the country imports different commodities from the U.S. than it exports. More than three-quarters of U.S. exports to Mexico are grains, oilseeds, meat and related products.
  • Challenges: In 2025, trade remained relatively stable under the USMCA, but occasional tariffs or regulatory changes have affected specific products. U.S. agribusinesses need to monitor ongoing USMCA compliance and adjustments in tariff-rate quotas.

Where Are Emerging Markets?

In addition to these prime established trade geographies, the USDA projects growth in some emerging markets. Continental Africa, with its rapidly growing population of over 1.4 billion and evolving economic and food demand patterns, is poised to become a key player in global trade and a significant U.S. trading partner.

East Asian countries other than China, including Vietnam and South Korea, are growing markets for products such as oilseeds, grains and meats.¹ In 2025 alone, the need for grain and feed, corn, sorghum, soybean oil exports and other products is predicted to rise across multiple international markets.

Tariff reductions under bilateral agreements in some regions are creating new opportunities in 2025, but exporters should remain aware of potential policy changes that could affect trade costs and access.

Finding the Right Partner to Support Agribusiness Trade

Despite the opportunities, international markets are always evolving due to geopolitical conditions and changing trade laws. To encourage success and limit risk, it's good to have a financial partner that can help you pivot and stay ahead of developments. This is where your bank comes in.

• A knowledgeable banking partner can help your business understand market dynamics, particularly evolutions in tariff and trade policies.
• The right bank can also help you find new opportunities when profitability or demand in existing markets declines. FNBO, for example, has contacts within national trade groups to keep abreast of trends and advise customers on changing market opportunities.
• Your bank should also have the expertise to help you avoid payment risks. An experienced banking partner can advise on the best strategies and provide payment tools, such as letters of credit, trade credit insurance and hedging strategies, to minimize financial exposure and safeguard cash flow.

Overall, your bank should be your biggest ally, providing the guidance you need to remain successful, and the payment tools you need to help mitigate some of the biggest risks facing agribusinesses engaged in international trade.

Learn more about how FNBO can support your international aspirations or contact our Global Banking team today.

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About the Author

With more than 25 years of experience, Jim works with corporate clients, financial institutions and technology partners in the Colorado market. He leads the bank’s efforts to build a correspondent network, supporting corporate customers with comprehensive lending solutions. Through valued relationships, he comes to know the business of each customer, using the operational insights gained to provide guidance across the complex world of international business.

¹ James Kaufman. “Agricultural Trade.” Economic Research Service, Jan. 1, 2025. Web.