US FARMERS continue to have access to credit to expand and improve their farms, despite the country's continuing financial crisis.

US Department of Agriculture chief economist Joe Glauber said while some lenders were tightening credit conditions, funds were still available.

"The presumption is that lenders are increasing certain requirements, but you've got to remember that a lot of producers are in better shape than those in other sectors of the economy," Mr Glauber said.

Speaking at the USDA's annual Agricultural Outlook Forum last week, Mr Glauber slashed $4.5 billion from the country's projected agriculture trade surplus for the 2009 financial year, bringing it to $13 billion.

Agricultural exports are expected to total just $95.5 billion, down from the $98.5 billion forecast in December, while imports are tipped to grow to $82.5 billion, up from the previously forecast $81 billion.

In better news, Mr Glauber said US farm debt was now equal to 9.1 per cent of total assets, compared to more than 20 per cent in the mid-1980s and 15 per cent in 1998.

He said farmers' asset values were not forecast to drop sharply, and the price of farm land had continued to climb in certain areas.

But Mr Glauber said US meat production would continue to decline, and tipped a drop of about 2 per cent this year.

He said meat producers had slowed output due to high feed costs and "uncertain" demand for meat in the US.

Meat prices are forecast to rise sharply at American grocery stores as a result.

Mr Glauber said the country's ethanol industry also remained under "significant financial pressure", crunched by high corn prices and low demand for the biofuel last year.

A number of US ethanol companies filed for bankruptcy last year and more are reported to be suffering from significant financial problems.

But ethanol production will continue to rise this year, driven by government mandates that require gasoline makers to blend more of the alternative fuel each year.

The USDA is currently in discussions with the US Environmental Protection Agency about lifting the cap on how much corn-based ethanol can be used in gasoline.

US agriculture secretary Tom Vilsack said lifting the current 10 per cent cap on the blend rate would "expand the market for ethanol at a time when it needs expansion".