The report below gives a good overview of the Spring 2025 M&A activity in the Agriculture Industry Sector. The Global agriculture sector is undergoing a lot of changes due to shifting consumer preferences and innovative agricultural practices. In 2025, the gross production value for the global agriculture market is $4.8 trillion, growing at a CAGR of 3.4% each year until 2029. But in the U.S. alone, the market is projected to reach $587.3 billion in 2025. This is due to the demand for organic, plant-based, and locally sourced food. At the same time, productivity growth remains the primary driver of output because of technological innovations in genetics, chemicals, equipment, and farm organization. Hence, helping farmers boost their outputs without any additional inputs. Additionally, U.S. gross cash farm income is projected to rise to $609.4 billion in 2025, mainly due to higher cash receipts. European countries are leaning more toward organic production with support through policies and certification expansion. On the global stage, the U.S. is asserting a leadership position using platforms like Gulf 2025 to show its agricultural strength and deepen international trade relationships. Within the United States, Delta remains one of the top regions in agriculture, with Arkansas noted in rice production and Louisiana making a significant contribution to sugar, corn, and other staple crops. The implementation of new 20% tariffs on many imports by President Trump presents challenges for this sector. While domestic producers gain from less competition, the costs of key inputs like fertilizers and machinery are on the rise. Retaliation from key trading partners like China, Canada, and Mexico, who imported $91 billion worth of U.S. farm goods last year, threatens the $191 billion export market, reminding the $27 billion in losses from earlier trade disputes. The Agricultural imports are also expected to hit $212 billion by 2025, reflecting a 44% increase from the previous year. As the sector navigates through these challenges, it evolves and continues to remain resilient.
Posted by Dan Halvorson.