Petra GA » Entering the U.S. Market: A Brief for Global Agribusiness Leaders

U.S. Economic Overview

As of 2025, the U.S.’s nominal GDP is approximately $30.5 trillion, ranking first globally. Recent U.S. Consumer Price Index data indicates a 2.9% year-over-year increase in food prices, demonstrating a steady demand for agricultural goods. Overall inflation is at 2.4%, with core inflation at 2.8%, reflecting stable economic conditions. Inflation and tariff policies are currently top concerns for U.S. consumers, along with international conflicts, political polarization, and sustainability. The U.S. economy shows signs of stability, with steady job growth, a 4.2% unemployment rate, and rising labor force participation. Business investment is projected to grow 3.4% in 2025, supported by strong spending in AI, automation, and software, despite some policy uncertainty. Key states driving agriculture and food production are California, Iowa, Nebraska, Texas, and Idaho, accounting for roughly a third of cash receipts for all farm commodities. The H-2A program, which helps American farmers fill employment gaps by hiring foreign workers, certified 384,900 positions in 2024, accounting for 17% of the agricultural workforce in the U.S.

Regulatory Landscape

U.S. regulatory agencies play key roles in agriculture and food products. The United States Department of Agriculture (USDA) sets federal policy on agriculture, food safety, and farm support, while ensuring animal and plant health. The U.S. Customs and Border Protection (CBP) inspects agricultural imports to block pests, diseases, and non-compliant goods. The U.S. Food and Drug Administration (FDA) regulates the safety, labeling, and nutrition of most food products under laws like the Food Safety Modernization Act (FSMA). The Environmental Protection Agency (EPA) oversees pesticide use and water safety to protect health and the environment. The Office of the United States Trade Representative (USTR) negotiates trade agreements and shapes market access for U.S. agricultural exports. These agencies also set and enforce labeling standards critical to market entry. Key labeling rules include mandatory bioengineered disclosures (starting in 2025) and strict organic and “Product of USA” claims.

Market Access & Trade Barriers

When entering the U.S., trade barriers, agreements, disputes, and border delays are key factors that affect market access. Non-tariff barriers (NTBs) like import quotas, licensing, technical standards, and sanitary and phytosanitary (SPS) rules can increase compliance costs and limit access, especially for smaller exporters. While stricter SPS standards promote safety and innovation, they also create technical hurdles and deepen inequalities. Ongoing tariff and NTBs escalation fuels deglobalization and threatens supply chains, increasing geopolitical tensions. The U.S.-Mexico-Canada Agreement (USMCA) supports balanced trade and job growth in North America, while the Indo-Pacific Economic Framework agreement aims to enhance resilience, fairness, and address SPS challenges. Anti-dumping and countervailing duties may apply if investigations find unfair pricing or subsidies. At the border, incomplete documentation can cause delays of a week or more, as CBP audits are increasingly uncovering costly compliance errors.

Strategic Entry Considerations

Potential market entry models include direct export, licensing, joint ventures, and establishing a U.S. subsidiary. Distribution in the U.S. spans retail, food service, B2B, and co-packers, with large agribusinesses relying on specialized ingredient distributors, and co-packers offering flexible support for smaller production. The U.S. market is led by key players across categories: Cargill, ADM, and Bunge in grains and oilseeds; Bayer, BASF, Syngenta, and Corteva in seeds; Dole, Del Monte, and Driscoll’s in fruits and vegetables; Unilever, Tetley, and Hain Celestial in tea and beverages; and General Mills, Danone, and major private labels in organic packaged goods. Another important consideration is consumer behavior. Younger consumers, particularly Gen Z, prioritize organic foods and are willing to pay a premium. The Make America Health Again (MAHA) movement is an emerging consumer trend focused on clean eating, holistic wellness, and preventive health. While still developing, it is influencing demand for organic, minimally processed, and functional foods among health-conscious American consumers. With inflation affecting consumer behavior, brand loyalty is not as strong as it was in the past.

Compliance Essentials

Compliance is critical for agribusinesses entering the U.S. market. Customs clearance requires accurate documentation, including HTS codes, country-of-origin labels, and CBP declarations for agricultural products. Foreign food facilities must register under the FDA’s Foreign Supplier Verification Program (FSVP) and submit prior notice before shipments arrive. Product liability is another key consideration, with insurance coverage recommended to protect against contamination, allergen exposure, or packaging failures. Intellectual property protection, including trademarks, utility and plant patents, and the Plant Variety Protection Act (PVPA) certificates, help secure innovations and prevent counterfeiting. While federal law governs customs, food safety, and labeling, individual states may enforce stricter regulations around organics, food additives, and GMO labeling, making multi-level compliance essential.

Government Engagement & Advocacy

Government engagement and advocacy go beyond lobbying to include helping businesses understand the political landscape and connect with policymakers. Further, government affairs can businesses manage legislative and regulatory risk. Key congressional committees like the House and Senate Agriculture Committees oversee farm programs and labeling. The House Ways & Means and Senate Finance Trade Sub-committees manage tariffs and trade agreements. Trade associations support lobbying efforts and grassroots campaigns, and advisory committees provide opportunities for input on trade and regulatory issues. Businesses can also influence policy by submitting comments or testifying during federal rulemakings or Congressional hearings. Federal programs, such as the Value-Added Producer Grants, offer financial support for marketing and product development. State agriculture departments and local economic offices provide permits, safety credentials, tax incentives, and infrastructure support. Regional export councils and State Trade Expansion Program (STEP) programs offer export counseling and compliance assistance to help companies expand in the U.S. market. However, many U.S. grant programs require the applicant to be a U.S.-based entity. The Export-Import Bank of the United States (EXIM), however, offers the Make More in America Initiative, which is open to qualifying foreign-owned companies operating in the U.S.

Investment & Operational Costs

The cost of doing business in the U.S. varies widely, with key considerations being cost of business, incentives or tax breaks, regional differences, and environmental, social, and governance (ESG) reporting. Agriculture and food sectors employ 10.4% of U.S. workers, with farm labor costs subject to payroll taxes and federal contributions. Tax obligations vary by state and locality, covering corporate income, sales, and property taxes. Real estate costs depend on urban or rural location, and some states restrict foreign ownership of farmland. Logistics expenses can be significant, making local partners crucial to ensure compliance with U.S. rules and regulations. Foreign agribusiness leaders can benefit from tax incentives that reduce costs on exports and research. USDA and state programs also offer funding, loans, and tax savings. Regionally, the Midwest excels in row-crop production with strong rail and river logistics, while the Southeast and Gulf regions offer top export ports and cold storage infrastructure. The West Coast and East Coast are key for high-value and perishable goods, though port congestion may affect efficiency. While ESG reporting is not federally mandated in the U.S., aligning with voluntary frameworks like the Sustainability Accounting Standards Board (SASB) or Global Reporting Initiative (GRI) is a growing standard in agribusinesses as many major food retailers and some states require ESG transparency.

Cultural & Business Norms

Americans value clear, concise, and assertive communication. Speaking up or disagreeing is seen as engagement, not disrespect. Meetings start and end on time, and efficiency is expected. Decision-making is typically individual or small-team driven, with brief, results-focused proposals. Formal agreements are essential, as oral deals are not relied upon. While U.S. companies may seem informal, they are performance-focused with clear accountability. Common missteps include underestimating compliance, assuming informality means a lack of rigor, moving too slowly, and entering without local U.S-based partners. Relationships are built through reliability and in-person networking at events.

Risk Assessment

Understanding and mitigating risks is crucial for a successful business. Political risks range from tariff volatility and protectionist campaigns to shifting geopolitical climates. Market risks involve commodity price swings, rising input costs, and evolving consumer demand. Regulatory risks span Transparency Act obligations, state-level rules, and tightening environmental and labor standards. Reputational risks stem from trade war narratives, compliance issues, and growing sustainability expectations.

Next Steps & Support: How Petra Global Affairs Can Help

Federal Policy & Regulatory Issues

We guide organizations through the intricacies of U.S. federal policy and regulatory landscapes, ensuring they stay ahead of legislative changes and compliance requirements.

Coalition Building & Stakeholder Engagement

We help trade associations form and strengthen industry coalitions, bringing together key stakeholders to drive collective action and achieve common policy objectives.

Strategic Policy & Regulatory Goal Setting

We work with trade associations to define clear policy and regulatory goals, aligning their strategies with industry priorities and government expectations.

Trade Missions & International Market Development

We organize trade missions and facilitate business development initiatives to help associations and their members explore new markets and expand their global footprint.

Grant Writing & Program Management

We assist organizations in securing federal funding, developing grant proposals, and managing grant programs to support industry growth and international outreach.

Entering the U.S. Market: A Brief for Global Agribusiness Leaders

Petra Global Affairs, LLC