Ag Policy

Xylazine Legislation Advances as Veterinarians Push to Protect Access

Fri, 27 Mar 2026 16:53:43 GMT

The Senate Judiciary Committee today advanced the Combatting Illicit Xylazine Act by a vote of 19–3, marking a significant step forward for bipartisan legislation aimed at addressing the growing role of xylazine in overdose deaths. The bill is led by Chuck Grassley (R-IA) and Catherine Cortez Masto (D-NV), and has drawn broad bipartisan support from lawmakers, veterinary organizations and federal agencies.

As momentum builds in Congress, veterinary leaders are working to ensure those efforts do not unintentionally disrupt animal care. The focus has shifted to how regulation can be implemented without restricting access for the veterinarians and producers who rely on the drug every day.

In the U.S. House Energy and Commerce Subcommittee hearing held Thursday afternoon, stakeholders from law enforcement, public health and veterinary medicine outlined the risks and realities surrounding xylazine use.

Xylazine’s Dual Reality

Xylazine occupies a unique position in the U.S. drug landscape. It is a widely used veterinary sedative with a long track record of safety and effectiveness, yet it has also emerged as a concerning component of the illicit drug supply, frequently detected alongside fentanyl and other opioids.

Its growing presence in human drug use has raised alarm among lawmakers and public health officials. Federal officials and lawmakers have pointed to the growing presence of xylazine in the illicit drug supply as a key driver of concern. Because xylazine is not an opioid, its effects are not reversed by naloxone, complicating overdose response and increasing risk.

At the same time, veterinary professionals emphasize its role in animal care is both established and difficult to replace.

Speaking during the hearing, Fred Gingrich, DVM, executive director of the American Association of Bovine Practitioners, underscored the need for balance:

“We believe this legislation represents a thoughtful, balanced and urgently needed solution that both addresses the serious human health threat and preserves access to this essential drug for legitimate veterinary use. The veterinary community is deeply concerned about the public health crisis caused by the rapid proliferation of illicit xylazine being found in combination with fentanyl and other opioids.”

A Cornerstone of Veterinary Practice

For more than five decades, xylazine has been a foundational tool in veterinary medicine, particularly in large animal practice. Its value lies not only in its pharmacologic effects but also in its practicality in real-world conditions.

“As a non-narcotic, FDA-approved veterinary sedative, xylazine has been used for over 50 years to facilitate the safe handling, restraint and treatment of a broad range of animal species. It is particularly important for use in livestock, zoo and wildlife species, as well as in research settings,” Gingrich says.

In cattle, its importance is even more pronounced. Effective sedation is not simply a matter of convenience — it is essential for safe handling, proper treatment and minimizing stress.

“In cattle, there is no safe practical alternative for sedation. Without xylazine, veterinarians and producers face significantly increased risks of injury, and animals may be subjected to unnecessary stress or harm during medical procedures,” Gingrich says.

The Risk of Regulatory Overreach

As concern about illicit xylazine has grown, so too has interest in bringing the drug under federal control. The U.S. Drug Enforcement Administration has indicated a desire to schedule xylazine under the Controlled Substances Act.

However, current law presents a critical limitation. The Controlled Substances Act does not allow the DEA to create exemptions for specific user groups, including veterinarians. Gingrich emphasizes administrative scheduling alone could restrict veterinary access, increase regulatory burden and disrupt supply.

“Administrative scheduling would unintentionally restrict how veterinarians use the drug and create burdensome regulatory barriers and jeopardize the continuing availability of the drug in the legitimate marketplace. A disruption in the availability of xylazine would have profound consequences,” Gingrich says.

Gingrich also notes supply constraints could amplify the impact of regulatory changes, with only a limited number of manufacturers currently producing the drug. In a low-margin market, additional regulatory or financial burdens could further threaten availability.

A Legislative Path Forward

The Combatting Illicit Xylazine Act would classify xylazine as a Schedule III substance under the Controlled Substances Act, enabling better tracking of its manufacture and distribution while strengthening enforcement against illicit use. At the same time, it includes provisions to ensure veterinarians, producers and researchers can continue to access the drug.

The bill also addresses how veterinary medicine differs from human healthcare, particularly in how drugs are prescribed, dispensed and used in real-world settings. In large animal practice, veterinarians often work with farm owners, employees and caregivers rather than a single individual patient and may rely on responsible on-farm use under veterinary oversight.

Support for the bill is broad, spanning veterinary organizations, law enforcement groups and federal agencies, reflecting a rare alignment across sectors.

What Is at Stake for Veterinary Practice

For veterinarians, the implications of the legislation not passing are immediate:

Increased risk of injury during handling and procedures
Reduced ability to perform timely and humane interventions
Greater stress on animals during restraint
Operational challenges for producers, particularly those with limited facilities

These risks extend beyond clinical settings, affecting the broader agricultural system where safe and efficient animal handling is essential.

Avoiding a Fragmented Approach

In the absence of federal action, several states have already begun exploring or implementing their own restrictions on xylazine. While well-intentioned, these efforts raise concerns about a potential patchwork regulatory system that could complicate compliance and disrupt supply chains.

A unified federal framework aims to prevent that outcome by establishing consistent standards while maintaining access for legitimate users.

Veterinary organizations, including the American Veterinary Medical Association and the AABP, have taken an active role in shaping policy discussions.

“Legislative action on xylazine is not only preferable, but it is essential. The legislation has been endorsed by all 50 state veterinary medical associations and numerous national stakeholder groups,” Gingrich says.

As lawmakers weigh next steps, the challenge is clear: addressing a growing public health threat without disrupting a long-established tool in veterinary medicine. Regulation must be precise enough to target misuse while preserving access to a drug that remains central to safe and humane animal care.

USDA Announces New World Screwworm Grand Challenge

Wed, 21 Jan 2026 21:52:07 GMT

Today, U.S. Secretary of Agriculture Brooke L. Rollins announced the launch of the N ew World Screwworm (NWS) Grand Challenge. This funding opportunity marks a pivotal step in USDA’s comprehensive strategy to combat NWS and prevent its northward spread.

“This is a strategic investment in America’s farmers and ranchers and is an important action to ensure the safety and future success of our food supply, which is essential to our national security,” Rollins says. “These are the kinds of innovations that will help us stay ahead of this pest and protect our food supply and our economy, protecting the way of life of our ranchers and go towards rebuilding our cattle herd to lower consumer prices on grocery store shelves. We know we have tried-and-true tools and methods to defeat this pest, but we must constantly look for new and better methods and innovate our way to success. Together, through science, innovation, and collaboration, we can ensure we’re utilizing the latest tools and technology to combat NWS in Mexico and Central America and keep it out of the United States.”

As part of the Grand Challenge, USDA’s Animal and Plant Health Inspection Service (APHIS) will make up to $100 million available to support innovative projects that enhance sterile NWS fly production, strengthen preparedness and response strategies, and safeguard U.S. agriculture, animal health, and trade.

Priority Areas for Funding

APHIS invites proposals that support one or more of the following objectives:

Enhance sterile NWS fly production
Develop novel NWS traps and lures
Develop and increase understanding of NWS therapeutics/treatments (i.e., products that could treat, prevent, or control NWS) for animals
Develop other tools to bolster preparedness or response to NWS

The notice of funding opportunity, including application instructions, eligibility, and program requirements, is available on the NWS Grand Challenge webpage . Applicants can also find information on the ezFedGrants website  or  Grants.gov  by searching USDA-APHIS-10025-OA000000-26-0001.  

Eligible applicants are invited to submit proposals that align with and support these priorities by the deadline on February 23, 2026, at 11:59 p.m. ET.

Entities interested in submitting a proposal should ensure they are registered with the  U.S. Government System for Award Management (SAM) . Learn more about the basics of the funding process and  how to get ready to apply .  

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As Screwworm Inches Closer, When Could the U.S. Reopen the Southern Border to Cattle Imports?

Tue, 06 Jan 2026 20:49:11 GMT

A newly confirmed case of New World screwworm (NWS) in northern Mexico is renewing concern among U.S. cattle producers and policymakers, as the parasitic fly continues to inch closer to the U.S.-Mexico border.

As reported by Drovers, on Dec. 27, Mexico’s National Service of Agro-Alimentary Health, Safety, and Quality (SENASICA) reported a case of NWS in a 6-day-old calf with an umbilical lesion in the municipality of Llera, located in the state of Tamaulipas. The location is approximately 197 miles south of the U.S.-Mexico border, and a reminder that NWS is still a high threat to the U.S.

Critical Timing with Calving Season Approaching

NWS, which was eradicated from the U.S. in the 1960s through an extensive sterile fly program, poses a serious threat to livestock. The larvae infest open wounds, feeding on living tissue and often leading to severe injury or death if untreated. Calving season is considered a particularly vulnerable period due to natural points of entry such as navels and birthing injuries.

Seth Meyer, director of the Food and Agricultural Policy Research Institute (FAPRI) and former chief economist for USDA, says the new case raises a tremendous amount of concern as USDA remains vigilant on keeping NWS out of the U.S. But Meyer says the growing proximity of NWS complicates already difficult decisions for cattle producers at calving season , which is a critical time of the year.

“There are concerns not just from a consumer standpoint, but also about whether southern producers are willing to retain heifers during calving season if there’s a risk of fly exposure,” he says. “Calving is a point of access for these animals, and that risk matters.”

Those decisions could have longer-term implications for herd expansion and cattle supplies, Meyer notes. If producers decide the risk is too great and opt against retaining replacement heifers, it could tighten supplies further down the road.

“That’s the last thing you want,” Meyer says. “You don’t want people giving up on retaining heifers and turning away from herd rebuilding.”

The Possibility of Reopening the Southern Border

The U.S. most recently closed its southern border to Mexican cattle imports in May of 2025 due to the rapid spread of NWS in Mexico. There were additional closures and reopenings in July 2025 as the situation evolved ultimately halting trade again to protect U.S. livestock.

Here’s a timeline so far:

November 2024: NWS was first detected in southern Mexico, leading to initial border closures and trade disruptions.
Feb. 1, 2025: A temporary ban was lifted after agreements for inspections.
May 11, 2025: U.S Secretary of Agriculture Brooke Rollins ordered an immediate suspension of imports due to NWS spreading closer to the border.
July 2025: A phased reopening began but was halted again after new NWS cases were found farther north, leading to another immediate closure of southern ports to protect American livestock.

Considering the cattle just south of the border are being vigilantly monitored and inspected, the bigger threat of NWS crossing the Southern border could be through wildlife . Still, as NWS gets closer, USDA is keeping the border closed and remaining cautious.

When could the U.S. reopen the border? That’s exactly what Farm Journal asked economists in the latest Ag Economists’ Monthly Monitor and the responses were extremely mixed. It’s important to note the survey was sent out prior to the most recent detection of NWS.

33% of economists say USDA could reopen the border in February 2026
25% say it could happen April through June
17% think the border could reopen July through September
And 17% were unsure.

For policymakers, the situation adds another layer of complexity as they balance animal health, trade and producer confidence. While officials stress that there is no immediate threat to the U.S. herd, the latest detection underscores the importance of surveillance, rapid response and continued cooperation between U.S. and Mexican animal health authorities.

As Meyer puts it: “There are a lot of balls in the air right now,” and preventing NWS from crossing the border remains a critical priority for the livestock industry on both sides.

Follow Farm Journal’s extensive coverage of the ongoing NWS situation.

Share Your Thoughts: APHIS To Host Animal Health Listening Sessions

Fri, 03 Oct 2025 11:46:05 GMT

POSTPONED: The Farm Bill Animal Health Program Listening Sessions that were scheduled for October 6, 7 and 8 have been postponed.

The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is advancing animal disease preparedness and response through its Farm Bill animal health programs. Beginning in fiscal year 2026, funding for these programs will increase to $233 million annually under President Trump’s One Big Beautiful Bill .

This includes:

$153 million per year for the National Animal Vaccine and Veterinary Countermeasures Bank ( NAVVCB )
$70 million per year for the National Animal Disease Preparedness and Response Program ( NADPRP )
$10 million per year for the National Animal Health Laboratory Network ( NAHLN )

APHIS will host three virtual listening sessions to gather stakeholder input on how these new funds should be used to strengthen national, regional, and local capabilities to prevent, prepare for, and respond to animal disease outbreaks. APHIS will use the feedback to inform future program planning.

Each session will focus on one of the three programs. While advance registration is not required, we encourage participants to submit their name and affiliation to help us plan and facilitate the sessions.

Listening Session Schedule

Monday, Oct. 6 | 2 to 3 p.m. ET
Topic: National Animal Health Laboratory Network (NAHLN)
Join the Listening Session on Teams or
Call-In: 202-650-0123; Phone Conference ID: 697 205 668#
Tuesday, Oct. 7 | 2 to 3 p.m. ET
Topic: National Animal Vaccine and Veterinary Countermeasures Bank (NAVVCB)
Join the Listening Session on Teams or
Call-in: 202-650-0123; Phone Conference ID: 440 983 713#
Wednesday, Oct. 8 | 2 to 3 p.m. ET
Topic: National Animal Disease Preparedness and Response Program (NADPRP)
Join the Listening Session on Teams or
Call-In: 202-650-0123; Phone Conference ID: 188 744 006#

To ensure as many participants as possible can speak, we ask that speakers limit their comments to 90 seconds or less.

Stakeholders are also invited to submit written comments before or after the events using the Farm Bill Funding Stakeholder Feedback Form . Written comments will be accepted through Oct. 15, 2025.

This is a valuable opportunity for all interested stakeholders to help shape the future of these critical animal health programs.

Mexico Confirms Case of New World Screwworm 70 Miles from U.S. Border

Mon, 22 Sep 2025 11:51:42 GMT

Mexico’s National Service of Agro-Alimentary Health, Safety, and Quality (SENASICA) confirmed a new case of New World screwworm (NWS) in Sabinas Hidalgo, located in the state of Nuevo León, less than 70 miles from the U.S.-Mexico border on Sept. 21.

USDA reports this is now the northernmost detection of NWS during this outbreak, and the one most threatening to the American cattle and livestock industry. Sabinas Hidalgo is located near one of the most heavily trafficked commercial thoroughfares in the world, the major highway from Monterrey, Nuevo Leon, to Laredo, Texas.

“Protecting the United States from NWS is non-negotiable and a top priority of the Trump Administration,” U.S. Secretary of Agriculture Brooke L. Rollins said in a release . “This is a national security priority. We have given Mexico every opportunity and every resource necessary to counter NWS since announcing the NWS Bold Plan in June 2025.”

Rollins says the U.S. will not rely on Mexico to defend U.S. agriculture.

“We are firmly executing our five-pronged plan and will take decisive action to protect our borders, even in the absence of cooperation,” Rollins said. “Furthermore, we will pursue aggressive measures against anyone who harms American livestock.”

The previous northernmost detection was reported approximately 370 miles farther south on July 9 in Veracruz, USDA reports.

SENASICA preliminary reports indicate the affected animal — an 8-month-old cow — had recently been moved to a certified feedlot in Nuevo León from a region in southern Mexico with known active NWS cases. USDA says this potential link to animal movement underscores the “non-negotiable need for Mexico to fully implement and comply with the U.S.–Mexico Joint Action Plan for NWS in Mexico.” U.S. ports remain closed currently to imports of cattle, bison, and horses from Mexico.

USDA has been actively monitoring nearly 8,000 traps across Texas, Arizona and New Mexico. More than 13,000 screening samples have been submitted to date, with no NWS flies detected. USDA said it will continue to analyze all new information related to the recent case in Nuevo León and will pursue all options to release sterile flies in this region as necessary.

As well, USDA will release a significant plan soon to help rebuild the American cattle supply, incentivizing ranchers and driving a full-scale revitalization of the American beef industry, the release said.

USDA Leads An Aggressive National Response
USDA reports it’s comprehensive strategy includes the following immediate actions:

Innovating Our Way to Eradication
USDA is investing $100 million in breakthrough technologies through the NWS Grand Challenge. This program will solicit ideas to enhance sterile fly production and develop new tools such as advanced traps, lures and therapeutics. USDA says it’s also exploring and validating technologies like e-beam and x-ray sterilization, genetically engineered flies, and modular sterilization facilities through public listening sessions and ongoing evaluations.
Protecting the U.S. Border
USDA has begun construction on a domestic sterile fly dispersal facility at Moore Air Force Base in Edinburg, Texas. This $8.5 million facility, expected to be mostly complete by the end of 2025, will be capable of dispersing up to 100 million sterile flies per week, USDA says. The U.S. Army Corps of Engineers is working with USDA on plans for for construction of a domestic sterile fly production facility in Southern Texas, with a projected capacity of 300 million sterile flies per week.
Strengthening Surveillance and Detection
USDA has been actively monitoring nearly 8,000 traps across Texas, Arizona and New Mexico since July. To date, more than 13,000 screening samples have been submitted, with no NWS flies detected. USDA continues to disperse 100 million sterile flies per week in Mexico, sourced from the COPEG facility in Panama. In addition, USDA is providing support to Mexico to renovate a production facility in Metapa, which is expected to produce an additional 60–100 million sterile flies.
Enhancing Public Awareness and Education
APHIS has published an updated national disease response strategy and is providing training and webinars for federal, state, Tribal and veterinary partners. Outreach materials, including pest ID cards and alerts, are being distributed along the U.S.–Mexico border. APHIS has held over 50 stakeholder meetings and continues to expand outreach efforts.
Coordinating with Mexico and International Partners
Following detections in Oaxaca and Veracruz, USDA closed southern ports of entry to livestock trade after a case was reported 370 miles from the U.S. border. USDA is conducting monthly audits of Mexico’s NWS response and is helping the country develop a more risk-based trapping plan, especially in Veracruz and along the border. Mexico currently deploys traps in high-risk areas, with USDA support.

USDA is supporting hiring of over 200 surge staff for trapping and animal movement control in Mexico. As well, SENASICA has launched a dashboard that tracks NWS cases across Mexico. This enhances USDA’s ability to monitor the situation south of the border, better assess risk, and deliver more effective operational responses in coordination with Mexican authorities.
Unprecedented Interagency Collaboration
Collaborating agencies include: Centers for Disease Control and Prevention, Food and Drug Administration, Department of the Interior, Department of Energy, Department of Homeland Security, Environmental Protection Agency, and the Department of State. This collaboration is guided by the U.S. One Health Coordination Unit for NWS (U.S. OHCU–NWS), co-led by USDA, CDC, and DOI, the release said.

Watch Out for Signs of NWS
NWS maggots most often enter an animal through an open wound and feed on the animal’s living flesh. They can infest livestock and other warm-blooded animals, including people.

USDA urges residents on the southern border to check their pets and livestock for signs of NWS .

“Look for draining or enlarging wounds and signs of discomfort,” USDA said. “Also look for screwworm larvae (maggots) and eggs in or around body openings, such as the nose, ears, and genitalia or the navel of newborn animals. If you suspect your animal is infected with screwworm, contact your state animal health official or USDA area veterinarian immediately.”

Although not common in people, if you notice a suspicious lesion on your body or suspect you may have contracted screwworm, seek immediate medical attention.

Could EPA Decision Signal The Beginning Of The End For DEF?

Thu, 31 Jul 2025 16:28:35 GMT

Mike Berdo has strong words to describe his ongoing experiences using machinery requiring DEF ( Diesel Exhaust Fluid ) on his southeast Iowa farm.

“It has been an absolute nightmare, at least for us. Mechanics make trip after trip to do little stuff that’s very expensive to fix,” said Berdo, who produces grain and beef cattle near Washington. “We had planting delays last spring … little stuff that came from it and just seemed like [an issue to deal with] day after day.”

The ongoing mechanical issues and costs are why Berdo said he is “all for” EPA rescinding the 2009 Greenhouse Gas Endangerment Finding. The Finding has enabled the agency to regulate greenhouse gas emissions under Section 202 of the Clean Air Act and, in recent years, and launch requirements such as the use of DEF systems in diesel-powered engines.

EPA Draws A Line In The Sand
On Tuesday, EPA Administrator Lee Zeldin released a proposal to rescind the 2009 Finding.

If finalized, the proposal would remove all greenhouse gas standards for light-, medium- and heavy-duty vehicles and heavy-duty engines, EPA said in a follow-up press release .

The move would start with EPA’s first greenhouse gas standard set in 2010 for light-duty vehicles and those set in 2011 for medium-duty vehicles and heavy-duty vehicles and engines.

EPA said the proposal is expected to “save Americans $54 billion in costs annually through the repeal of all greenhouse gas standards, including the Biden EPA’s electric vehicle mandate, under conservative economic forecasts.”

Zeldin made the announcement to rescind the Finding in Indiana, alongside Energy Secretary Chris Wright, and called it the largest deregulatory action in U.S. history.

What The Decision Could Mean To Farmers
Specific to U.S. farmers, the proposal could potentially result in DEF systems no longer being included on new tractors and other heavy equipment using diesel-powered engines, said Chip Flory, host of AgriTalk, during a Farmer Forum discussion on Wednesday.

South Dakota farmer Ryan Wagner told Flory he has a wait-and-see perspective on how or whether the EPA proposal goes into effect. He anticipates that reversing the Finding will take considerable time and effort for EPA to implement.

“It took a long time with the interim engines and things to get into full DEF in the first place,” Wagner said. “I don’t know how long it would take to unwind all that and how quickly manufacturing will just take those systems right off, but it’ll be interesting to see what happens.”

To Wagner’s point, here’s a brief look back at some timing showing when DEF rolled out in agriculture and nonroad equipment and became mandatory . The regulations were phased in over several years based on the type of equipment and engine size:

2008: DEF became required for all new diesel engines with engine sizes over 750 horsepower.

2011: the regulations expanded to include equipment with engine sizes between 175-750 horsepower.

By 2015, all new nonroad diesel engines were required to be Tier 4 compliant and utilize DEF, regardless of equipment type or engine size.

As Wagner considers DEF, he noted its use in diesel engines has provided him with one benefit: “On the plus side, I do like that they don’t make the walls of my shop black. That’s been nice,” he said. “You can run them inside for a short time and not not feel like you’re breathing in a bunch of soot and making everything black.”

Expect Legal Challenges To EPA Decision
A number of environmental groups have already blasted the move by EPA, saying it spells the end of the road for U.S. action against climate change, according to an online article by Reuters .

Legal challenges from various environmental groups, states and lawyers are likely ahead.

That fact wasn’t lost on Flory and the Farmer Forum participants during the AgriTalk discussion on Wednesday.

“If this proposal is finalized, it’s going to start a lot of conversations … and the dominoes are going to start to fall, something that we need to keep track of, no doubt,” Flory said. You can hear the complete Farmer Forum discussion on AgriTalk here:

EPA will initiate a public comment period to solicit input. Further information on the public comment process and instructions for participation will be published in the Federal Register and on the EPA website .

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No One is 'Winning' in a Prop 12 World: 6 Witnesses Testify Before House Ag Committee

Thu, 31 Jul 2025 16:44:46 GMT

U.S. pork producers and American consumers are facing significant cost increases due to Proposition 12. And the data keeps proving it. In a House Committee on Agriculture hearing, “An Examination of the Implications of Proposition 12,” Committee Chairman Glenn “GT” Thompson (R-PA) said Congress must provide a fix for Prop12.

“It begs the question – if producers are paying more, and consumers are paying more, who is winning?” Thompson said during the hearing on July 23. “Thankfully, the complexity and unfairness of Prop 12 has been realized by both sides of the aisle.”

Six witnesses testified before the full House Agriculture Committee on the implications of California’s Proposition 12 for farmers and food prices.

Overregulation Hurts Farmers
Pat Hord, an Ohio pork producer and vice president of the National Pork Producers Council (NPPC), shared his family farm’s story with the Committee. He said, “Despite producing Prop 12-compliant pork, I am here to say Prop 12, and an unmitigated regulatory patchwork, threatens our farm.”

Prop 12, a California ballot initiative, bans the sale of pork that does not comply with the state’s prescriptive and arbitrary production standards. Though enacted in a single state, Prop 12 has created sweeping consequences nationwide by fueling market volatility, imposing costly new mandates on producers, and paving the way for a patchwork of inconsistent state regulations.

“Spending my entire life raising pigs in a variety of ways, I’m convinced it’s best to allow production methods and consumption demands to take shape in the open market, as opposed to arbitrarily shaping them through poorly worded and short-sighted ballot initiatives,” testified Matt Schuiteman, a farmer and Iowa Farm Bureau board member.

The data shows Prop 12 is creating economic hardship. As of the first quarter of 2025, 12% of small pork operations have exited the market or shifted production away from breeding, citing regulatory uncertainty and high transition costs.

“Prop 12 opens a Pandora’s box of state regulatory overreach that threatens family farms across the country,” NPPC shared in a statement. “This overregulation hurts farmers, increases prices for consumers, and compromises our nation’s food security.”

Unjustified Price Increases
But it wasn’t just pork producers voicing their concern at the hearing over the obstacles caused by Prop 12.

“Harm is what Prop 12 has caused, smashing like a wrecking ball the livelihoods of small restaurants and the communities we serve by disrupting supply chains and dragging up the cost of culturally vital foods like pork,” said Lily Rocha, executive director for the Latino Restaurant Association. “It’s brought economic devastation to families already stretched thin.”

Rocha said Prop 12 is a death sentence for small businesses operating on razor-thin margins.

NPPC economist Holly Cook testified that USDA research and recent scanner data confirm the impact on consumer costs.

“A study released in 2024 by economists at USDA’s Office of the Chief Economist compared retail pork prices and volumes in California and the rest of the U.S. for a period preceding Proposition 12 (October 2019-June 2023) and for 8 months after its partial implementation date (July 2023-February 2024),” Cook said. “After subtracting any price increases that were also observed in the rest of the U.S., the study attributed the following prices increases in California to the impact of Prop 12: 41% increase in pork loin prices, 17% increase in pork rib prices, 17% increase in pork shoulder prices, 16% in bacon prices, and 20% increase in fresh ham prices. Overall, the report suggests a 20% average increase in the sales prices for pork products covered by Proposition 12 and minimal impacts on products not covered by the law, such as sausage.”

Recent retail data also revealed a decline in pork volume sales in California and a 2% to 3% decline in California’s share of national fresh pork sales. Retail scanner data compiled by Circana confirms that these trends have held up over subsequent periods, Cook added.

“From July 2024 to June 2025, the second year of Proposition 12’s partial implementation, prices for popular covered pork products in California were 24% higher on average, with a range of 12% to 33% higher across covered products, than they were in the year leading up to implementation (July 2022 to June 2023),” Cook said. “This compares to an average 3.6% increase for the entire U.S. over the same period.”

In short, Californians are spending more but consuming less pork than they were before Prop 12.

A Contentious Issue
Tiffany Dowell Lashmet, professor and Extension specialist at Texas A&M AgriLife Extension, noted the importance of recognizing that there are agricultural interests on all sides of the Prop 12 debate.

“Certainly, there are agricultural producers, groups and businesses in favor of congressional action to overturn Prop 12,” she said. “Similarly, there are agricultural producers, groups and businesses strongly against Congress taking such action, many of whom have already gone to the expense to comply after Prop 12 was passed and upheld by the U.S. Supreme Court.”

Ranking Member Angie Craig (MN-02) pointed out during her comments that Prop 12 is clearly a contentious issue, and merits thoughtful, bipartisan discussion.

“We cannot ignore the questions and challenges Prop 12 raises,” Craig said. “Even the Biden administration’s ag secretary said we need to treat this issue seriously to ensure stability in the marketplace. I agree that we cannot have 50 states with 50 different regulatory frameworks because of the significant challenges it would present to producers, but I believe that there are ways to avoid that situation.”

She also shared that many pork producers have made significant financial investments to make their operations Prop 12-compliant and that Congress needs to be mindful of the voters in California who exercised their rights under their state constitution to adopt this policy.

Thompson reminded the room that Justice Gorsuch noted several times in the majority opinion that Congress would be well within its power to act. Although Thompson doesn’t agree with the Supreme Court’s decision to uphold Prop 12, he agrees that Congress can and must act to rectify the burdens Prop 12 has imposed on interstate commerce.

Travis Cushman, deputy general counsel, litigation and public policy for the American Farm Bureau Federation, said in his testimony, “When a single state can condition access to its market on compliance with production mandates that override the judgment of veterinarians, farmers and experts nationwide, Congress must act. This is not a theoretical concern. It is already harming farmers, confusing the courts and threatening the viability of a national food system.”

Cushman believes the language that the Committee passed in the 2024 Farm Bill restores clarity, restores congressional authority and interstate commerce, and protects both producers and consumers from a patchwork of conflicting amenities.

The Patchwork Problem
“When we talk about any premiums that do exist in the market today, the prospect of a patchwork threatens the certainty and the sufficiency of those premiums in the long run,” Cook said following the hearing. “NPPC is seeking to provide certainty to all producers about the environment in which we’re going to be making these decisions and investing in the future of the industry.”

Cook said it was a long day on Capitol Hill, but it was encouraging to hear producers share just how much they care about the animals they raise.

In fact, Hord spoke to misconceptions that Prop 12 enhances animal welfare, citing American Veterinary Medical Association and American Association of Swine Veterinarians opposition to the law and how those pen requirements can “unintentionally cause harm” to animal welfare.

“There were some good discussions around producers caring for their animals and maximizing animal welfare, not only because it’s the right thing to do, but because they have every economic incentive to do everything they can to maximize animal welfare,” Cook reflected.

She noted there were productive discussions on the impacts of Prop 12 from the farm level through the supply chain and all the way to the consumer.

“Producer voices are so strong,” Cook said. “Being able to deliver their stories to their representatives and members of Congress on the impact these issues are having on their farms is always the strongest message lawmakers can receive.”

Increased I-9 Audits Forcing Dairies to Fire Employees, Exposing Immigration Flaws; There is a Short-Term Fix

Wed, 16 Jul 2025 11:08:32 GMT

Nervousness and frustrations are spreading across the dairy industry. It’s not U.S. Immigration and Customers Enforcement (ICE) raids causing the uneasiness. There’s now an increase in I-9 audits targeting dairies.

At least nine dairies were targeted with I-9 audits over the weekend, according a source in the dairy industry. That follows a South Dakota dairy who was surprised by an audit earlier this month. With reported flaws in the E-Verify system, the audits are resulting in dairies being forced to fire employees who are found to have illegal documents and only given 10 days to do so.

“I’ve heard it from both Texas and South Dakota dairy producers that they are having I-9 audits,” says Rick Naerebout, CEO of the Idaho Dairymen’s Association. “Uncertain as to the timing if these audits were triggered before Trump came out and said he was going to pause enforcement on farms. Really, we haven’t seen the same level of enforcement on farms since he came out a few weeks ago and made those public statements. You’ve had some other public statements that have somewhat conflicted that, but it does feel like there’s a different posture from this administration right now.”

There have been reports of ICE raids in other areas, but the increase in I-9 audits is isolated to mainly two states: South Dakota and Texas so far.

“Honestly, what’s a little bit curious about that is those are both red states, and there seems to have been a focus more on blue states and red states. And you, one of those states seems to be the [Secretary Noem’s] home state,” he adds. “So, there’s some curiousness to it all. I’m really not sure what’s triggering these I-9 audits. Typically, our experience in Idaho when we’ve had a dairy producer go through an I-9, it’s usually triggered by a former employee complaining after they’ve been let go. That’s been kind of the trigger is somebody complaining and then DHS coming in and and conducting an I-9 audit after there’s been an accusation of employment of unauthorized individuals, but really not sure, you know, what triggered these in those two states.”

What the Dairy Industry is Pushing to Change

Even though it seems to be isolated to South Dakota and Texas, it’s creating a nervousness on dairies across the country. And that’s because of the increased issues it’s causing with labor.

The dairy industry seems to be on an island when it comes to finding a legal workforce. Dairies aren’t seasonal, therefore they can’t utilize H-2A , and that’s something the dairy industry is pushing to change.

John Boelts, an Arizona farmer who’s also president of Arizona Farm Bureau, says the farther you get from the border, the more challenging it is to find enough labor within agriculture.

“We need programs that really address what we need in agriculture as far as on a labor basis,” Boelts says. “Many will point to H-2A and say, ‘Well, you have an uncapped H-2A guest worker program,’ and that’s a valid point. However, I’d like to point out that H-2A was designed very keenly not to work very well, to be cumbersome, challenging, expensive, all of the things that don’t fit very well into an agricultural model. That said, it’s the lifeline that American agriculture has today.”

H-2A is a program widely used in agriculture, but one that has drawn criticism for not only the rising cost, but also how complex it is. Those in agriculture argue the system, as it exists today, doesn’t do enough to cover the vastness of American agriculture. That includes dairy farms, dairy processors and produce processors.

And while H-2A is far from perfect, the dairy industry can’t use H-2A today, the one guest worker program that does exist, according to Donald Grady, the senior director of legislative affairs at the international dairy foods association.

“The H-2A program, while it works for large swaths of agriculture doesn’t work for dairy. And because of the fact that dairy is a 365-day-a-year operation, it doesn’t matter — Christmas, New Year’s, your birthday — cows must get milked. And that milk needs to get processed for Americans to safely consume it,” Grady says. “So we are looking to be able to expand the H-2A program so that dairy operations on-farm and in the plant can have another tool in their toolbox to meet their labor needs.”

Changes Are Needed to H-2A to Include Dairies

Grady says for dairy to be able to use the H-2A program in the U.S., the seasonality requirements in the program would need to change to year round. That’s one fix.

“But for processors, we need another specific change, and that is a change to the definition of agriculture, labor and services,” Grady says. “Right now, it does not include processing that does not happen on the farm. So, if you’re on a farm like a packing house for a fruit and vegetable operation, you can still use H-2A workers in that packing plant. But if that packing plan were just across the street and not on the farm, you couldn’t use those workers there. Dairy, obviously, the processing is largely located away from the farm. And so for us to be able to access H-2A, we need to change the definition of ag labor and services so that processing can be included.”

It’s a short-term fix, for what the dairy industry calls a long-term problem. Labor issues have plagued the dairy industry for decades, and it’s a situation that’s only getting worse.

“We need to figure out how we can simply improve our labor pool so that we can meet the needs that we have,” Grady says. “I think as we hear from our IDFA members across the board, we are down about 10% on our labor needs. That accounts to thousands and thousands and thousands of workers. When you look at the fact that we are over 3 million in the dairy manufacturing, retail and marketing side. So when you’re looking at just in the plant, that’s thousands of workers that we need. And this is a tool that would be able to help us in the immediacy.”

There is Momentum for Change

Even though there’s an increase in I-9 audits on dairies, leaders within the dairy industry say for the first time in nearly two decades, there does seem to be momentum for changes to the H-2A program and address the pain points with the current immigration system.

“You do hear some really good things coming from the administration right now about trying to solve the farm labor crisis, and it’s never had this amount of focus from any president, serious amount of focus, and it feels like there’s a serious amount of focus and an earnest desire to try and do something to solve our problem for us, which is a blessing,” Naerebout says. “We’ve been rebuffed by both Republican and Democrat presidencies in the past. We’ve been rebuffed by Republican and Democratic controlled Congresses, and to have a president take this issue on and begin to try and address it, and he and some of his secretaries have taken some pretty strong heat for for trying to solve this problem from his base, but he seems to be really, you know, earnest in trying to find a solution for us.”

E-Verify System is Also Exposing Flaws

One dairy operation was forced to fire nearly 40 employees, as they still scramble to find employees to back fill those jobs. That’s creating a new concern: Are the labor shortages a matter of animal welfare?

“I don’t think we’re quite there,” Naerebout says. “That’s always a concern, especially if you have a number of these audits that happen in a given area, and if you see a response like we saw in New Mexico a month or two ago where the response to that I-9 audit seemed to be DHS showing up and, you know, hauling workers away. That’s new.”

It’s not like these dairies are knowingly hiring individuals with false records. All dairy farms are required to use the E-Verify system, but the recent focus on finding illegal immigrants has exposed another issue: The E-Verify system is also flawed.

It’s a system that’s been used for more than two decades. For employers to make sure they are hiring legal immigrants, they use E-Verify, which is a government program that verifies those employees are authorized to work in the U.S.

In other words, these dairy operations are hiring employees who have been vetted through the E-Verify system. Yet, once an I-9 audit happens, it’s exposing that some of those employees submitted either illegal paperwork, or forms that weren’t theirs. And there’s no way for a dairy to know. That’s what the E-Verify system is meant to do.

It’s a long-standing frustration for dairies who’ve always been exposed to I-9 audits. It’s just until recently, the I-9 audits haven’t been as frequent.

“I definitely feel it’s flawed,” Naerebout says. “We also feel very strongly that it should not be on the employer to determine legal status of people in the country. That should be the job of the federal government. They shouldn’t be putting that on any employer, whether it’s agriculture or any other sector of the economy. That’s an unfair burden to put on the employer.”

What Needs to Happen Long-Term to Fix the Immigration System for Agriculture?

What needs to happen in the long-term? That solution lies with Congress. In order for the U.S. to address immigration laws that were written in 1986, it will take an act of Congress.

“We need to figure out how we can create a system that benefits our farmers by giving them access to workers and benefits the workers so that they can be able to cross the border legally and safely without having to feel like they’re going to get trapped in their home country and not be able to come back and work or feel as though they have to use different means to try and get into this country,” Grady says.

“We need a system that would benefit workers just as much as employers, but it’s the employers who need the workers for sure,” Boelts says.

The reality for growers like Boelts is no matter how high of wages producers pay, they are having more trouble finding the labor needed to fuel the U.S. with fresh produce and food.

“The challenge is for the American consumers, they need to look at it from a fairness standpoint,” Boelts says. “A worker working in Mexico harvesting broccoli or lettuce that then is shipped into the United States, might make $20 a day. Where we’re often offering around $20 plus an hour to work here in the United States. So it just doesn’t make sense. There’s really no reason why we shouldn’t be producing for the U.S. market right here in the U.S.”

Agriculture argues Congress needs to step in. Boelts says he is appreciative for an administration that is listening to farmers. So, what would Boelts tell the Trump administration when it comes to immigration? It’s this:

“I would ask the president and Secretary Rollins to take on a position of leadership, speak to both Republicans and Democrats in the House and Senate, and say, ‘Look, you’ve been hearing about this for years from farmers and ranchers all over the country. We all know what needs to happen. We need to reform agricultural workers, the public policy governing folks coming into the country, both temporarily and permanently. We need options for agricultural producers.’”

Boelts says the solution can’t just be the argument that there is a temporary guest worker program that exists today, because that system is been broken.

“We have cows that need to be milked, livestock that needs to be tended day in and day out, sometimes year round, sometimes temporarily. We needed a program that’s designed to work for American agriculture, period,” Boelts says.

Naerebout agrees that even with the headlines focused on ICE raids, and now increased audits, President Donald Trump is listening to farmers and fixing what many argue is a broken immigration system, and we might finally see some solutions.

“We’ve not had this kind of traction with an administration ever on this issue,” he says. “Maybe Reagan, but I was 7 years old when Ronald Reagan worked on this issue back in 1986, so I can’t really speak to what the mood was then, but we’re cautiously optimistic here in Idaho. We’re watching what the president’s saying, we’re continuing to stay in close contact with our Senate and congressional offices to continue to make sure that when they get the opportunities to put a bug in the president’s ear, and anybody in the administration’s ear about our needs, that that’s happening.”

Naerebout says after 20 plus years, he thinks agriculture finally has a legitimate chance on solving a problem that’s been plaguing the industry. And that solution needs to not only come from the White House, but the long-term fix needs to be addressed by Congress.

Rollins Rolls Out 5-Point Plan to Contain New World Screwworm

Wed, 18 Jun 2025 19:02:02 GMT

Today Secretary of Agriculture Brooke Rollins announced a five-pronged plan to combat New World screwworm (NWS) – a pest that would devastate ranchers if it made its way across the border.

Rollins made her announcement at the Moore Air Base facility near Edinburg, Texas. Moore was instrumental as a sterile fly production lab to rid the U.S. of NWS in the 1960s and 1970s. Hundreds of millions of flies were reared, sterilized with radiation and dropped from aircraft to eliminate the parasitic pest that preyed upon wildlife and livestock. According to a USDA spokesperson it will cost an estimated $8.5 million to get the base up and running as a distribution facility.

U.S. Secretary of Agriculture Brooke Rollins this morning launched an $8.5 million sterile New World screwworm (NWS) fly dispersal facility in South Texas and announced a plan to enhance USDA’s already robust ability to detect, control, and eliminate this pest.

(U.S. Department of Agriculture)

According to the Texas Wildlife Association , there are currently more than 1,800 cases of livestock infestation in southern Mexico. The flies are moving north and are currently 600 miles from the south Texas border.

“We have defeated the screwworm before, and we will do it again,” Rollins says.

Here in McAllen, TX to announce a BOLD 5-pronged plan to combat the deadly parasite called New World Screwworm – which would devastate ranchers if it made its way across the border.

We are protecting producers, strengthening biosecurity, and ALWAYS standing up for American… pic.twitter.com/VHOlqZyZ9a
— Secretary Brooke Rollins (@SecRollins) June 18, 2025

Her five-pronged plan to combat NWS includes:

Stop the pest from spreading in Mexico.
Rollins plans to continue partnering with her Mexican counterparts and using sterile insect technology to stop the spread. This includes investing $21 million to produce up to 100 million additional sterile flies weekly.

“We are first enhancing the international sterile fly production and investing $21 million in renovation of an existing fly facility in southern Mexico, which will provide up to 100 million additional sterile flies every week to stop the spread,” Rollins says.

Currently, the only sterile fly facility is located in Panama. It’s jointly run by the Panamanian government and the U.S. government. USDA had previously announced its plan to invest in the retrofiting of a fruit fly facility in Chiapas, Mexico, to produce additional sterile flies.

According to the National Cattlemen’s Beef Association , “The Chiapas facility produces about 117 million flies per week, but to form an effective barrier along the U.S. southern border, we need upward of 300 million sterile flies per week.”
Protect the U.S. at all costs.
Rollins temporarily closed the southern border to live animal imports and intercepting illegally introduced livestock. USDA is working closely with Mexico to improve surveillance.

“I do believe we have met and moved into a new era of productive partnership —perhaps better than ever before — with our Mexican counterparts,” Rollins says.
Maximize our readiness.
This will be achieved by partnering with state animal health officials to update emergency management plans and stockpile therapeutics for ranchers.
Take the fight to the screwworm.
The domestic fight includes establishing a sterile fly dispersal facility at Moore Air Base. Rollins says they are exploring options for building a domestic production facility at Moore that could produce up to 300 million sterile flies per week.

“We can’t get a brand new facility up and running probably before two or three years. So, that’s why we’ve got to really focus on the today,” Rollins explains.

She also announced USDA will be hosting listening sessions in affected areas starting next week.
Innovate Our Way to Eradication.
Leverage the sound science including USDA’s Agriculture Research Service (ARS) to continue to quickly develop novel treatments, preventatives and response strategies. Rollins says this includes working with land grant universities in Texas, Arizona and New Mexico. She listed these key strategies during the press conference:
- Develop better fly traps and lures
- Provide local training
- Improve surveillance methods
- Create new response strategies

Nearly 80 lawmakers led by House Ag Committee Chair Glenn “GT” Thompson (R-Pa.) sent a bipartisan letter on Tuesday to Rollins urging immediate action and promising congressional support for the significant funding required.

The letter included this message, “When looking solely at the historical impact of NWS in Texas, USDA’s Animal and Plant Health Inspection Service (APHIS) estimates a contemporary outbreak would cost producers $732 million per year and the Texas economy a loss of $1.8 billion. Extrapolating those results to the states within the historic range of NWS pre-eradication, a contemporary outbreak of NWS could cost producers $4.3 billion per year and cause a total economic loss of more than $10.6 billion. This does not account for the possible expansion of NWS beyond the historic range.”

U.S. Congresswoman Monica De La Cruz (R-Texas) was at the announcement and recently shared in a letter to Rollins these key advantages of the Moore Air Base location:

Border proximity: The proximity to the border with Mexico is crucial for effective monitoring and control of potential incursions of invasive fly species. A facility in this region would allow for rapid response and containment, minimizing the spread of infestations into the U.S.
Existing agricultural infrastructure: The region boasts a robust agricultural sector with established infrastructure and expertise in livestock management. This existing framework would facilitate efficient integration of the sterile fly facility and streamline its operations. Additionally, Moore Air Base has operations runways equipped to distribute sterile flies.
Strategic location: Moore Air Base offers a central location for distribution of sterile flies to other areas in the southern U.S., if such a need arises. Additionally, this base was the site of a facility used in the 1960s to successfully combat NWS.
Economic impact: The establishment of such a facility would provide valuable economic opportunities for the region by generating jobs and stimulating local economies.

U.S. Congressman Ronny Jackson (R-Texas) summarized at the announcement, “This is important to the whole country. We are going to be aggressive about this, and we are going to make sure that we don’t get screwed by the screwworm.”

Your Next Read: Urgency in Action: We Must Eradicate New World Screwworm

A Big Step Toward Better Milk Options for Kids

Thu, 05 Jun 2025 14:45:37 GMT

The Senate Committee on Agriculture, Nutrition and Forestry took a key step toward expanding milk choices in schools today, advancing the Whole Milk for Healthy Kids Act by voice vote. The bipartisan legislation, which has already cleared a House committee, would allow schools to once again offer whole and 2% milk, options currently excluded under federal school meal rules in place since 2012.

The National Milk Producers Federation (NMPF) applauded the committee’s action, calling it a crucial move toward improving childhood nutrition and giving schools greater flexibility to serve nutrient-dense dairy products.

“The Whole Milk for Healthy Kids Act is about making informed, science-backed decisions that prioritize the health and future of our children,” says Gregg Doud, NMPF president and CEO. “We’re grateful that this common-sense legislation has received such strong support from both sides of the aisle.”

The bipartisan bill, sponsored by Sens. Roger Marshall, R-Kan., Peter Welch, D-Vt., Dave McCormick, R-Pa., and John Fetterman, D-Pa., would give schools the option to serve whole and 2% milk — choices that are currently not allowed under federal school meal guidelines established in 2012. Those rules restrict milk offerings to 1% and fat-free varieties.

If enacted, the legislation would mark a significant shift in school nutrition policy. Whole and 2% milk are the most commonly consumed varieties at home and have been shown to be more satiating for children while still delivering the same 13 essential nutrients, including calcium, vitamin D and high-quality protein.

“Passing the Whole Milk for Healthy Kids Act will allow more schoolkids to access essential nutrients in their diets, and that’s something everyone can get behind,” Doud adds.

Support for the legislation extends beyond the dairy sector. The American Farm Bureau Federation (AFBF) also welcomed the committee’s action.

“Farm Bureau appreciates the Senate Agriculture Committee’s markup and passage of the Whole Milk for Healthy Kids Act,” says Zippy Duvall, AFBF president. “This bipartisan legislation will allow schools to offer additional nutritious milk varieties to students. Whole and 2% milk, as well as flavored options, are wholesome choices for children and an important building block for a healthy, balanced diet.”

The legislation is rooted in efforts to address declining milk consumption in schools. Since the removal of whole and reduced-fat milk from school menus more than a decade ago, overall milk intake among students has dropped. Advocates say reintroducing these options could help reverse that trend, especially at a time when nearly 90% of Americans fall short of recommended dairy intake levels.

“By offering milk options that align with both modern nutritional research and student preferences, schools can increase milk intake at a critical time,” Duvall says.

The House of Representatives is also considering companion legislation, led by House Agriculture Committee Chairman GT Thompson, R-Pa., and Rep. Kim Schrier, D-Wash. That version passed out of the House Education and the Workforce Committee with bipartisan support earlier this year and now awaits floor action. A similar bill cleared the full House in 2023 but failed to reach the Senate floor before the session ended.

With momentum now building in both chambers, dairy organizations are urging lawmakers to bring the bill to a final vote. The National Milk Producers Federation continues to call on dairy advocates to contact their representatives and push for the bill’s passage.

Your Next Read: New Federal Milk Marketing Order Reforms Take Effect

U.S. Cattle Industry Urges Mexico's Border to Remain Closed Over Spread of New World Screwworm

Tue, 13 May 2025 20:26:20 GMT

New World screwworm (NWS) has been detected in Mexico only 700 miles from the U.S. border. With the impending threat, National Cattlemen’s Beef Association (NCBA) says it’s not a matter of if the U.S. gets the deadly pest — but when.

Mexican officials said Tuesday they won’t close the southern border to cattle from Central America, but the U.S. cattle industry strong supports USDA’s decision over the weekend to suspend cattle, horse and bison imports from Mexico , saying the 15-day suspension will likely be extended due to Mexico’s lack of action so far.

NWS Detected 700 Miles From the U.S.
It’s an issue that started in November. The detection of NWS in Chiapas, which is near the Guatemala border, caused USDA to close the border to cattle imports. While shipments resumed in February, USDA says Mexico isn’t doing enough to eradicate the invasive pest, causing an even greater threat to the U.S. cattle industry. And now NCBA wants the U.S. to ramp up efforts as well.

“When we discovered New World screwworm flies in the southern border of Mexico right before Thanksgiving back in November, at that point in time, USDA provided counsel, they provided some money to help the Mexican government try to stop the incursion of the fly,” Colin Woodall, CEO of NCBA, told AgriTalk’s Chip Flory.

“But unfortunately, because of the ineptitude of the Mexican government, quite frankly, the corruption of the Mexican government, the inability to actually allow the planes that are carrying the sterile males to land and to be able to do their job, they have now come further north,” Woodall says. “And right now we know that New World screwworm flies have been detected just 700 miles south of the U.S. Border.”

Woodall told AgriTalk’s Flory that the pest is now way too close for comfort.

Mexico Won’t Close Mexico/Central America Border
According to Reuters, Mexico’s agriculture minister said on Tuesday it will take a long time to eradicate the pest. While the officials said they won’t close Mexico’s southern border to cattle from Central America, Mexico will tighten the flow of cattle from the south of the country to limit the potential spread of the screwworm.

“We are going to be restricting cattle movement from the south of the country much more tightly,” Mexican Agriculture Minister Julio Berdegue said on Tuesday, adding that “closing the border is a complex issue that needs to be carefully analyzed, because it also impacts the national meat supply.”

MEXICO AGRICULTURE MINISTER:

WILL TAKE A LONG TIME TO ERADICATE SCREWWORM FROM MEXICO AND CENTRAL AMERICA
— PiQ (@PiQSuite) May 13, 2025

Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, spoke with Drovers about the geography of southern Mexico and how the NWS has been able to move further north.

“Mexico has that narrow point down there at the bottom, the Isthmus of Tehuantepec, then to the east of it is the Yucatan Peninsula. To the west is the rest of Mexico, and that narrow gap is, historically, where we established the boundary way back when,” Peel explains. “When we initially controlled screw worm in the U.S., we pushed it down through Mexico and got it past below that isthmus, and that was the boundary for years. Then we eventually got it down to Panama, but it got away from them. In Panama, it came back up through Central America, and now that’s the reason we closed the border. It’s actually jumped past that isthmus and is into a part of Mexico now where it’s going to be increasingly difficult to contain it, just physically. That’s the concern and the reason for this latest action.”

NCBA Blames Corruption in Mexico’s Government
Woodall told AgriTalk the country has poorly managed the situation so far and was pointed with his words, saying it’s because of the Mexican government’s failures that Rollins stepped up and closed the border on Sunday to “send a very clear signal that they have failed, and they’ve got to step up their approach.”

“We do know that the first meeting to review the ban is in about 15 days, and then it’ll be reviewed on a month-by-month basis,” Woodall said on AgriTalk. “That’s what the secretary has said. But unless they do something miraculous as far as changing the approach that they are taking in trying to address this in Mexico, I doubt that it’ll be lifted in 15 days just because of what we’ve already seen. They’ve had six months to step up here and try to address it, and they’ve fumbled the ball.”

“They’ve had six months to step up here and try to address it, and they’ve fumbled the ball.”

Colin Woodall, Chief Executive Officer, NCBA

The corruption claims are rooted in what the U.S. has experienced over the past several months. As the U.S. has tried to ramp up efforts to help stop the spread, Woodall told Flory that there have been instances where the government wouldn’t allow U.S. planes to fly over impacted areas, or not allow those planes to land.

“Will they allow that without additional hurdles or trying to extort money from these planes?” Woodall says. “Will they be true cooperators in helping us get those sterile flies delivered into the country? And can we show that there is a check in their northern approach? If we can look at some things like that, then we’ll be willing to go back to the table, because as I said, we know that this is an economic impact on us, but it’s also a pest that we do not want here domestically.”

The Risks of NWS If It Enters the U.S.
The risks are high. Not only is the U.S. beef cattle herd the smallest in more than 60 years, NWS can be lethal to other species.

“We have to be prepared, and that’s why I talked about it. We need to make sure producers understand what to look for because if you don’t catch it fast, you’re going to lose that animal,” Woodall says. “Also this is not just a cattle issue; we’re talking all warm-blooded animals. This can be on birds. This can be on hogs. It can be in pets like dogs. And it can be in people. So, this is going to be a significant issue that we have to deal with not just as a cattle industry, but us in agriculture because I think it also could look really bad from an optics standpoint if somebody’s dog gets screwworms and they want to blame us as agriculture for being responsible for it.”

“This is not just a cattle issue; we’re talking all warm-blooded animals. This can be on birds. This can be on hogs. It can be in pets like dogs. And it can be in people.”

Colin Woodall, CEO of NCBA

Woodall says NWS is a nasty parasite. It hasn’t been in the U.S. since the 1960s, but the reason it’s so difficult to manage is it lays larva, and the larva dig into the flesh of the animal, basically eating the flesh.

“That’s how it develops,” Woodall says. “And so, if it’s not treated, within four to seven days, you can lose an animal. This is a significant animal health issue.”

Currently, there’s a sterile fly production facility in Panama. Jointly funded by the U.S. government, the facility produces a little more than 100 million sterile flies a week, according to Woodall.

“Now, when we were dealing with this down in southern Mexico, 100 million were enough to be able to stop it,” he says. “But now that they have gone through that phytosanitary border and are coming north, that’s no longer going to be enough. We do not have enough sterile flies.”

NCBA Is Working with Congress and USDA to Ramp Up Sterile Fly Production Domestically
NCBA is talking to both USDA and Congress about building a sterile fly production facility in the U.S. When NWS was a problem in the U.S. more than 60 years ago, there was a production facility based in Texas.

There is legislation to do just that. The STOP Screwworms Act was introduced by Rep. Tony Gonzales (R-TX) and Sen. John Cornyn (R-TX). It would fund the opening of a new sterile fly facility in the United States, with the legislators saying the bill would help protect both livestock and human health from the New World screwworm.

“One of the things that we’re also talking to the secretary about and also with Congress is how do we have the funding to build a sterile fly production facility here in the United States because that is the only way we’re going to stop these flies, get them out of the United States, out of Mexico, and ultimately push back into South America,” he says.

“One of the things that we’re also talking to the secretary about and also with Congress is do we have the funding to build a sterile fly production facility here in the United States?”

Colin Woodall, CEO, NCBA

He says in the ‘60s, it took more than 400 million sterile flies a week to eradicate the issue.

“We are focused on getting the domestic production up and running as quickly as possible, so is Secretary Rollins,” Woodall says. “She’s doing a tremendous job in leading this effort. This is something that she has taken on personally. And so I have a lot of faith in her and her willingness to help us as an industry push back this pest, eradicate it as quickly as possible and try to get back to normal training.”

Groups like the Texas & Southwestern Cattle Raisers Association (TSCRA) also support a bill to protect the U.S. from NWS.

“The STOP Screwworms Act is a vital step in protecting the U.S. cattle herd from the growing threat of the New World screwworm. This legislation provides USDA the support needed to construct or retrofit domestic sterile fly production infrastructure which Texas Southwestern Cattle Raisers Association believes is essential in preventing a widespread outbreak,” President Carl Ray Polk Jr. said in a statement. “We are grateful to both Sen. Cornyn and Rep. Gonzales who understand the importance of acting quickly to support cattle raisers and ensuring the threat of the New World screwworm is taken seriously at the highest levels in Washington.”

Read More: U.S. Suspends Mexican Cattle, Horse and Bison Imports Over Screwworm Pest

Mexico Takes Additional Measures to Help Fight New World Screwworm

Thu, 01 May 2025 20:55:30 GMT

USDA has announced that Mexico agreed to additional measures to help fight New World Screwworm (NWS). The U.S. had given Mexico a deadline of April 30 to follow protocols in place or the U.S. would put restrictions on cattle imports.

USDA Secretary Rollins posted on X.com that Mexico has resumed efforts to help fight NWS with the following:

Eliminate restrictions on USDA aircraft
Waive customs duties on eradication equipment
Increase surveillance

(X.com)

Rollins says ports will remain open to livestock imports at this time, however if at any time these terms are not upheld, port closure will be revisited. The secretary had sent a letter to Mexico outlining the expectations for cooperation on the issue.

Protocols had been established in February after the pest was discovered in southern Mexico in November 2024.

“I am happy to share Mexico has continued to partner in emergency efforts to eradicate the New World Screwworm,” Rollins says. “This pest is a devastating threat to both of our economies, and I am pleased to work together with Mexico in good faith to protect the livelihoods of our ranchers and producers who would have been hurt by this pest.”

Rollins reiterated that USDA is working every day to keep pests and disease from harming the agricultural industry.

“I thank our frontline USDA staff and their counterparts in Mexico for their work to ensure the screwworm does not harm our livestock industry,” she adds.

NWS is a deadly parasitic fly that infests warm-blooded animals, causing severe wounds and complications that can lead to death.

Your next read: Streamline Spring Cattle Processing with These 3 Stress-Reducing Steps

Trump Plans to Ease Trade Tensions by Reducing Tariffs On Chinese Goods

Wed, 23 Apr 2025 21:38:45 GMT

Comments President Donald Trump made at a White House press briefing on Tuesday have signaled the U.S. trade war with China is about to de-escalate.

The 145% import tax rate imposed on Chinese goods will “come down substantially, but it won’t be a zero,” Trump said.

“I don’t know if we can call what President Trump did on China a U-turn, but some people are calling it that,” AgriTalk Host Chip Flory said on Wednesday. He asked guests what their level of support is for what the Trump administration is doing on trade currently.

“I think he’s doing what needed to be done,” said Scott McGregor a cattleman and grain producer from northeast Iowa, near Nashua.

McGregor said he wants to see a level playing field for the U.S. in its trade efforts and negotiations with China.

“China needs to be a trade partner, not just a trading destination. That’s a lot of it,” McGregor said. Get the complete AgriTalk discussion here .

Financial Losses In The U.S. Beef Industry

Beef producers are reported to be “losing up to $165 per head on cattle currently, due to the absence of Chinese competition for high-value cuts like short rib and chuck. That’s a $4 billion annual blow to the U.S. beef sector…,” reported The Scottish Farmer last week.

McGregor said he would like to see the U.S. open up new markets for its beef and grain products to increase opportunities and minimize potential risks from future tariffs.

“China is not our only destination for our ag products, right? We need to expand our horizons as much as we can,” McGregor said.

When U.S. cattlemen start talking about market opportunities, Flory said they often turn their focus on Australia. The U.S. imports about $3-billion worth of beef from Australia a year.

“Australia doesn’t import any beef from the U.S., and there’s cattlemen here that would like to see that fixed,” Flory said. “But the issue is, there’s only, what, 30 million people in Australia?”

Furthermore, Australia has a lot of beef to export that the U.S. needs for use in hamburger, McGregor said.

“I know people don’t want us to import it, but Nellie bar the door if we couldn’t import beef from Australia for grinding,” he said. “Our demand is so huge here in the United States that we have got to import it. It has to meet all the specs that our beef does for importation, and it isn’t like we’re just willy-nilly importing some beef. We need it bad. And yes, it’d be great if they took some of our beef, but they don’t have the population.”

China has turned its attention and dollars to accessing more Australian beef, as well. According to Meat and Livestock Australia, Australian grain-fed beef exports to China surged almost 40% in February and March year-on-year, according to The Scottish Farmer article.

“Australian beef finds itself in a rare sweet spot – a prime cut of opportunity in a world of lean margins,” the article said.

Your next read: CAB Insider: Market Update April 23

Beef Industry Sees Some Silver Linings As Reciprocal Tariffs Go Into Effect

Thu, 03 Apr 2025 15:07:02 GMT

President Donald Trump unveiled a series of tariffs on Wednesday afternoon during his “Make America Wealthy Again” event in the White House Rose Garden.

Using his International Emergency Economic Powers Act authority, he announced the U.S. will impose a 10% tariff on all countries that will take effect April 5, 2025, at 12:01 a.m. EDT.

Trump will also impose an individualized reciprocal higher tariff on the countries with which the U.S. has the largest trade deficits to take effect April 9, 2025, at 12:01 a.m. EDT. All other countries will continue to be subject to the original 10% tariff baseline.

Livestock Industry Weighs In On Announcement

During the event, which was broadcast live across the U.S. and abroad, Trump held up a chart showing specific countries in line for what he described as reciprocal tariffs.

“ We will charge them approximately half of what they are — and have been — charging us,” he said. “So, the tariffs will not be a full reciprocal. I could have done that, I guess, but it would have been tough for a lot of countries.”

Joe Schuele, U.S. Meat Export Federation senior vice president of communications, responding to the announcement in a prepared statement, said the president’s executive order provides more clarity on the administration’s approach to reciprocal tariffs.

“USMEF’s main concern is obviously how our trading partners will react,” Schuele said. “We are hopeful that they will focus on eliminating barriers to trade rather than imposing restrictive countermeasures.”

National Cattlemen’s Beef Association (NCBA) Senior Vice President of Government Affairs Ethan Lane also issued a statement after attending President Donald J. Trump’s announcement at the White House.

“For too long, America’s family farmers and ranchers have been mistreated by certain trading partners around the world,” Lane said. “President Trump is taking action to address numerous trade barriers that prevent consumers overseas from enjoying high-quality, wholesome American beef.

“NCBA will continue engaging with the White House to ensure fair treatment for America’s cattle producers around the world and optimize opportunities for exports abroad,” Lane added.

A partial list of the countries Trump called out and specific tariff percentages to be imposed include:

China - 34%
European Union - 20%
Vietnam - 46%
Taiwan - 32%
Japan - 24%
India - 26%
South Korea - 25%
Thailand - 36%
Switzerland - 31%
Indonesia - 32%

Reciprocal tariffs laid out by President Trump.
(The White House )

Some Trade Partners Inhibit U.S. Opportunity

A recent article in Drovers, Cattle and Hog Markets See Opposite Impact of Tariffs, shows that tariffs on U.S. beef and cattle imports can have a net effect of tightening supplies, and that’s price positive.

Numerous countries are imposing tariff and non-tariff trade barriers on American beef that inhibit opportunities to export product, added NCBA’s Lane who offered five examples:

Australia has sold roughly $29 billion of beef to American consumers. Meanwhile, the U.S. has not been able to sell $1 of fresh U.S. beef in Australia due to non-scientific barriers, Lane said.
Vietnam places a 30% tariff on U.S. beef while Australian beef faces no such tariff.
Thailand places a 50% tariff on U.S. beef.
Brazil and Paraguay have a history of dangerous foot-and-mouth disease, but despite overwhelming evidence of their animal health risk, the Biden administration continued to allow U.S. market access to Brazil and Paraguay.
The European Union places numerous non-scientific “Green Deal” restrictions on American beef, limiting market opportunities.

Grain Growers Brace For More Financial Pain

Potentially caught in the middle of the new tariff battles are those farmers who produce cattle and grain. That describes Chase Dewitz, who shared his perspective on AgriTalk. His family operation includes more than 34,000 acres of pasture, row crops, 1,500 head of beef cows and a feedlot. His current concerns revolve around grain exports.

“I think there’s going to be some pain here for a while, and the biggest thing is these export markets. We have handed China to Brazil, and we’re just pushing them away more and more, and we’ve allowed this to happen,” said Dewitz, who is based in central North Dakota, near Steele.

During the 2018 trade war with China, U.S. agriculture experienced more than $27 billion in losses, according to the American Soybean Association. The association says the U.S. has yet to fully recover its former market share of soybean exports to China, the world’s No. 1 buyer of the commodity .

“The policies of the last 30, 40, 50 years have just pushed this thing so far,” Dewitz said. “And without some major pain, I don’t know how you reset that.”

Other grain growers expressed similar nervousness about tariffs and declining optimism in the Purdue University-CME Group Ag Economy Barometer for March. Forty-three percent of the farmers surveyed cited shifting trade policy as the No. 1 driver of their negative outlook.

In addition, farmers were pessimistic about the outlook for the future of ag export markets, particularly for grain. Five-year expectations for U.S. exports reached an all-time low for the survey, according to James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

A recent AgWeb poll that found more than half of farmers don’t support Trump’s use of tariffs .

Dewitz said U.S. farmers want changes that will bring about fairer trade agreements but no one likes financial pain.

“Everyone says, ‘this needs to be fixed,’ and then on the backside they say, ‘as long as it doesn’t affect me,’” he said. “Well, it’s going to affect everybody.”

Listen to the full conversation with farmers and producers, including Dewitz, on “AgriTalk” here: Farmer Forum - AgriTalk

Your next read: Mexico’s President Says the Country Won’t Retaliate with More Reciprocal Tariffs on U.S. Products

Legislators Reintroduce Bill to Recruit and Retain Veterinarians in High-Need Areas

Thu, 27 Mar 2025 20:44:19 GMT

The Rural Veterinary Workforce Act, bipartisan legislation to help recruit and retain veterinarians in underserved and rural areas, was reintroduced by Senators Mike Crapo (R-Idaho) and Tina Smith (D-Minn.) and Representatives Adrian Smith (R-Neb.) and John Larson (D-Conn.).

“In nearly every state in the country, there are shortages for veterinarians, especially in rural areas,” Sen. Smith says. “This record shortage causes serious harm to the health of animals and the public. Providing additional funding to the Veterinary Medicine Loan Repayment Program (VMLRP) and updating the tax code to better serve veterinarians will allow more qualified vets to do vital work with our animals in underserved communities.”

Strongly endorsed by the American Veterinary Medical Association (AVMA), this would expand the reach and maximize the allocated funding of the highly successful VMLRP, which can help to attract veterinarians in USDA-designated veterinary shortage areas by assisting with the significant obstacle of educational debt. It would also end the federal taxation on VMLRP awards, allowing more veterinarians to participate in a program that offers up to $120,000 over three years for student loan repayment in exchange for service in one of the designated shortage areas. In addition, it would align the tax code with human and other healthcare professions’ award funds.

“Veterinarians are vital to the work of America’s farmers and ranchers and the integrity of our food supply chain. Yet many areas of the country suffer from lack of access to their services,” Rep. Smith says. “This bipartisan bill would make commonsense tax relief available to veterinarians who choose to live and work in the communities which need their help to care for their livestock and protect the agriculture industry from pests and disease. I thank my colleagues for joining me in reintroducing it.”

In 2025, the USDA declared 243 rural veterinary shortage areas in 46 states, which is the highest number of shortage areas ever, AVMA said in a release. Since 2010, the USDA has awarded 883 VMLRP awards to veterinarians; meanwhile, 2,197 applications have been received to participate in the program since its inception.

“Recruiting and retaining veterinarians through the Rural Veterinary Workforce Act is key to protecting our nation’s food supply, preserving animal welfare, and upholding public health,” Sandra Faeh, AVMA president, said in a release. “Livestock and public health veterinarians are essential to strengthening the nation’s animal health infrastructure and agricultural economy. We urge Congress to address this increasingly important issue by passing the Rural Veterinary Workforce Act.”

Your next read: Is the Swine Industry Ready for H5N1? Texas Veterinarian Says “No”

More Funding Going to Tackle HPAI H5N1, Egg Imports are Now Underway to Stabilize Supply

Thu, 20 Mar 2025 20:49:05 GMT

On Thursday morning, USDA Secretary Brooke Rollins gave an update on progress the Trump administration is making on the five-prong strategy it unveiled Feb. 26 to combat avian influenza virus type A (H5N1).

Speaking to industry stakeholders, media and offices of elected officials, Rollins focused on the administration’s work to lower egg prices and improve supply, while also emphasizing the importance of biosecurity in protecting U.S. poultry flocks from the virus.

Regarding egg prices, she said wholesale prices are down nearly 50% from their peak in late February from $8.53 then to $4.08 currently.

However, Rollins said she realizes that wholesale prices don’t automatically show up as reductions in retail prices.

“I know for some of us who are shopping that we’ve seen egg prices drop immediately, which has been true for me. But then we’ll hear from people in other parts of the country where they have yet to see that reduction on their grocery store shelf.”

With Easter just a few weeks away, she acknowledged that egg demand is always “unusually high during the season,” and that egg prices could potentially move back up.

To help address the egg shortage, Rollins noted that shell egg exports have declined by 8%, “keeping more eggs in the U.S. and lowering prices.”

In addition, the Trump administration is allowing egg imports as a temporary measure to stabilize prices and supply. Rollins’ chief of staff Kailee Buller said this measure would likely be discontinued once those measures were achieved.

USDA Focuses On Biosecurity For Poultry Operations
Rollins said biosecurity in poultry flocks will continue to be a major part of the Trump administration’s plan to address H5N1, moving forward.

“Our pilot programs have proven that biosecurity is the most important thing our farmers can do to protect our flocks against the disease, at least right now,” she said.

The USDA is working closely, she said, with its federal partners including the U.S. Department of Health and Human Services (HHS), Centers for Disease Control (CDC), National Institutes of Health (NIH), and the Food and Drug Administration (FDA) to “combat avian flu as a unified federal family.”

On Wednesday, USDA announced it is expanding the availability of its biosecurity assessments to commercial poultry producers.

“These assessments, which were previously available on a limited basis have been extremely successful in improving biosecurity on individual premises and preventing the introduction or spread of avian influenza,” Rollins said.

While USDA is exploring the viability of vaccinating poultry for H5N1, she said the use of any vaccine for poultry or any animal species has not been authorized at this time.

“I know there has been some misreporting on that,” Rollins said. “The day we rolled out the plan, I actually talked about the fact that we’re not ready to vaccinate. We need to do some more research, and so that has not changed, but I do look forward to this next process of learning more about getting more research done and perhaps seeing what makes sense for the country moving forward, once that is concluded.”

Dairy Is Not Part Of USDA’s Primary H5N1 Focus
No information was offered during the conference call to address the issue of H5N1 in dairy cattle or other livestock or animal species.

Mike Watson, administrator of USDA-APHIS, said right now USDA is focused on the poultry vaccine.

“We’re looking for a vaccine that has sterilizing immunity but also an opportunity for us to have different introduction methods for the vaccine right now, as injections are the only possibility,” he said. “We need new tools, whether it’s water based, aerosol based, those kind of things. We’re looking for manufacturers to really look at what those options might be, to really provide us with a vaccine that matches the current strain but also is highly effective. And again, this is really focused on poultry.”

Buller said there is already quite a bit of research at USDA on the topic in dairy.

“Please rest assured, we are thinking of you all (in dairy). We know you all are impacted. But for this particular strategy, we have been hyper-focused on the poultry side. USDA has separate work streams as we’re working through this on the cattle and dairy side.”

One of the media asked whether Sec. Rollins had talked further with HHS Sec. Robert F. Kennedy Jr. regarding his idea of letting H5N1 burn through poultry flocks to identify birds that might have immunity or show resistance to the virus.

Buller answered the question, as Rollins had stepped away from the call. “I have not been engaged specifically with those conversations with the Secretary and Secretary Kennedy,” she said. “They are talking very regularly and you are aligned on the approach, but in terms of that specific topic, there’s no further light I can shed on that at this time.”

Assessments Available To Poultry Operations
USDA is offering two different, free, voluntary biosecurity assessments for poultry operations not currently affected by HPAI.

The first is a wildlife biosecurity assessment. The second is a general biosecurity assessment. Poultry producers can request one or both of these free assessments.

Per the wildlife biosecurity assessment, Rollins said USDA will conduct on-farm assessments at poultry facilities and provide recommendations to producers for facility repairs and wildlife management techniques. The assessments include a series of regular engagements, including wildlife hazard identification surveys, wildlife abundance surveys and wildlife management on the premises.

“USDA has assessed approximately 130 facilities to date (in 2025), and plans on doing significantly more moving forward and expanding that program,” she said.

For the general biosecurity assessment, USDA will work with poultry producers to review biosecurity plans and physical measures.

“This is a proactive resource for premises that are outside of avian flu control areas to identify and mitigate potential biosecurity gaps,” she said.

Funding Is Ramped Up To Address HPAI In Poultry
The USDA announced on Thursday that up to $100 million in funding will be available to support projects on avian influenza, prevention, therapeutics, vaccines and research.

“USDA will invest up to $100 million in these projects, which will identify and foster innovative solutions to fight avian flu and directly support American producers,” Rollins said during the conference call.

Funding is available through a competitive process to for-profit organizations, including manufacturers of vaccines, biologics and therapeutics, as well as states, universities, livestock producer organizations and other eligible entities, she noted.

USDA will prioritize one or more of the following. First, it will support the development of novel therapeutics to address HPAI in poultry. Second, it will support research to further understand the risk pathways of avian influenza for producers and to inform improved biosecurity and response strategies.

“Let me just say, as a quick aside, I’ve had multiples and multiples and multiples of conversations with some of our chicken farmers across the country —many of them have been highly successful at not having the bird flu infect their populations,” Rollins said. “Better understanding of risk pathways and realizing what best practices are is a big part of (this work).”

The third focus is on the development of novel vaccines to protect poultry from H5N1 while promoting biosecurity.

“That will all be part of the research funding opportunity that we announced about an hour and a half ago,” Rollins said.

USDA will test the efficacy of therapeutic interventions to prevent the virus and treat infected flocks.

“USDA, in consultation with HHS, has already had multiple conversations with Secretary Kennedy and leaders in the NIH and CDC, but will also be exploring prevention strategies to promote biosecurity in agriculture and in humans, to ensure limited impact on American farmers,” Rollins noted.

USDA is offering a webinar to assist interested applicants in learning more about the funding opportunity and how to submit a proposal on Tuesday, April 1 at 12 p.m. Eastern. No details on how to participate in the webinar have been communicated yet.

“As we try to do everything under this president and here at USDA, we will be as fast and efficient and effective as we can possibly be, working around the clock,” Rollins said.

Buller added that Sec. Rollins and her staff will continue to host update calls regularly.

“It’s very important to Sec. Rollins that we are showing progress on this five-prong plan and being honest and open with the public about what we’re up to and the progress and potential challenges that we have ahead,” Buller said. “We have an open door here, and we remain open to having conversations and hearing from stakeholders.”

USDA NASS to Bring Back July Cattle Inventory Report in 2025

Wed, 19 Mar 2025 17:37:17 GMT

Less than a year after USDA’s National Agricultural Statistics Service (NASS) announced it was nixing a major cattle inventory report, the agency now says it’s bringing it back. USDA-NASS announced on Wednesday the July Cattle Inventory report will be reinstated this year, which will provide a mid-year check of the size of the U.S. cattle herd at a time when supplies are critically low.

In April 2024 NASS broke the news that due to budget cuts in the appropriations bill, the agency was forced to discontinue several reports. One of those was the July Cattle Inventory report. And at a time when cattle supplies were historically tight, that announcement drew intense criticism from market analysts.

“We recognize the importance of these critical data releases and made it a priority to find a way to restore them,” Lance Honig, who’s the Chair of the Agricultural Statistics Board for USDA-NASS, told Farm Journal after the announcement on Wednesday. “All data are important, but the current situation in the cattle industry makes the mid-year inventory update that the July Cattle report provides invaluable.”

There was a hint that the mid-year cattle report would make a comeback when USDA-NASS released the January Cattle Inventory report earlier this year. The report was released as a biannual report, but NASS wasn’t able to confirm that the July report would indeed be back this year.

“NASS has been working hard all year to make these reinstatements possible, but waited to finalize and publicize plans until the full year budget was known and it was clear that we would be able to deliver,” Honig told Farm Journal.

Not only is NASS reinstating the mid-year cattle inventory report, but NASS says it’s also bringing back the following reports, with the scheduled release dates:

County Estimates – corn, sorghum, soybeans: May 6
County Estimates – cotton: May 12
County Estimates – cattle: May 13
County Estimates – rice, peanuts: May 23
July Cattle: July 25

The cattle inventory announcement is welcome news as cattle market watchers try to grasp any data available for signs of possible rebuilding in the U.S. cattle herd.

In January, shrinking cattle supplies continued to be the story as USDA’s annual Cattle Inventory Report showed the U.S. cattle inventory shrunk another 1% over the previous year, now at 86.7 million head. The U.S. beef cattle herd hit a 64-year low at 27.9 million head.

Other highlights within the January Cattle report included:

Of the 86.7 million head inventory of all cattle and calves, cows and heifers that have calved totaled 37.2 million.
The number of milk cows in the U.S. increased slightly to 9.35 million.
The U.S. calf crop was estimated at 33.5 million head, down slightly from the previous year.
USDA-NASS says the number of cattle on feed was at 14.3 million head, down 1% from 2024

“The next takeaway is that we have not started rebuilding the breeding herd,” said Arlan Suderman, with StoneX Group, said after the January report. “As such, perhaps we will have a little higher numbers over the next half year or so, but then things get tighter, and more significantly tighter once we actually do start holding back heifers.”

Economists and market analysts knew the cattle herd was still shrinking, even before the report was released in January, but economists say there are some signs starting to signal that is slowing down.

“We certainly got smaller in 2024. That was actually kind of obvious about a year ago when you looked at heifer numbers,” said Derrell Peel, Oklahoma State University Extension livestock specialist. “If you look at the heifer numbers in this report, we don’t have a lot. And so we’re going to be challenged going forward to stop this liquidation. I think we might stabilize numbers this year, but I think growth is pretty much a long shot at this point.”

Casey Mabry, with Blue Reef Agri-Marketing, said there actually was a surprise in the January cattle inventory report, and that wasn’t with heifer numbers.

“The biggest surprise to me was really looking at the total calf crop report, because we’re looking at the total cow inventory numbers. I think that probably caught some people off guard, having the calf crop a little bit bigger than what most people’s expectations were,” said Mabry.

USDA’s next look at cattle supplies will now happen with the July Cattle Inventory Report, which is scheduled to be released July 25, 2025 .

Your Next Read: Buckle Up: Here’s Why Cattle Prices Are Setting Up for Another Wild Ride in 2025

Trump Administration Announces $1 Billion to Combat Avian Flu and Soaring Egg Prices

Wed, 26 Feb 2025 15:28:34 GMT

The Trump administration is investing up to $1 billion in new funding to combat impacts of highly pathogenic avian influenza (HPAI) and soaring egg prices.

USDA Secretary Brooke Rollins in the Wall Street Journal said, “There’s no silver bullet to eradicating avian flu.” She laid out a five-point plan to address the situation.

Dedicate up to $500 million to helping U.S. poultry producers implement “gold-standard” biosecurity measures. USDA has developed a successful pilot program, called Wildlife Biosecurity Assessments, to identify and implement more safety measures. USDA will pay up to 75% of the cost to address any identified biosecurity vulnerabilities at poultry farms.
Make up to $400 million of increased financial relief available to farmers whose flocks are affected by avian flu, and we will assist them in receiving faster approval to begin safe operations again after an outbreak.
USDA is exploring the use of vaccines and therapeutics for laying chickens. While vaccines aren’t a stand-alone solution, we will provide up to $100 million in research and development of vaccines and therapeutics, to improve their efficacy and efficiency. This should help reduce the need to “depopulate” flocks, which means killing chickens on a farm where there’s an outbreak. Note: USDA hasn’t yet authorized the use of a vaccine. Before making a determination, USDA will consult state leaders, poultry and dairy farmers, and public-health professionals. The agency will also work with trading partners to minimize potential negative trade effects for U.S. producers and to assess public-health concerns.
USDA will take other actions to lower the price of eggs. For starters, it will remove unnecessary regulatory burdens on egg producers where possible. This will include examining the best way to protect farmers from overly prescriptive state laws, such as California’s Proposition 12, which established minimum space requirements for egg-laying hens.
USDA will consider temporary import options to reduce egg costs in the short term. We will proceed with imports only if the eggs meet stringent U.S. safety standards and if we determine that doing so won’t jeopardize American farmers’ access to markets in the future.

Senate Ag Committee Chair John Boozman (R-Ark.) said, “Producers and consumers alike have experienced the economic burden of this outbreak since 2022. I applaud Secretary Rollins and the Trump administration for prioritizing a strategy to combat this evolving threat. I look forward to working with USDA to ensure all poultry and livestock producers’ unique challenges are taken into consideration and they have the tools they need to address animal disease risks.”

In the Wall Street Journal Op-Ed , Rollins said some of the money will come from cuts to USDA spending by the Department of Government Efficiency (DOGE).

“Egg prices are skyrocketing, and it isn’t simply a matter of inflation. Grocery prices rose by more than 20% on President Biden’s watch, but the average price of a dozen eggs went up 237%, from $1.47 in January 2021 to $4.95 last month,” Rollins said wrote in the Wall Street Journal. “This matters for American families because eggs are a healthy, accessible and generally affordable source of protein.”

By the Numbers: Soaring Egg Prices
USDA upped its 2025 egg price forecast to a 41.1% increase (range of up 15.0% to 74.9%), more than double the 20.3% rise they forecast in January. USDA started their 2025 egg price forecast in July 2024 looking for them to decline 7.6% versus 2024

“Retail egg prices increased by 13.8% in January 2025 after rising by 8.4% in December 2024,” USDA detailed. “Retail egg prices continue to experience volatile month-to-month changes due to an outbreak of HPAI that began in 2022. HPAI contributes to elevated egg prices by reducing egg-layer flocks and egg production. About 18.8 million commercial egg layers were affected by HPAI in January 2025, the highest monthly total since the outbreak began in 2022.”

Egg prices in January were 53% higher than January 2024 and “surpassed the previous peak prices in January 2023,” USDA detailed.

I just left a message for Chris Kempczinski, CEO of McDonalds USA, thanking him for the choice to not add surcharge to eggs. THANK YOU @McDonalds!!!

(note the egg mcmuffin🥰🍳) https://t.co/UhBUJicTje pic.twitter.com/kRu6DXYutg
— Secretary Brooke Rollins (@SecRollins) February 26, 2025

Avian Flu a Top Priority for Rollins
On Monday, Rollins met with poultry farmers and industry leaders in Texas to address the ongoing avian flu crisis. She toured a Cal-Maine Foods facility in Bogata before hosting a roundtable in Mount Pleasant, where discussions focused on outbreak response and mitigation strategies. Rollins criticized the Biden administration’s handling of the issue, emphasizing the Trump administration’s commitment to supporting farmers and stabilizing egg prices.

“Clearly, this is a massive issue for our poultry producers, especially our egg layers,” Rollins told AgriTalk’s Chip Flory, in an exclusive interview, during Top Producer Summit. “Ensuring that we have a plan, not just for the short-term to bring down egg prices, which the president is very focused on, but for the long-term. What are the best practices around the world? Why in America have we been hit so hard? Why did the last USDA, a couple of years ago, recognize it as a major issue, but not many steps were taken.”

Just hours after being confirmed, Rollins’ first official meeting at the White House was on avian flu. She told Flory it’s her top priority right now, and she’s gathered a team from within USDA and the White House to focus on the issue.

“I’ve been talking to governors. I’ve been talking to the companies that are facing this. I’ve been talking to grocery. I mean, we’ve been talking to everyone, trying to come up with a big toolkit to be able to really approach this and hopefully figure out a way to, again, solve it for the long-term,” Rollins said.

Flory followed up by asking Rollins if vaccines will be one of the tools used by USDA.

“Vaccines are being discussed right now. I think that there is a lot of opinion on that on both sides. And we’re working through all of that right now,” Rollins told Flory.

The big announcement released on Wednesday did not include any plans to approve vaccines to combat the disease.

Your Next Read:
As the Trump Administration Shifts Strategy on Avian Flu, it’s a Complicated Issue in Need of a Long-Term Solution

Senate Overwhelmingly Confirms Brooke Rollins as 33rd Secretary of Agriculture

Thu, 13 Feb 2025 18:17:34 GMT

Brooke Rollins, President Trump’s nominee for Agriculture Secretary , was overwhelmingly confirmed by the Senate on Thursday. The vote was 72-28. Her confirmation was expected, as the Senate maintains its quick pace of confirming President Donald Trump’s key Cabinet positions.

“America’s farmers, ranchers and foresters need a leader at USDA who will be an advocate for their livelihoods and rural America and be a strong voice to address the pressing needs of our agriculture community. Brooke Rollins is that person,” Sen. John Boozman (R-AR), Chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, said on the Senate floor prior to the vote.

Congratulations @USDA Secretary Brooke Rollins. We look forward to working together to serve rural America. pic.twitter.com/CIljFpYQZX
— Senate Ag Committee Republicans (@SenateAgGOP) February 13, 2025

“I congratulate Secretary Rollins on her confirmation,” said House Committee Ranking Member Angie Craig (D-MN) in a statement following the vote. “Secretary Rollins begins her new role at a critical time for American agriculture. Family farmers are struggling with high input costs and low prices; tariffs are being proposed that will raise costs on American producers and American consumers; the agricultural workforce is being threatened; and Congress is behind schedule in passing a new, bipartisan farm bill. If we want to tackle these challenges in a way that supports family farmers and the communities they feed, we will need to work together. I look forward to building a strong working relationship with Secretary Rollins as ranking member of the House Agriculture Committee.”

Today, @SecRollins was sworn in as the 33rd U.S. Secretary of Agriculture. Here’s a snapshot of her first day at USDA! pic.twitter.com/GFpIYdnovF
— Dept. of Agriculture (@USDA) February 14, 2025

Rollins’ close ties to President Trump are viewed as a positive for U.S. agriculture as some say, “she has President Trump’s ear.”

When President Trump made the nomination announcement in November, he said her “commitment to support the American farmer, the defense of American food self-sufficiency and the restoration of agriculture-dependent American small towns is second to none.”

Important Issues in Immediate Focus

Rollins has some important issues to focus on immediately, including:

Reviewing the various USDA grants and other funding that remain frozen;
Getting ag disaster ($21 billion) and economic aid ($10 billion) payments made to eligible producers;
Working with NEC Director Kevin Hassett and others on the bird flu situation;
Monitoring the impact of Trump tariffs on the U.S. ag sector and any need for a farmer aid program
Advising key congressional members on a new farm bill;
Working with Treasury/IRS, EPA and Energy Dept. personnel on finalizing information regarding the 45Z program;
Informing President Trump and others about the impact on farm country from mass deportations relative to border security action;
Checking on and working with other agencies and departments regarding food aid;
Working with her new staff and other key USDA personnel as they officially come into USDA;
Getting ready for fiscal year 2026 budget matters for USDA;
Working with EPA and the Dept. of Energy on the 2026 RFS RVOs;
Dealing with a smaller USDA workforce via buyouts and other actions to reduce the number of government workers;
Addressing issues raised by the GAO relative to operation of the SNAP/food stamps program and other operational aspects of the program should they see any major alternations under budget reconciliation.

Rollins Gets Straight to Work

Rollins already held a meeting at 4 p.m. CT Thursday at USDA on bird flu, gathering who she said were “some of the most brilliant professionals I’ve encountered. Their insights were invaluable.” Rollins will be very visible in the days ahead, she said on X that she will be in four states, give six speeches, attend the National Farm Machinery Show in Louisville and “so much more.”

Today, I had the immense honor of being sworn in as the next Secretary of Agriculture by one of my heroes — and a true American judicial titan — Justice Clarence Thomas.

Being surrounded by my precious family as I took the oath of office is a moment I will forever cherish. pic.twitter.com/CrprXOuW7Z
— Secretary Brooke Rollins (@SecRollins) February 14, 2025

A Look Back at Rollins’ Confirmation Hearing

During Rollins’ confirmation hearing in the Senate Ag Committee last month , she outlined several key priorities for USDA if confirmed:

Rapid deployment of disaster and economic assistance authorized by Congress.
Addressing current animal disease outbreaks.
Modernizing and realigning USDA.
Ensuring long-term prosperity for rural communities.

Rollins also clarified her stance on ethanol and RFS, distancing herself from past positions of the Texas Public Policy Foundation:

She stated the Foundation’s position on ethanol/RFS was written a decade ago and was one of 900 to 1,000 papers produced annually.
Rollins emphasized she did not author those papers.
While admitting to being a defender of fossil fuels, she insisted she would be “a secretary for all of agriculture” and a “champion for all fuels.”

Tariff Impact Aid for Farmers

During questioning, Senate Ag Committee Chairman John Boozman (R-Ark.) asked Rollins about her approach to working with President Trump’s trade agenda. Rollins responded she would prioritize working with the White House to address any challenges farmers and ranchers might face under potential tariff implementations.

Rollins committed to supporting farmers in the case of tariff-related harm:

She pledged to undertake efforts such as the Market Facilitation Program (MFP) via payments from the first Trump administration. MFP was part of a broader effort by USDA to assist farmers impacted by retaliatory tariffs and trade disruptions.
Rollins has consulted with former USDA Secretary Sonny Perdue about the implementation of such programs.

Rollins previously servied as the president and CEO of the America First Policy Institute (AFPI), a think tank established by former Trump officials to promote conservative policies.

AFPI has advocated for curbing foreign ownership — particularly from China — of U.S. farmland, an issue with bipartisan support in Congress. She served as the president and CEO of the Texas Public Policy Foundation (TPPF) from 2003 to 2018, where she significantly expanded the organization and positioned it as a leading state-based think tank.

Economists Says Rollins is a Positive for U.S. Agriculture

How Farmers Size Up RFK Jr.

(Farm Journal )

80% of economists in the January Ag Economists’ Monthly say Rollins is a positive pick for U.S. agriculture .

“Rollins knows ag and has Trump’s ear,” said one economist.

“Her close connection the President and reasons outlined in the letter sent by 427 ag organizations and businesses on January 15th,” said another economist.

20% of economists say Rollins wouldn’t be positive for U.S. agriculture.

One economist said, “USDA focused heavily on under-served producers during the Vilsack era and my sense is that producers wanted the Secretary to come from a production ag view; whereas Rollins come at it more from an overall domestic policy view. Also, feel the administration isn’t helping her out with the Deputy Secretary nomination. Producers don’t see themselves in the upcoming USDA leadership.”

Ag Groups React to Rollins’ Confirmation

“Congratulations to Secretary Brooke Rollins on her confirmation to lead USDA. America’s pork producers are eager to work with Secretary Rollins to fix the multitude of problems caused by California Proposition 12 and ensure farm families have reasonable policies to pass down our farms to future generations,” said National Pork Producers Council (NPPC).
“On behalf of America’s farmer cooperatives, I would like to congratulate Brooke Rollins on her confirmation as Secretary of Agriculture today. In this role, Secretary Rollins will lead an agency that impacts the operations of every farm and ranch in the country and touches every local community across rural America. She will also serve as the voice of producers within the Trump administration at a critical moment. NCFC looks forward to working with Secretary Rollins on a range of issues within USDA that impact farmer co-ops and their members,” said National Council of Farmer Cooperatives (NCFC).
“Congratulations to Secretary Brooke Rollins on her bi-partisan confirmation to become U.S. Secretary of Agriculture. Clearly, President Trump has selected a highly capable and accomplished individual to lead USDA. Secretary Rollins’ commitment to returning USDA to its core mission of supporting all of agriculture is exactly the focus our country needs right now. I am confident that she will be an effective advocate for farmers, ensuring that President Trump’s policies reflect their needs and support the vitality of our rural communities,” said Mike Naig, Iowa Secretary of Agriculture.
“The National Association of State Departments of Agriculture (NASDA) congratulates the Honorable Brooke Rollins on her confirmation to lead USDA as the 33rd U.S. agriculture secretary. Rollin’s policy crafting experience and passion for opportunities for agriculture will contribute tangible impacts for American farmers and ranchers and people around the globe who enjoy U.S. food products.
NASDA is enthusiastic to work with the secretary on our priorities including increasing economic opportunities for farmers, ranchers and food producers, advancing a new farm bill, improving Americans’ access to nutrient-dense foods and ensuring American agriculture can continue to provide the most secure, affordable and nutritious food supply in the world,” NASDA said in a statement.
“Secretary Rollins understands the pain points the agriculture industry faces and has a plan to address these right away,” Hawkins said. “She understands the importance of a strong safety net and is prepared to work with Congress to implement a modernized Farm Bill. She will work with farmers to eliminate burdensome and costly regulations that hamper innovation, will spearhead animal disease prevention and mitigation, and will identify new export channels across the globe to support markets. Raised in rural Texas, Secretary Rollins knows the importance of strengthening our rural communities and making them a great place to live, work, and raise our families. We are thrilled with her bipartisan confirmation and welcome the opportunity to work with her to advance the agriculture industry,” said Missouri Farm Bureau President Garrett Hawkins.
Michael Dykes, President and CEO of the International Dairy Foods Association (IDFA), expressed confidence in Rollins’ capabilities.
“IDFA congratulates Ms. Rollins on her confirmation to lead USDA as the U.S. Secretary of Agriculture. We’re confident she will be a strong voice for the U.S. food and agriculture industry across the federal government. As USDA navigates a dynamic trade environment, we need Secretary Rollins’ leadership to expand U.S. dairy exports, support a coordinated response to animal disease outbreaks, and preserve dairy’s critical place in federal nutrition programs, including SNAP milk and dairy nutrition incentives, WIC and school meals. IDFA looks forward to working with Secretary Rollins at USDA to strengthen Americans’ dietary health, support farmers and the entire dairy supply chain in the production of wholesome food, and build a regulatory environment that promotes innovation, growth and food safety. These efforts will enable our industry to continue leading the world in the production of high-quality, nutritious dairy foods,” Dykes stated.

Congratulations, @BrookeLRollins on your confirmation to lead the U.S. Department of Agriculture @USDA . We look forward to working with you to be a strong voice for the U.S. food and agriculture industry, expand U.S. dairy exports, support a coordinated response to animal… pic.twitter.com/1pqhNrzDnc
— IDFA (@dairyidfa) February 13, 2025

Rollins and will now finish assembling her team at USDA. Here are the key appointments already made by President Trump:

Stephen Vaden: Nominated for Deputy USDA Secretary

Undersecretary Nominees

Richard Fordyce: Undersecretary for Farm Production and Conservation
Dudley Hoskins: Undersecretary for Marketing and Regulatory Programs
Luke Lindberg: Undersecretary for Trade and Foreign Agricultural Affairs
Michael Boren: Undersecretary for Natural Resources and Environment
Scott Hutchins: Undersecretary for Research, Education and Economics

Senior Staff Appointments:

Kailee Tkacz Buller: Chief of Staff at USDA
Preston Parry: Deputy Chief of Staff
Jennifer Tiller: Chief of Staff to the Deputy Secretary and Senior Advisor to the Secretary for Food, Nutrition, and Consumer Services
Dominic Restuccia: White House Liaison for USDA
Ralph Linden: Principal Deputy General Counsel
Audra Weeks: Deputy Director of Communications

Natural Resources and Environment Appointments

Kristin Sleeper: Deputy Under Secretary for Natural Resources and Environment
Tom Schultz: Chief of Staff for Natural Resources and Environment

Other Notable Appointments

Brooke Appleton: Deputy Undersecretary for Farm Production and Conservation
Tyler Clarkson: USDA General Counsel

Canada, Mexico Hit Back with Retaliatory Tariffs on U.S. Imports

Mon, 03 Feb 2025 12:39:14 GMT

In response to President Donald Trump’s decision to impose 25% tariffs on Canadian and Mexican goods , Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexican President Claudia Sheinbaum also announced its own retaliatory measures to Trump’s 25% tariffs, but no specifics were unveiled.

Canada Strikes Back
Prime Minister Justin Trudeau stated that the tariffs will roll out in two phases, starting Feb. 4 on $30 bil. targeting American products such as alcohol, produce, household goods, and industrial materials, the same day the American tariffs are set to begin.

The tariffs on the other $125 billion worth of goods will come in 21 days, to allow impacted Canadian companies to adjust their supply chains. Trudeau emphasized that Canada’s response would be “strong but appropriate,” while also considering non-tariff measures like restrictions on critical minerals.

The move has drawn mixed reactions within Canada, with provincial leaders urging strategic countermeasures while ensuring minimal harm to the domestic economy. Meanwhile, the White House justifies the tariffs as a measure against drug trafficking and illegal border crossings, further straining trade relations between the two countries.

American items that Canadians tariffs will be applied to include:

Beer, wine, and bourbon
Fruits and fruit juices including orange juice, as well as vegetables
Perfume, clothing, and shoes
Major consumer products such as household appliances and furniture
Sports equipment
Other materials such as lumber and plastics

The government of Canada says a more detailed list of impacted products will be released soon.

More Tariffs Coming
Foreign Affairs Minister Mélanie Joly said on Jan. 31 that Canada’s retaliatory tariffs would be coming in rounds. “There would be a first round of measures, second round of measures, and a third round of measures,” Joly said at a press conference in Washington. “And we’ll keep ourselves also some leverage.”

When asked if Canada would be shutting off oil exports to the U.S., Trudeau said he will be ensuring Canada’s response will be “equitable” and won’t be damaging to one part of the country more than the others. Energy-rich Alberta has strongly opposed any export tariffs on oil, or for Canada to stop oil exports altogether. Trump said on Jan. 31 that the U.S. tariffs will be lower on Canada’s oil and gas exports, at 10%, while other goods will have a tariff of 25%.

Canada’s trade surplus in merchandise with the U.S. was around $100 billion (US$59 billion) last year, according to a report by TD Bank. If Canadian oil exports to the U.S. are removed from the figure, the “scales tip to America’s favor,” the report says, meaning the United States would have a $60 billion (US$41 billion) trade surplus.

Canada and U.S. Conduct Two-way Trade Worth $1.3T Every Year

According to the Canadian Chamber of Commerce, 2.3 million Canadian jobs are supported by exports to the U.S., and 1.4 million American jobs are supported by exports to Canada. A Bank of Canada analysis says that under a mutual 25% tariffs scenario, Canada’s GDP would take a 2.4% hit.

Mexico Announces Plans for Retaliation
Mexican President Claudia Sheinbaum announced its own retaliatory measures to Trump’s 25% tariffs, but no specifics were unveiled. Sheinbaum said she had told her economy minister “to implement Plan B” which she said “includes tariff and non-tariff measures” though it was not clear what those measures were exactly.

China Reacts
China’s Ministry of Commerce denounced Trump’s tariffs, saying they undermine “the normal economic and trade cooperation” between the U.S. and China.

The ministry said it would challenge the U.S. action at the World Trade Organization (WTO) and take countermeasures “to firmly safeguard its own rights and interests.” The WTO dispute settlement mechanism has been dysfunctional for years amid U.S. opposition to the appointment of new judges.

Your Next Read:
Trump Officially Signs Three Executive Orders Imposing 25% Tariffs on Canada and Mexico, 10% Tariffs on China

Trump Officially Signs Three Executive Orders Imposing 25% Tariffs on Canada and Mexico, 10% Tariffs on China

Mon, 03 Feb 2025 12:36:35 GMT

Big tariffs, big risks, big impacts: When populism and commercial agriculture collide.

President Donald Trump signed three executive orders for tariffs Saturday, the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977. The orders also include retaliation clauses that would ramp up tariffs if the countries respond in kind. Trump cut the levy on imports of Canadian energy to 10%.

Trump officially announced plans to impose new tariffs on imports including computer chips, pharmaceuticals (without specifying which, at what level or when it would take effect), steel, aluminum, copper, oil, and gas by mid-February, expanding his administration’s trade war strategy. He said he would put new taxes on imported oil and gas on Feb. 18 and aimed to do the same for steel and aluminum this month or next month. This move is separate from scheduled tariffs — 25% on Canadian and Mexican goods and 10% on Chinese products set for Saturday, Feb. 1 — and aims to pressure Mexico, Canada, and China to address issues such as border security, drug trafficking, and migration.

Here’s the detailed Fact Sheet from the White House .

Of note: Canadian officials were told by U.S. officials on Saturday that the tariffs would be implemented on their goods on Tuesday, according to people familiar with the situation. Senior figures on Capitol Hill were briefed on the decision.

Trump also hinted at additional tariffs on EU products, citing poor treatment of the United States, though details remain vague. The president said he “absolutely” would impose tariffs on their shipments to the United States. “We are treated so badly: They don’t take our cars, they don’t take our farm products; essentially, they don’t take almost anything. And we have a tremendous deficit with the European Union. So, we’ll be doing something very substantial with the European Union,” he said.

Related News: Canada, Mexico Hit Back with Retaliatory Tariffs on U.S. Imports

Big impact. Such levies targeting imports from America’s top three trading partners — which together accounted for more than 41% of the U.S.’ goods trade in the January-November period of 2024 — potentially affect trillions of dollars in merchandise, like cars and farm products.

Trump said there was nothing the three countries could do now to stop the tariffs.

Trump announced general tariffs at his Mar-a-Lago, Florida estate. White House spokesperson Karoline Leavitt said the tariffs would be implemented immediately, but as noted, Canada said tariffs would be implemented on their goods on Tuesday. It typically takes weeks for tariffs to take practical effect.

Key points:

Sector-specific tariffs: New duties will target high-tech and industrial sectors, potentially covering more imports by dollar value than previous tariffs on China. Trump also suggested Friday he’d consider new tariffs on oil and gas, potentially by Feb. 18, though it wasn’t clear what he was referring to.
The duties come on top of existing tariffs on those products. The first Trump administration imposed tariffs on more than $300 billion worth of Chinese goods to respond to an array of unfair trade practices, including intellectual property theft. The Biden administration kept all of them in place and increased rates on $18 billion in goods, including electric vehicles, solar panels, medical equipment, lithium-ion batteries, steel, and aluminum.
A second wave of tariffs could follow a comprehensive review of the trade relationship among the three countries (Canada, Mexico and China) that Trump has ordered completed by April 1.
Exemptions and negotiations: There are ongoing discussions about potential carve-outs for critical industries (like oil and automobiles) amid intense lobbying by U.S. business and labor groups. Some hope for exemptions to mitigate domestic economic risks. Trump told reporters in the Oval Office on Friday that there was nothing Canada, Mexico and China could do to avoid the tariffs before Saturday. “Not right now,” he said, telling reporters that his tariff threat wasn’t a negotiating tool. “It’s a pure economic [decision],” he said. But he did say he was considering a lower tariff on Canadian crude oil — 10% instead of 25% (and that it was he announced on Saturday). At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all U.S. imports from Canada, according to U.S. Census Bureau data. The tariff on China would be for what Trump said was failing to stop the manufacturing of fentanyl precursor chemicals.

Why a lower tariff on China? Trump’s threats on tariffs are clearly not all bark and no bite, said Wendy Cutler, vice president of the Asia Society Policy Institute in Washington and a former acting deputy U.S. trade representative in the Obama administration. “He’s clearly in an action-oriented mode and wants to use these tariffs to pressure the three countries to address serious U.S. concerns,” Cutler said. “This is the beginning of the story, this is the first salvo in what’s going to be a long four years,” she said. On why the tariff on Chinese goods will be 10% and not 25%, Cutler said this shows that Trump “may be more interested in seeking a trade deal” with Beijing.

Trump said the Biden administration had not enforced trade deals beneficial to U.S. farmers. During a Friday press conference in the Oval Office, Trump criticized the previous administration’s handling of trade agreements. During his previous term, Trump initiated trade disputes, particularly with China, which significantly impacted U.S. agricultural exports. He stated that China had committed to buying $50 billion a year in farm products, but claimed that former President Joe Biden didn’t enforce this commitment. Trump said, “We’re going to enforce it,” referring to this $50 billion annual purchase agreement with China. His recent statements suggest a continuation of this aggressive stance on trade, framing it as necessary to protect American farmers and correct perceived imbalances left unaddressed by the Biden administration.

· Trump’s team was initially considering a grace period between the announcement of the tariffs on Saturday and when they would be imposed, but White House press secretary Karoline Leavitt played down that possibility on Friday. Leavitt said that a Reuters report stating that the tariffs wouldn’t be implemented until March 1 was “false.”

· Reasons for the tariffs. Trump on Friday said, “We’ll be announcing the tariffs on Canada and Mexico for a number of reasons. Number one is the people that have poured into our country so horribly and so much,” he said about migrants that have entered the United States via its southern and northern borders. “Number two are the drugs, fentanyl and everything else, that have come into the country and number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of [trade] deficits,” Trump said. “I’ll be putting the tariff of 25% on Canada and separately 25% on Mexico and we will really have to do that because we have very big deficits with those countries. Those tariffs may or may not rise with time,” he said.

· International reactions: Leaders from Canada, Mexico, and China are preparing responses. The scale of their responses will depend on whether Trump’s actions match his rhetoric, according to officials in Canada and Mexico.

Canada comments. “You will find when we do respond, at least initially, that we will focus on tariffing American goods that actually are sold in significant quantities in Canada, and especially those for which there are readily available alternatives for Canadians,” Natural Resources Minister Jonathan Wilkinson said in an interview cited by Bloomberg on Friday ( link ), hours after Trump reiterated his plan to bring in tariffs on Canada, Mexico and China.
Of note: Canadian officials were told by U.S. officials on Saturday that the tariffs would be implemented on their goods on Tuesday, according to people familiar with the situation.

Canadian Prime Minister Justin Trudeau warned of economic fallout, and Canada even weighed an export tax on oil to undercut Trump’s ability to exclude gasoline price hikes from his tariff fight. Mexican and Canadian officials have expressed frustration that they don’t know what actions would satisfy Trump’s demands, despite weeks of meetings between senior officials. A Canadian contact said Trump “keeps on moving the goal post… If Trump was trying to build anti-American sentiment in a country like Canada (who get mad about little except for hockey), he is executing well.” Trudeau’s government won’t unveil its retaliation list until it sees what the Trump administration moves forward with. After Trump tied tariffs to what he called an “invasion” of migrants and fentanyl, Canadian officials in December unveiled a $900 million border plan, to add helicopters, drones and other surveillance capacity. “Canada’s border is strong and we’re making it stronger,” said Public Safety Minister David McGuinty, speaking to reporters. “When our largest ally raises concerns, we take it seriously.” McGuinty was in Washington Friday to meet with U.S. border czar Tom Homan. Bloomberg reports that Canadian officials come to the discussions armed with documents, charts and even time-lapse videos of certain border crossings. Only 1.5% of migrants apprehended by U.S. Customs and Border Protection in the 2024 fiscal year and 0.2% of fentanyl seized at U.S. borders came from Canada.

Ontario Progressive Conservative Leader Doug Ford spoke in anticipation of Trump’s tariffs on Canadian imports, which are set to be implemented on Saturday, calling them “reckless… I wish I had better news to share but Donald Trump couldn’t have had been more clear. He’s moving forward with these reckless tariffs. He’s chosen to tear up decades of good will that has made life better for workers on both sides of the border, for businesses on both sides of the border, for families on both sides of the border,” Ford said at a campaign event in Brampton.”

Mexican President Claudia Sheinbaum vowed to counter with retaliatory measures. Sheinbaum said: “We have Plan A, Plan B, Plan C, depending on what the government of the United States decides. It’s very important that Mexicans know that we will always defend the dignity of our people, respect for our sovereignty and a dialogue among equals [with the U.S.], not with subordinates.” Sheinbaum noted that Mexico has been open to receiving its citizens sent back under Trump’s plan for mass deportation of unauthorized migrants and that it was prepared to take some from other countries, which represented a concession. Deputy Economy Minister for Trade Luis Rosendo Gutierrez is expected to travel to Washington on Monday, according to reports. But he can’t meet with U.S. trade or Commerce Department officials until they’re formally ratified, they said. Instead, he’ll talk to business leaders and associations. Sheinbaum has also pointed to Foreign Minister Juan Ramon de la Fuente as a key interlocutor to US Secretary of State Marco Rubio. High-level teams from Mexico’s foreign ministry and the State Department are in frequent communication working on security and migration, Mexico is the No. 1 trade partner of the United States, and sends 80% of its exports north. Mexico supplies around half of America’s imported fruit and two-thirds of imported vegetables, in dollar terms — tomatoes, berries, bell peppers, cucumbers. And it’s the largest source of imported beer. Mexico also is the No. 1 provider of medical devices to American hospitals and doctor’s offices, from surgical gloves to scalpels. Mexico emerged last year as the top market for American agricultural exports, totaling $30 billion.

· USMCA impact. While the U.S., Canada and Mexico have a standing free-trade agreement, it isn’t clear that the expected tariff action would immediately violate that pact. The U.S.-Mexico-Canada Agreement (USMCA), like most trade pacts, includes a provision that allows for the imposition of tariffs on national-security grounds.

One of Trump’s tariff goals is to push Canada and Mexico to accelerate a renegotiation of USMCA, now slated for July 2026. President Trump and his supporters believe that imports of cars and steel from Mexico (and China’s involvement in such activity) are weakening U.S. manufacturers. And they say the USMCA, the trade deal Trump signed in 2020 to replace the North American Free Trade Agreement, needs to be updated — or perhaps, scrapped.

Of note: According to economists at S&P Global, of the imports coming into the United States from Canada and Mexico, more than 18% of their value was created in the United States, before being sent to those countries. That’s far more than the proportion for other countries, and a sign of how closely the economies are integrated.

One out of three cars sold in Mexico last year came from China. That means Chinese exports are now meeting Mexican demand for cars, rather than exports from the United States, a blow to the U.S. auto industry.

· Economic impact concerns: “I think there could be some temporary, short-term disruption and people will understand that,” Trump said. Trump said the tariffs “will reinvigorate industry. “The way you bring it back to the country is by putting up a wall. And the wall is a tariff wall,” he said. “The tariffs are going to make us very rich and very strong.” He dismissed concerns that placing steep taxes on many foreign goods would lead to renewed inflation in the United States, where prices are still rising faster than the Federal Reserve’s target. “Tariffs don’t cause inflation. They cause success,” the president said.

Although Trump dismissed worries about inflation and supply chain disruptions, critics warn that broad tariff applications could disrupt trade and lead to higher prices for consumers, especially in border regions heavily reliant on imports from North America. Tariff-related price increases would hit consumers’ wallets at a time when beef prices are near record highs and costs for eggs have climbed after bird flu eliminated millions of egg-laying hens. “Any increase in expenses in the form of a tariff subsequently serves as a ‘food tax’ on consumers for imported products and is not a workable solution,” National Grocers Association spokesman David Cutler said.

Tariffs are paid by American importers and borne by consumers, though offset potentially by price reductions abroad. The burden will fall disproportionally on low-income households who spend more of their income on physical goods relative to higher income households who spend more of their income on services and experiences, which aren’t subject to tariffs.

A new analysis from the Budget Lab of Yale estimated that the proposed tariffs could raise annual costs on households by roughly $1,300. Researchers at the Peterson Institute for International Economics in Washington estimate that a 25 percent tariff on all exports from Mexico and Canada would lower U.S. gross domestic product by about $200 billion for the duration of the second Trump administration. A model gauging the economic impact of Trump’s tariff plan from EY Chief Economist Greg Daco suggests it would reduce U.S. growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” at home. “We have stressed that steep tariff increases against U.S. trading partners could create a stagflationary shock — a negative economic hit combined with an inflationary impulse — while also triggering financial market volatility,” Daco wrote on Saturday.

Facts and figures: 17% of U.S. goods exports go to Canada, 16% go to Mexico and 7% go to China and totaled $763 billion in the first 11 months of 2024.

Of note: For many items, there is roughly a three-month wait until the tariffs impact consumer prices as retailers sell their existing inventory that are not subject tariffs. Getting a firm impact assessment of tariffs is difficult because some exporters will absorb some of the additional costs, and currency changes by some countries will temper the impacts. There will also mean changes to trade flow patterns as buyers seek alternatives sources and sellers look for other importers.

Mexican Economy Minister Marcelo Ebrard said a 25% duty on Mexican goods would have a multibillion-dollar impact on U.S. consumers, affecting millions of households. “Mexico is the main exporter of finished products like automobiles, computers, TV screens and refrigerators,” he said, adding that tariffs would also raise prices of fresh fruit and vegetables, meat and beer. “This impact will be greater in border states and cities that are big consumers of Mexican goods, like California, Texas, Florida and Arizona,” Ebrard said.

A Wall Street Journal opinion item ( link ) was headlined: The Dumbest Trade War in History; Trump will impose 25% tariffs on Canada and Mexico for no good reason.

House Ag Committee Chairman GT Thompson (R-Pa.): Trump’s tariff policy is a crucial tool. Following the imposition of tariffs on Mexico, Canada, and China by the United States, House Ag Chairman GT Thompson issued the following statement: “President Trump’s tariff policy has been an effective tool in leveling the global playing field and ensuring fair trade for American producers. Look no further than Colombia’s about face on accepting repatriated criminal migrants at the mere threat of tariffs. After four years of the Biden/Harris administration’s failure to expand foreign markets, which led to an inflated agricultural trade deficit of $45.5 billion, America’s producers deserve an administration that will fight for them. I look forward to working alongside of President Trump to support our hardworking producers and to make agriculture great again.”

House Ag Committee Ranking Member Angie Craig (D-Minn.) released the following statement ( link ): “No one wins in a trade war. The last time President Trump started a trade war, costs went up for America’s family farmers and consumers. The same will happen today. The cost of imported goods like oil, lumber, avocados, tomatoes, bell peppers, lettuce, broccoli, cucumbers, onions and mushrooms and other fresh food are likely to go up for Americans. At a time when farmers are struggling with high input costs and the American people continue to struggle with the cost of groceries, these tariffs will make it more expensive for farmers to grow food and for consumers to buy it. Additionally, when American farmers face the inevitable retaliatory tariffs from our trading partners, their profits take a hit. This action is especially questionable since President Trump’s previous administration negotiated our last trade agreement – USMCA — with Canada and Mexico.”

Imported goods.

(Bloomberg)

Tariffs coverage. Depending on carve-outs, this round of Trump tariffs could cover more trade in dollar value than his first-term duties on China. Trump’s four tranches of tariffs on Chinese goods in 2018-19 covered imports valued at around $360 billion at the time. New tariffs on Canada and Mexico plus additional tariffs on China would — if all items are subject to the action — cover imports valued at more than $1.3 trillion in 2023. Canada and Mexico combined supplied about 28% of U.S. imports in the first 11 months of 2024, according to Census Bureau data. China accounted for an additional 13.5%.

Price hikes: From Tonka trucks to tequila. While cars and lumber are obvious price hike targets, some unexpected items could see increases, too, according to the Wall Street Journal ( link ):

Cherry tomatoes: Canada and Mexico supply much of the U.S. market.
Tonka trucks: Made exclusively in China, these toys may see a price jump from $29.99 to nearly $40.
Maple syrup: With most commercial production coming from Canada, costs could rise. Canada and the U.S. are the only two countries that produce this at commercial scale, according to Canada’s agriculture department. More than 60% of Canada’s production is exported to the U.S.
Tequila & avocados: Mexico is the top supplier, meaning Super Bowl snacks and drinks could cost more.
Smartphones: Previously spared, they may now be hit with new tariffs.
Sledgehammers: Already taxed at 25%, additional tariffs could push prices even higher.

Securing the U.S. border and dealing with fentanyl are the two major goals of the Trump tariffs. According to Robert Marbut, former homelessness czar for the first Trump administration, fentanyl has killed more Americans in the past five years than all wars combined in the past 100 years. Marbut criticized Canada’s liberal drug policies and Mexico’s unstable regions, where cartels control the drug trade. He said that if the U.S. government is going to tackle fentanyl, it needs to recriminalize drugs domestically, stop China from sending precursors, get the biker gangs in Canada under control, and force Mexico to rein in the cartels. “Fentanyl is a hundred times more powerful than morphine,” he said. “Fentanyl dusts will kill children, fentanyl dusts will kill adults. So just three grains of salt equivalent will kill anybody.”

Tariffs as a revenue raiser. Peter Navarro, a Trump trade adviser, told CNBC on Friday that the tariff effort can replace the revenue of tax cuts. “Tariffs can easily pay for that,” Navarro said. “President Trump wants to move from the world of income taxes and countless IRS agents to the world where tariffs, like in the age of McKinley, will pay for a lot of government that we need to pay for and lower our taxes.” Perspective: The non-partisan Congressional Budget Office has put the cost of extending the 2017 tax cuts — Trump’s top legislative priority — at $4.6 trillion over 10 years. A 25% tariff on the more than $900 billion in annual imports from Canada and Mexico would raise roughly $225 billion annually or $2.3 trillion over 10 years if the tariffs had no impacts on trade, which many economists see as unlikely.

Of note: Navarro thinks corn exports haven’t been entirely benign. Navarro said that NAFTA had kick-started America’s illegal immigration problem, because when the United States began exporting corn to Mexico after the trade pact took effect, that put Mexican agricultural workers out of jobs, sending some of them into the United States. “That’s where that began, our illegal immigration problem,” he said.

Tariffs impact on the U.S. ag sector. American Farm Bureau Federation President Zippy Duvall wrote ( link ) to President Trump Friday urging him to consider U.S. farmers before proceeding with tariff action. “American farmers and ranchers rely heavily on export markets for their business success, especially during these times of economic distress across rural America,” Duvall wrote. A targeted approach to tariffs, with specific exemptions for fuel and fertilizer imports, Duvall added, could “minimize negative repercussions” for farmers. Mexico and Canada account for around a third of all U.S. agriculture exports, buying $30 billion and $29 billion, respectively. China received around $26 billion of ag products last year, Duvall said.

U.S. farmers face rising costs amid proposed Canadian import tariff. The proposed 25% tariff on Canadian imports is expected to have significant repercussions for U.S. farmers, particularly in their access to potash and fertilizers. Key Impacts:

Increased fertilizer costs: U.S. farmers rely on Canada for 85-86% of their potash. The tariff could raise fertilizer prices by $50 to $75 per ton, cutting into profit margins and potentially reducing crop yields.
Short-term supply challenges: With spring planting nearing, farmers may struggle to meet urgent fertilizer needs, as domestic production accounts for less than 10% of U.S. demand. Many farmers have already purchased and applied fertilizer for the 2025 crop season, potentially mitigating immediate impacts, but farmers are unclear as to whether their undelivered fertilizer from Canada will be impacted.
Long-term market shifts: Importers may seek alternative suppliers, and Canadian producers could absorb some costs, but a more significant price increase is expected for the 2026 crop season.
Broader economic consequences: Higher fertilizer costs may lead to rising food prices, strain U.S./Canada agricultural ties, and provoke potential retaliatory trade measures from Canada.

Survey quantifies Canadian farmers’ concern about impact of tariffs, potential trade war. New data from Real Agriculture’s RealAgristudies ( link ) confirms and quantifies the level of concern in Canada’s agriculture sector if the U.S. implements 25% tariffs on Canada on Feb. 1. Farmers who primarily produce livestock are slightly more likely to expect an impact on their farm business than mixed or primarily crop-focused farmers. Interestingly, there wasn’t much difference in how farmers see the potential impact when you compare age, farm size and geography.

Results of a survey of 660 Canadian farmers between Jan. 23 and Jan. 29 showed: 59% of respondents expect the proposed Trump tariffs will negatively impact their business. Only 7% feel there will be no effect. Another 7% don’t know if there will be an impact, while 27% see a possible impact of the Trump tariffs on their farm business.

When it comes to the likelihood of a trade war that significantly decreases Canadian agricultural exports, 29% of respondents feel that scenario is very likely, while 46% say it’s likely; 11% feel a trade war that hurts ag exports is unlikely.

Livestock producers tend to see a trade war as more likely (88%) than mixed (72%) or primarily crop producers (75%).

In terms of how Canada should respond to the tariffs, 34% of respondents said “all of the above” to including export tariffs on key items to the U.S., dollar for dollar retaliation and cutting off certain U.S. imports into Canada; 23% of farmers see an export tariff on key items like potash and energy as the best response as the best singular option.

· Tariff impact support for some industries. Canadian government officials have said that they would consider bailing out businesses and supporting workers who are most affected. Some industries would be swiftly disrupted: Agriculture, automobiles and energy suppliers, pillars of all three economies, would be upended by blanket tariffs.

Tariff aid for U.S. farmers. During her Senate confirmation hearing on Jan. 23, USDA Secretary nominee Brooke Rollins addressed concerns regarding potential tariffs and their impact on U.S. farmers. She acknowledged the possible adverse effects of such tariffs on the agricultural sector and emphasized her preparedness to implement support measures to mitigate these impacts. Rollins stated that she had consulted with former USDA Secretary Sonny Perdue, who oversaw $23 billion in trade aid to farmers during the previous Trump administration, and expressed readiness to execute a similar approach if necessary. She affirmed her commitment to working with the White House to ensure that any negative consequences of tariff implementations on farmers and ranchers are effectively addressed. While acknowledging the potential challenges posed by the proposed tariffs, Rollins conveyed confidence in Trump’s understanding of the agricultural community’s concerns. She described Trump as “the consummate dealmaker” who recognizes the significant support he has received from rural America and the agricultural sector.

U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements, especially as they see China, Brazil, Russia and Ukraine announcing new trade accords or in the process of inking new ones.

Upshot: This latest tariff announcement underscores the escalating tensions in international trade policies and the potential for significant economic consequences if the disputes deepen. The tariff moves will test (1) the limits of Trump’s honeymoon period in his second term in the White House; (2) the U.S. economy and its tentative victory over inflation; (3) American consumers’ appetite to swallow fresh price increases; and (4) the patience of allies. The move against allies Canada and Mexico is a signal that no country is safe from his push to reshape global trade. Big experiment, big impacts, big risks, both economically and politically.

Iowa Secretary of Ag Weighs In on The H5N1 Battle, Vaccine Potential And Trade Sensitivities

Wed, 29 Jan 2025 13:48:13 GMT

Eggs continue to be a hot topic in the news as supplies are down, prices are up – and expected to go even higher – and consumers are understandably concerned.

At the center of the issue, fanning the on-going problem for poultry and dairy producers as well, is the Highly pathogenic H5N1 avian influenza A virus (HPAI H5N1).

AgriTalk Host Chip Flory broached the topic with Iowa Secretary of Agriculture Mike Naig on Tuesday.

At the heart of their conversation was a two-part question – how does the U.S. address the virus and, in the process, prevent any potential negative ramifications on trade?

Naig says the federal government is taking what he described as a three-legged stool approach to addressing the problem in both industries.

He described the three legs of the stool as being USDA’s Animal and Plant Health Inspection Service (APHIS), individual state animal health officials and industry.

“We work very closely with APHIS on this, meaning that they’re the ones that are providing the indemnity payments to producers. They are providing the disposal and cleanup assistance, but they must work in close collaboration with the states and state animal health officials,” Naig says. “And then, of course, you’ve got to have the third leg, which is industry.”

Biosecurity Measures
Naig noted that while the virus hit the poultry industry hard in 2015, it struck even harder in 2024.

“It’s not just in the Midwest or West, it’s been really all across the country now, affecting the egg laying industry, broilers and turkey production,” Naig says.

A significant positive, Naig says, is that biosecurity measures in the poultry industry appear to be preventing farm-to-farm spread. “The industry continues to get high marks for that, which wasn’t the case in 2015, which was so devastating because we didn’t have those strategies in place.”

“I believe, and our experience has been, that our USDA partners in this regard have been very strong,” he adds.

As Naig addressed the three-legged stool approach the U.S. is taking to addressing the virus in dairy, he says the three partners have more work to do.

“Frankly, there’s been a lot of criticism to share around the three legs, if you will, on how states have reacted, or how strongly USDA should have reacted, and what the industry is doing to try to contain that virus. So, I would say on the dairy side of things, it’s a different story (than in poultry). There’s a lot more work that’s yet to be done to even understand how that virus is impacting those (dairy) herds.”

What Is The Role For Vaccines?
Flory asked Sec. Nagy whether he believes a vaccine could be part of the solution to the virus or whether that would set up too many trade barriers. Flory also asked whether the virus is stable enough for a long enough period of time for a vaccine to be developed that would work effectively.

Both are questions the U.S. is grappling with as it tries to get ahead of the virus in dairy and poultry.

Earlier this month, Reuters reported the U.S. will rebuild a stockpile of avian influenza vaccines for poultry that match the strain of the virus circulating in commercial flocks and wild birds, citing the Department of Agriculture.

Naig told Flory that he believes a vaccine could be developed, with regard to poultry specifically, and its use negotiated into trade agreements.

“Those are challenges, and yet those are things that can be worked on and can be done, but it’s not easily done. I would want to put a flag there,” Naig says.

“I’m supportive of developing … we should try to figure out whether this can be an effective tool. If you’re in the broiler business or if you’re in the turkey meat business or if you’re in the egg business or maybe you’re in the genetics business, those are very different in terms of how you view that vaccine.”

Naig explains part of the different viewpoints on vaccine use have to do with the difference between poultry business segments.

“We need to recognize that those sectors are different in how they’ll view and potentially use a vaccine,” Naig says.

“Don’t treat them all the same. It’ll make way more sense for some than others.”

Naig did not weigh in on vaccine development for the dairy industry specifically.

The full conversation between Naig and Flory on AgriTalk is available below.

Your next read: Think Egg Prices Are Already Too High? USDA Says Retail Egg Prices Could Jump Another 20% in 2025

The Impact of Immigration Reform on U.S. Dairy Farms

Mon, 27 Jan 2025 20:10:06 GMT

The conversation surrounding mass deportation has sparked widespread debate across various sectors of the American economy. Among these, the dairy industry stands out, heavily reliant on immigrant labor to keep up with production demands. Recent reports highlight this dependency, showing that over half of all dairy labor is performed by immigrant workers. In fact, dairies employing immigrant laborers contribute to 79% of the U.S. milk supply. This statistic, brought to attention by the National Milk Producers Federation (NMPF), emphasizes the crucial role of immigrant workers in maintaining this industry.

Growing Reliance on Immigrant Workforce
Dr. Robert Hagevoort of New Mexico State University, in his presentation at the Dairy Cattle Reproduction Council (DCRC) Annual Meetings in Arlington, Texas, in mid-November, suggests that the figures from the NMPF report, dating back to 2015, may even underestimate the current reliance on immigrant labor.

“Dairy herd sizes have grown considerably and so have the number of employees on the farm,” he says.

Reflecting on past immigration policies, Jaime Castaneda, executive vice president of policy development and strategy for the NMPF, points out that immigration issues are not new to the industry. He references President Obama’s administration, which saw significant immigration enforcement actions, resulting in the deportation of 2.7 million individuals over eight years. As a result, President Obama was often labeled the “Deporter in Chief.”

Fast forward, and with newly re-elected President Trump’s tenure, there is an anticipation of stricter immigration policies. His campaign’s promise to tighten illegal immigration has started taking shape through a series of executive actions aimed at revamping the U.S. immigration framework. This has put the dairy industry on high alert.

Preparing for Possible Enforcement Actions
With an estimated 11 million undocumented immigrants in the United States, dairy producers are advised to stay vigilant and prepared. Castaneda urges dairy owners to keep necessary documentation, such as I-9 forms, social security copies, and identification like driver’s licenses, well-organized and readily accessible. Ensuring all paperwork is in compliance with federal and state laws is paramount if faced with an Immigration and Customs Enforcement (ICE) inspection.

Farm owners are also encouraged to have open dialogues with their employees, advising them against actions that might attract legal attention, such as minor traffic violations. Moreover, Castaneda suggests that dairy farmers communicate with peers in the community who also rely on immigrant workers to foster a supportive network.

The Indispensable Role of Immigrants
Voicing a critical perspective on the ultimate survival of U.S. dairy without immigrant labor, Rick Naerebout, CEO of Idaho Dairymen’s Association, asserts that American citizens are typically unwilling to undertake these demanding jobs.

“Americans don’t want these jobs,” he says, underscoring the necessity for immigration reforms that are not only fiscally viable but also ethically sound, benefiting Idaho and the broader United States.

The continued viability of the U.S. dairy industry heavily depends on the backbone provided by immigrant labor. As the nation grapples with immigration policy debates, the livelihoods of those within the dairy sector hang in balance, underscoring the urgent need for balanced reform that considers both economic imperatives and humanitarian values.

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Trump 2.0 Inauguration: An Update

Tue, 21 Jan 2025 14:22:11 GMT

— Trump’s immediate priorities highlighted in new GOP document. Republican lawmakers have obtained a document outlining President Donald Trump’s immediate priorities. The plans align closely with executive orders the incoming administration intends to sign, signaling swift action on key agenda items. Link to document.

— Trump to delay China tariffs, signals shift toward negotiation. President Donald Trump is not expected to impose China-specific tariffs on his first day in office, signaling a strategic shift toward engagement with Beijing rather than reigniting a trade war. According to the Wall Street Journal, the decision reflects Trump’s desire to begin his second term in a negotiating mode, with hopes of striking a new deal with Chinese President Xi Jinping. During his first term, Trump brokered a “Phase 1” trade deal with China, but many of Beijing’s commitments to purchase U.S. goods were not fully realized. While plans are underway for a memorandum directing federal agencies to review trade policies with China, Canada, and Mexico, the approach appears more measured than the aggressive tariff rhetoric from Trump’s campaign. However, sources caution that Trump’s strategy could shift, given his history of abrupt decisions.

— Dollar tumbles as Trump eases immediate tariff concerns. The U.S. dollar suffered a sharp decline on Monday following reports that President-elect Donald Trump would not immediately impose new trade tariffs upon taking office. This development eased fears of an imminent trade conflict, triggering a broad sell-off in the dollar against major currencies.

Market reaction. The dollar index dropped by as much as 1.01%. Key currencies posted notable gains:

Euro: Up 1.3% to $1.0401, one of its biggest single-day gains since late 2023.
Canadian dollar: Strengthened 1.15% to C$1.4319 per USD.
Mexican peso: Rose 1.4% against the USD.
Chinese yuan: Up nearly 1% in offshore markets, trading at 7.274 per USD.
Australian dollar: Increased 1.2% to $0.6263.

Reasons for dollar weakness

Delayed tariff implementation: Trump plans to review trade policies instead of imposing immediate tariffs, according to the Wall Street Journal.
Market expectations: Investors had anticipated aggressive tariffs, so the measured approach spurred a reassessment.
Risk-on sentiment: The reduced likelihood of trade tensions boosted investor confidence.

Broader market impact

European stocks rallied, with the STOXX 600 up 0.3%.
U.S. equity futures surged, with Dow futures climbing 294 points.
Bitcoin hit a record high of $109,071.86 before stabilizing near $106,030.

Analyst insights

Frederik Ducrozet of Pictet Wealth Management emphasized the market’s sensitivity to tariff news, highlighting the potential for negotiations.
Nick Rees of Monex Europe warned of possible targeted levies post-inauguration.
Kathleen Brooks from XTB noted that the absence of immediate tariffs leaves room for further debate within Trump’s team.

Looking ahead. Although immediate tariff threats have subsided, uncertainty lingers over Trump’s future trade policies. Investors will closely monitor developments as federal agencies review key trade relationships, particularly with China, Canada, and Mexico.

— Biden issues family pardons in final minutes of presidency. Former President Joe Biden, in the closing moments of his presidency, issued pre-emptive pardons for several family members, including his brother James Biden. He cited concerns over potential “baseless and politically motivated investigations” targeting his relatives. Biden added: “That is why I am exercising my power under the Constitution to pardon James B. Biden, Sara Jones Biden, Valerie Biden Owens, John T. Owens, and Francis W. Biden. The issuance of these pardons should not be mistaken as an acknowledgment that they engaged in any wrongdoing, nor should acceptance be misconstrued as an admission of guilt for any offense.” The White House made the announcement just minutes before Donald Trump entered the Capitol rotunda for his swearing-in as the 47th president of the United States. This unprecedented move has already sparked widespread debate, further intensifying the political climate as power transitions to the new administration.

— Trump to declare national energy emergency to boost domestic production. President Donald Trump will declare a national energy emergency after his inauguration on Monday to lower energy costs, an incoming White House official announced. The emergency declaration is expected to “unlock a variety of different authorities” to enhance natural resource production, though specific measures were not disclosed. The official emphasized the importance of energy independence in the context of the U.S./China AI race, highlighting the need for domestic energy to power advanced technology. Additionally, Trump plans to sign an executive order to accelerate energy production in Alaska, citing its geostrategic significance and potential for LNG exports to the Asia-Pacific region.

— Trump to sign orders on sex definitions and ending DEI in agencies. President Donald Trump plans to issue executive orders defining sex strictly as male and female and eliminating diversity, equity, and inclusion (DEI) efforts in federal agencies. Announced by an incoming White House official, the measures target cultural issues central to Trump’s campaign. One order, titled “Defending Women from Gender Identity Extremism and Restoring Biological Reality to the Federal Government,” would mandate federal agencies to adopt biological definitions of sex in statutes and regulations. It also aims to restrict taxpayer funding for gender transition healthcare and maintain gender-segregated spaces like prisons and shelters. The second order, “Ending Radical and Wasteful Government DEI Programs and Preferences,” seeks to terminate DEI programs, which critics argue are discriminatory. Both actions align with Trump’s campaign pledges to counter transgender protections and conservative opposition to DEI initiatives.

— Michael Waltz, President Donald Trump’s national security adviser, resigned his seat in Congress. Speaker Mike Johnson (R-La.) now has a slim 218-215 margin in the House. Johnson can lose just one Republican on any vote. Rep. Elise Stefanik (R-N.Y.) is expected to resign in the coming weeks to serve as Trump’s ambassador to the United Nations.

— Vilsack criticizes EPA report on biofuels as uncertain future looms. Outgoing USDA Secretary Tom Vilsack, in one of his final actions, criticized an EPA report ( link ) asserting that the Renewable Fuel Standard (RFS) may have had a “modest but negative” environmental impact. In a Jan. 17 letter to House Speaker Mike Johnson (R-La.), Vilsack argued the report contained significant omissions and overreached in its analysis, failing to consider greenhouse gas effects. As Donald Trump prepares to take office, Vilsack’s pushback highlights uncertainty over the future of biofuel policies, critical to rural economies and championed during the Biden and Obama administrations. Whether Trump and the Republican-led Congress will sustain or alter policies supporting renewable fuels remains to be seen.

— Putin expresses openness to dialogue on Ukraine with Trump. Russian President Vladimir Putin expressed readiness to engage with the United States on the conflict in Ukraine, offering congratulations to President Donald Trump ahead of his inauguration. “We congratulate the U.S. president-elect on taking office,” Putin stated during a televised security council meeting. He welcomed Trump’s efforts to restore direct communication and highlighted the importance of preventing a third world war. Putin emphasized that dialogue with the new U.S. administration should aim for “a long-term peace” respecting the interests of all people in the region, rather than a temporary truce leading to further conflict. Trump recently announced plans for a meeting with Putin to discuss Ukraine, aligning with his campaign promise to swiftly end the war. The two leaders have not yet spoken directly since Trump’s election victory in November.

— Trump appoints Caroline Pham as Acting CFTC Chair. President Donald Trump has chosen junior Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham as acting chair of the agency. The five-member CFTC voted on Monday to confirm her in the role, though the decision has not been publicly announced. Pham, a proponent of regulatory clarity for digital assets and advocate for “regulatory sandboxes,” will lead the agency until a permanent chair is confirmed by the Senate.

Pham succeeds Rostin Behnam, who plans to step down as chair on Jan. 20 and leave the agency on Feb. 7. Other contenders for the permanent chairmanship include Summer Mersinger and Brian Quintenz.

The CFTC oversees the $400 trillion swaps market and is expected to play an increasing role in digital asset regulation. Pham, nominated by President Biden in 2021, previously worked at Citigroup Inc.

— Kailee Tkacz Buller will be chief of staff at USDA under Secretary nominee Brooke Rollins. She previously has been president and CEO of the National Oilseed Processors Association.

USDA Chart

(USDA)

More Action Needed By Mexico Before Reopening Border for Feeder Cattle Imports, Says Vilsack

Sun, 19 Jan 2025 20:54:32 GMT

A letter sent Friday by outgoing USDA Secretary Tom Vilsack to Mexico’s Secretary of Agriculture Julio Antonio Berdeguê acknowledges the progress made in reopening cattle trade between the two countries following the detection of New World Screwworm (NWS) in Mexico, but says more action is needed to resume trade.

Key developments:

Technical collaboration between U.S. and Mexican teams
Full technical agreement on protocol reached on Dec. 12, 2024
Ongoing work to approve pre-export NWS inspection facilities.

Vilsack emphasizes the importance of expediting the approval process for these facilities to resume safe export as soon as possible, citing the significance of trade for a safe and affordable food supply.

The letter also addresses efforts to combat the spread of New World Screwworm:

Emergency funding has been authorized to increase sterile fly production
Production has increased fivefold in the past year
Enhanced regional response through increased dispersal, surveillance, education, and partnerships
Acknowledgment of Mexico’s partnership in sterile fly releases, movement controls, and surveillance
Shared goal to push the pest south to the Darien Gap

Vilsack requests immediate support from Secretary Berdegué for the establishment of two planned sterile fly dispersal centers in Southern Mexico to strengthen current efforts.

The letter maintains a cordial and cooperative tone throughout, emphasizing:

Shared commitments and goals
Acknowledgment of Mexico’s efforts and partnership
Expressions of gratitude for collaboration
Requests for continued support and expedited action

Industry sources say specific testing will take place Monday, Jan. 20, and that and other tests will go a long way in establishing a trade resumption timeline.

NWS Trade Impacts Started in November
As previously reported, USDA’s Animal and Plant Health Inspection Service (APHIS) suspended imports of live cattle and bison from Mexico on Nov. 22, 2024, following the detection of New World screwworm (NWS) along Mexico’s southern border. This pest can have a significant negative impact on cattle health, and U.S. authorities have been working to develop protocols to screen animals coming into the country.

Several factors are influencing the timeline and pace of reopening:

Facility inspections: Both countries have agreed on protocols, but implementation requires facility inspections and approvals.
Quarantine period: A seven-day quarantine after animal checks
Port readiness: The most important port to get moving again is Santa Teresa, New Mexico.

The temporary suspension of cattle imports from Mexico has had notable effects on the U.S. cattle market:

Reduced supply: About 250,000-300,000 fewer head of cattle are estimated to have been imported due to the suspension.
Price support: The trade disruption has been supporting feeder cattle and calf prices in the U.S.

Government Designates $103 Million to Monitor Avian Influenza in Farmworkers

Mon, 06 Jan 2025 20:32:07 GMT

The U.S. Department of Health and Human Services (HHS) announced on Jan. 3 that it will award $306 million to continue its H5N1 Avian Flu response. Although the Centers for Disease Control and Prevention’s assessment of the risk of avian influenza to the general public remains low, USDA and HHS plan to collaborate with federal, state, local, industry and other stakeholders to protect human health, animal health and food safety, a release said.

“While the risk to humans remains low, we are always preparing for any possible scenario that could arise. These investments are critical to continuing our disease surveillance, laboratory testing, and monitoring efforts alongside our partners at USDA,” Secretary Xavier Becerra said in a release. “Preparedness is the key to keeping Americans healthy and our country safe. We will continue to ensure our response is strong, well equipped, and ready for whatever is needed.”

Administration for Strategic Preparedness and Response said it will award approximately $183 million in additional funding for regional, state and local preparedness programs:

$90 million to the Hospital Preparedness Program (HPP)
$10 million to the National Emerging Special Pathogens Training and Education Center (NETEC)
$26 million to the Regional Emerging Special Pathogen Treatment Centers (RESPTCs)
$43 million to the Special Pathogen Treatment Centers (SPTCs) Avian Influenza Preparedness and Response Activities
$14 million to replenish equipment and supply caches for the National Disaster Medical System (NDMS)

CDC will award approximately $111 million in funding for additional enhancements to our ability to monitor H5N1 at the local, state and national levels:

$103 million to jurisdictions for increased monitoring of individuals exposed to infected animals, testing, and outreach to high-risk populations (such as livestock workers)
$8 million to manufacture, store, and distribute additional influenza diagnostic test kits for virologic surveillance

National Institutes of Health will award approximately $11 million in funding for additional research into potential medical countermeasures for H5N1:

$11 million to the Centers for Excellence for Influenza Research and Response contracts

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10 Understated Things Economists Say Could Impact Agriculture in the New Year

Tue, 31 Dec 2024 12:47:56 GMT

This past year was definitely full of surprises, but there were also happenings in agriculture that economists warned about at the end of 2023.

The bleak outlook for commodity prices, along with elevated interest rates, created a downturn in the ag economy, which is something many economists warned would happen. It’s the speed of which margins crumbled that might have been the bigger surprise.

The latest Ag Economists’ Monthly Monitor asked economists if the U.S. was either in a recession or on the brink of one. The majority of ag economists say U.S. agriculture is ending the year in a recession.

56% of ag economists responded by saying agriculture is currently in a recession, which is up from the 53% who responded that way in October.
81% of economists surveyed said the U.S ag economy is on the brink of a recession, which is a significant jump from the 56% of economists who responded that way in the October survey.

One occurrence that wasn’t on anyone’s radar in 2023: H5N1. What was first thought to be a mystery illness impacting dairy herds in Texas was later confirmed as Highly Pathogenic Avian Flu, the first time the disease was detected in mammals.

At the end of 2024, what are economists watching in 2025? In Farm Journal’s latest Ag Economists’ Monthly Monitor, we asked economists: “What’s the one factor impacting the ag economy that’s not being talked about or covered by the media enough right now?”

From trade to deregulation plus numerous unknowns in a new administration, economists have no shortage of issues they’re watching in the new year.

Here’s What Economists Are Saying:

“The media seems consumed with the negatives of a Trump administration/Republican trifecta. It’s certainly good to be aware of the challenges with any political transition, but more forward thinking on what is positive, would be helpful: the outlook for taxes, biofuels policy, trade deals with agriculture included, deregulation all seem to be potential positives we could be talking about more.”
“Prospective tariff war is being downplayed, despite published research measuring expected range of damage.”
“Farmer attitudes toward alternative land use: CRP, solar and other forms to help diversify incomes.”
“Policy uncertainty is high right now. Will tariffs be imposed and if so, what will be the reaction of other countries? Will the new Administration take regulatory actions that favor or hurt the biofuel industry? What will be the outcome of debates over tax and budgetary policy? Will economic assistance to the farm sector be approved during the lame duck session or in early 2025? What about a new farm bill? Many people are making assumptions about how these questions will be answered, but we don’t know.”
“Farm income varies greatly by region. While we often focus on the Midwest and the financial health of that region, it is also important to notice that regions in the southern U.S. are really struggling.” It is also important to watch what production adjustments producers make to cope with today’s tighter operating margins?
“Could federal budget cuts/austerity dramatically change/reduce the federal farm income safety net?”
“Cash rent prices staying constant during a downturn in crop prices.”
“Let’s be clear — the clean fuels tax credit goes to the fuel producer, not the farmer. It enables market access into the biofuels market for the farm economy, but the ability for the farm economy to capitalize upon it is hamstrung by credit levels that have incentivized large inflows of foreign feedstocks at the expense of literally homegrown feedstocks like SBO.”
“The Brazil real is depreciating, which eventually leads to more U.S. competition.”
“China, Europe, Mexico and others know what to expect out of Trump. They’ve seen it before. Everyone is discounting the possibility that Trump’s tariff threat could result in some pre-emptive trade agreements that benefit us here in the states. The U.S. is the biggest buyer of consumer goods in the world. They can’t afford to cut us off. Note that I said consumer goods, not commodities.”

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