AGP Executive Report

Diesel Relief for Farms: President Trump temporarily expanded access to tax-free red-dyed diesel on U.S. highways, waiving penalties and deferring the federal excise tax through 2026—aimed at easing record diesel costs hitting trucking and agriculture, though experts warn savings may be limited by details. Farmer Stress Signals: A Purdue/CME Group Ag Economy Barometer found higher input costs became the top concern for U.S. farmers in September, with weaker sentiment and declining farm financial performance. USDA Seed Security Push: USDA announced a $180 million Seed Sovereignty Initiative to strengthen the National Plant Germplasm System, including sequencing and using AI to speed breeding against pests and diseases. Aquaculture Court Fight: A judge allowed a Conservation Law Foundation lawsuit to move forward against Cooke Aquaculture USA over alleged Clean Water Act permit violations in Maine. Dairy Program Funding Clash: The Wisconsin Cheese Makers Association urged USDA to reverse a new 25% cost-share requirement for Dairy Business Innovation Initiatives, warning it could halt grants and technical help. H-2A Wage Rule Deadline: A court set a tight Dec. 30 timeline for a new adverse effect wage rate calculation for H-2A farmworkers. Food Safety Reminder: Experts urged apple pickers to stop wiping fruit on clothing, noting outdoor contamination risks like wildlife droppings and germs.

Beef & Meat Processing Policy: President Trump signed an executive order aimed at letting ranchers butcher, process, package, and sell their own meat privately, with USDA tasked to investigate violations, modernize inspections, expand licensing, and create a loan program for smaller operations. Farm Energy Relief: Trump also signed an order temporarily easing limits on tax-exempt red-dyed diesel, a move tied to soaring diesel costs for farmers and truckers; Missouri separately expanded dyed-diesel and weight flexibility for harvest through Oct. 30. Solar Farming Win: A Massachusetts third-generation farmer’s 2.2-acre agrivoltaic broccoli-and-sweet-corn setup under 832 solar panels earned “Solar Farmer of the Year,” highlighting growing interest in dual-use solar. Food Prices Watch: The UN FAO reported September world food prices rose, driven by transport disruptions, weather shocks, and higher cereal and sugar prices. USDA Animal Health: USDA planned oral rabies vaccine bait drops in parts of western North Carolina and Alabama, targeting pets and wildlife. Local Food Support: A new South Dakota diaper bank nonprofit began monthly distributions, underscoring ongoing rural household needs.

Farm Bill Watch: House Ag Committee Chair Glenn “GT” Thompson told Missouri farmers farm bill details are being worked ahead of the lame-duck session, with nutrition still a sticking point and optimism around year-round E15. Grain & Storage: CHS says U.S. grain storage capacity hasn’t kept up with production, creating bottlenecks and quality issues as corn yields hit record levels; CHS points to new storage and handling investments. Rural Resilience: Texas A&M and University of Arkansas researchers warn rural areas tied closely to agriculture are more exposed during downturns, but regional partnerships can help cushion shocks. SNAP Changes: New York counties are bracing for SNAP cost and administrative shifts after federal funding responsibility changes. Drought Relief: USDA designated seven Kansas counties as primary natural disaster areas, unlocking FSA emergency loans for drought-impacted producers. Food Safety: FDA closed its Cyclospora probe tied to Taylor Farms Mexico iceberg lettuce, finding a strong link to the Mexico site. Wildlife Health: North Carolina will drop oral rabies vaccine baits across western counties to protect people, pets, and wildlife. Agribusiness Spotlight: Minerva Dairy named Official Butter of the World Food Championships in Indianapolis. Local Economy: Halifax County, N.C. reports nearly $1B in investment and 5,656 jobs across agriculture/food processing and other key sectors.

Farm Safety Net & Policy: U.S. Sen. Jon Husted and Agriculture Chair John Boozman visited Ohio’s Cooper Farms Hatchery, touting Farm Bill changes and ARC/PLC payments expected to boost Ohio producers. Food Prices & Trade: A report warns Trump tomato tariffs on Mexico could squeeze restaurant budgets and end the “free chips and salsa” tradition as tomato costs rise. Local Food Rules: Ellsworth, Maine food shop owners are split over a proposed “food sovereignty” ordinance that could ease licensing for small producers selling directly to consumers. Water & Flood Relief: Hatch, N.M. held an emergency meeting after flooding, with officials weighing disaster declarations and urging residents to document farm and home damage for relief. Drought & Wildfire Risk: Arkansas paused DOT mowing in severe drought areas to reduce wildfire risk, with crews reassessing conditions for when work can resume. Research & Food Science Investment: UMass is set to expand its food science facilities with a $120M “Future of Food” initiative, adding a research center and food innovation hub. Agriculture Exports & Trade Missions: Montana Gov. Greg Gianforte leads a trade mission to India and Sri Lanka highlighting chickpeas and lentils, with India buying millions in Montana pulse crops.

SNAP Enforcement: Indiana retailers have not been fined over the state’s SNAP restrictions on candy and soda, even as the USDA’s Food and Nutrition Administration says it has taken 61 enforcement actions this year for other violations. Hemp/THC Policy Fight: A federal “hemp THC ban” is being contested after Congress delayed its start date, putting many impairing hemp product businesses—and the farmers tied to them—on edge. Food Safety: Mexico says the FDA’s cyclospora investigation tied to Taylor Farms iceberg lettuce didn’t conclusively show how contamination happened, even as the FDA closed the probe citing a strong link. Farm Costs & Energy: Diesel prices remain a major pressure point for farmers, with record-high fuel costs and global oil/diesel tightness driving higher harvest expenses. Rural Support: SBA disaster loans are available for small businesses and agricultural co-ops hit by 2025 moisture damage in parts of Indiana and Kentucky. USDA Nutrition Programs: Shenandoah County Public Schools will keep sponsoring USDA afterschool meals, offering free meals at multiple sites for students who stay late. Agritourism: A new pumpkin patch on a former beef ranch in Washington state is leaning into family-friendly “agritainment” to keep farm income diversified.

Diesel Shock for Farm Budgets: Diesel prices hit record highs, squeezing harvest costs and raising fears of break-even losses for farmers, with G7 leaders agreeing to release fuel reserves after U.S. pressure. Water Cuts, Fallowing Fight: Mexicali Valley farmers are pushing for compensation after Colorado River allocations were cut by 616 million cubic meters, with officials signaling no pay for mandatory fallowing. USDA Disaster Credit: USDA announced natural disaster physical loss loans and disaster-area designations for Midwest tornado and wind damage, with deadlines set for producers to apply. Farm Safety Net Moves: USDA opened enrollment for 2026–27 price and revenue safety-net programs and completed a first base acre increase in two decades. Food Safety Alert: FDA closed its Cyclospora investigation tied to Taylor Farms Mexico iceberg lettuce, finding a strong link to the supplier and facility. Regenerative Push: USDA expanded its regenerative agriculture pilot to $1 billion, aiming to lower production costs and boost resilience.

Diesel Costs Hit Harvest: Diesel prices surged as harvest kicked off, squeezing Ohio farmers and other rural businesses; the American Farm Bureau is pressing for federal fuel-cost relief while Ohio lawmakers moved to suspend motor fuel taxes for 90 days. Food Safety—Cyclospora Link Confirmed: FDA says Cyclospora was found in environmental samples tied to Taylor Farms de Mexico and a lettuce grower site, closing the investigation into the outbreak that sickened 12,883 people across 21 states. USDA Forest Rule Comment Deadline: Pennsylvanians have until Oct. 6 to comment on USDA’s proposal to roll back the Roadless Area Conservation Rule in about 25,000 acres of the Allegheny National Forest. Hemp THC Policy in the Spotlight: A federal “hemp THC” ban is delayed again, but the industry is bracing for a possible Dec. deadline as Congress debates regulation vs. elimination. Water Pressure From Data Centers: Indiana’s plan to use Kankakee River water for an Amazon data center cooling system is drawing scrutiny from downstream county officials worried about fresh-water impacts. Trade & Inputs: Japan may decide sooner on lifting its fresh US potato import ban, while G7 countries agreed to release diesel and crude from emergency reserves to cool record prices.

Diesel Shock Hits Rural Supply Chains: AAA says national diesel averages about $6.39/gal, up sharply from a year ago, squeezing owner-operator truckers who haul food and essentials and are cutting trips or parking rigs. Fuel Relief via G-7 Reserves: The G-7 agreed to release 100 million barrels of diesel, gasoline and crude from emergency stockpiles after U.S. pressure over a potential diesel export ban—aimed at easing global prices. Food Safety Fallout—Cyclospora Linked to Taylor Farms: FDA closed its cyclospora investigation, saying it found the parasite in Mexico at the Taylor Farms de Mexico wastewater tank and a lettuce drainage ditch; the outbreak sickened nearly 13,000 across 21 states. Conservation Funding Boost: USDA expanded its Regenerative Pilot Program from $700M to $1B for FY2027, with NRCS adding more locally tailored practices and lowering barriers to entry. Rural Comms Policy: A bill passed by the House would keep AM radio standard in new vehicles, a lifeline for farm and rural communities. Global Food Prices Up: UN/FAO reports September food prices rose on tighter supplies and shipping uncertainty, with sugar, cereals and vegetable oils leading.

El Niño & Rain Disruptions: A record-setting El Niño is driving torrential rain across the Corn Belt, parking combines and raising grain-quality worries from Nebraska to Ohio. Diesel Shock & Policy Pressure: Economists warn a U.S. diesel export ban could push U.K. inflation near 5%, while the G7 agreed to release 100 million barrels of oil/diesel from emergency reserves to ease fuel stress. Drought Watch: Colorado’s warmest water year on record ends with most of the state still in drought, and southwest Missouri cattle producers say they need more rain to refill creeks and fall pastures. Soil Health Research: Kentucky State University is adding multi-year field findings on biochar’s potential to improve soybean soil conditions and resilience. Farm Safety Net: Mississippi producers are set to see about $423 million in improved ARC/PLC payments as USDA implements parts of the Working Families Tax Cuts Act. Water Infrastructure: Groundbreaking begins on Friant-Kern Canal pump station replacements to restore delivery capacity for San Joaquin Valley farms. USDA & Land-Grant Partnerships: USDA’s Agricultural Research Service administrator visited South Carolina State to push research collaboration with the 1890 system. Trade & Sugar: Global sugar subsidies near $1.4B are fueling calls for a U.S. Section 301 investigation as U.S. producers seek fairer competition. Regulatory/Access Debate: Public comments overwhelmingly oppose potential changes to national forest rules that could expand motorized access. Livestock & Wildlife: Utah may see more sandhill cranes wintering in the Uintah Basin, boosting hunting permits as farmers brace for crop damage.

Farm Safety Net: House and Senate Agriculture leaders highlighted $13.8B in ARC/PLC improvements now being administered by FSA, including higher reference prices and expanded base acres—aimed at helping producers manage volatility. Diesel & Food Costs: Record diesel prices are feeding into grocery distribution costs, with analysts warning more price pressure ahead for consumers and farm-linked freight. Trade & Beef Politics: South Dakota House candidates clashed over Trump’s beef import approach and tariffs, with critics warning it could open the floodgates for foreign beef. Water & Compliance: Washington’s Supreme Court questioned whether Ecology followed state law before a ~$260K water-use penalty against a Moses Lake-area farmer, focusing on required written technical help. Wildfire Health Aftermath: A study found elevated metals in urine of Maui wildfire residents up to 18 months later, linking long-term exposure to respiratory harm. Invasive Species Research: Researchers reported biochar made from an invasive weed can help sorghum withstand salt stress, pointing to practical soil fixes for drylands. Community Food Aid: Illinois State’s Million Meal Pack drew large volunteer turnout to assemble 1M meals for food banks, underscoring ongoing hunger pressure. Offshore Wind vs. Fossil Fuel: New York and other states sued to block federal payments tied to canceling offshore wind projects and redirecting money to fossil plants.

EPA Court Fight: A coalition led by Missouri AG Nick Brown is suing to restore federal greenhouse gas limits after EPA rolled back 2024 Carbon Pollution Standards for large power plants, arguing the change will worsen health and climate impacts. Farm Fuel Relief: Missouri Gov. Kehoe issued an emergency order letting farmers and farm-licensed haulers use red-dyed diesel on state highways during harvest, and temporarily raised weight limits to move more crop. Diesel Pressure on Harvest: Multiple reports highlight record diesel prices squeezing farm earnings and raising pressure on policymakers to expand access to red-dyed diesel or consider other relief. USDA REAP Update + Solar Lawsuit: USDA published a final REAP rule for the Rural Energy for America Program, while farm and solar groups sued USDA over changes they say effectively block on-farm solar funding. Farm Bill Timing: Sen. John Boozman says Farm Bill 2.0 is moving after Senate Agriculture Committee action, but final votes likely wait until after the November election. Trade for Meat Exports: U.S. and China talks are seen as a chance to tackle technical barriers affecting U.S. pork and beef testing requirements for China. Water Quality Litigation: Ongoing Lake Erie/Maumeee River Clean Water Act litigation could mean stricter pollution rules for agricultural operations in the basin. Energy Storage at Biorefinery: Antora announced a large thermal battery project at Pratt Energy’s Kansas biorefinery, aiming to support operations and create jobs.

Diesel squeeze on farms: South Dakota Gov. Larry Rhoden signed an executive order easing some rules for hauling agricultural goods as harvest-season diesel costs stay high, expanding a 10% overweight allowance and suspending certain overweight trip permits—though one ag leader said it “doesn’t do anything” to truly fix the problem. Beef price pressure: U.S. Agriculture Secretary Brooke Rollins visited Wisconsin to address rising beef prices, pointing to strong demand and a limited domestic cattle supply; the administration’s 90-day waiver on out-of-quota ground beef imports drew pushback from cattle groups. Rural housing funding risk: A Politico report says more than $230M in USDA Single Family Housing Direct Home Loan funds could expire at fiscal year-end, threatening help for rural low-income homebuyers. Regenerative push: USDA is boosting regenerative agriculture funding, including a $1B regenerative pilot program aimed at lowering production costs. Trade and input costs: Ongoing U.S.-China tariff talks and related uncertainty continue to ripple through farm markets, while U.S. diesel and freight costs remain a recurring stress point for producers. Food safety: USDA announced a recall of over 2,000 pounds of frozen pork sausage links due to possible hard plastic contamination.

USDA-HUD Housing Streamlining: USDA and HUD signed a “historic” MOU to streamline environmental reviews and inspections tied to affordable housing, aiming to cut red tape for rural communities and homebuyers. Diesel Squeeze for Ag: EIA data show on-highway diesel easing from last week’s highs, but freight rates remain elevated; Arkansas and North Dakota moved to temporarily ease dyed-diesel rules for farmers and loggers as costs bite. Trade Pressure on Farm Inputs: Canada’s tariff retaliation strategy is hitting politically important states, including dairy and farm machinery, adding uncertainty for US agriculture supply chains. Drought Impacts Water Reliability: Colorado’s Blue Mesa Reservoir has fallen below 20% full, threatening recreation and livelihoods tied to the water system. Crop Watch—Corn and Cover Crops: USDA grain stocks show corn supplies up year-over-year while wheat is down; a new national cover crop survey reports continued adoption growth. Food Safety: USDA recalled 2,000+ pounds of frozen pork breakfast sausage due to possible plastic contamination, warning some product may still be in restaurant freezers. Local Harvest Update: Michigan’s early apple harvest is underway in Oceana County, with some varieties already mature.

U.S.-China Trade: After Xi’s Washington visit, the U.S. and China agreed to cut tariffs on about $60B in “non-sensitive” goods, with China lowering duties on U.S. corn, wheat, sorghum, meat, dairy and vegetable oils/meal—while soybeans were excluded. Farm Costs & Fuel: Diesel prices remain a major pressure point for farmers and rural businesses, with Nebraska’s Gov. Pillen pushing a federal diesel export ban even as some lawmakers warn it could raise pump prices. Supply Chain & Policy: The National Farmers Union urged the Surface Transportation Board to reject the proposed $85B Union Pacific–Norfolk Southern merger, arguing consolidation would mean higher rates and less reliable service for farm shipments. Regulation & Courts: A coalition of 15 states and Harris County sued the FAA over its environmental review for expanded drone package delivery rules, saying the analysis didn’t adequately cover safety and environmental impacts. Weather & Fieldwork: Persistent rain has stalled harvest in parts of the Midwest, with farmers hoping to get back into fields as conditions ease. Border Enforcement: CBP seized about 450 pounds of cocaine worth ~$6M from a commercial truck headed to Canada, underscoring ongoing outbound smuggling risks. Local Agriculture Life: Volunteers built a new playscape at Austin’s Doyle Community Center, reflecting how community projects keep momentum even as families face rising costs.

USDA Trade Leadership: Trump sent Greg Ibach’s nomination to lead USDA’s Trade and Foreign Agricultural Affairs, aiming to expand export markets and cut trade barriers if confirmed. Diesel Pressure on Farms: The White House urged the EU to draw down emergency diesel inventories to lower global prices, as diesel costs become a political headache in farm states. Georgia Midterms & Ag Costs: Georgia farmers face election-year pressure from tariffs, competing imports, and higher prices; a Wall Street Journal poll shows Trump’s approval slipping in the state. State Fuel Relief: Georgia Gov. Brian Kemp suspended the state gas tax for 30 days, citing soaring prices tied to the Iran war and diesel impacts on farmers. Rice Market Shift: US rice growers are pushing more jasmine/aromatic rice—about 50,000 acres in 2026—to reduce import dependence and meet new acreage certifications. Seafood Labeling: Tighter seafood labeling rules keep moving forward, focusing on clearer origin and harvest information for shoppers. Great Lakes Invasive Carp: Senate Democrats urged faster action on the Brandon Road barrier after delays and new detections of silver carp near Lake Michigan. APHIS Biotechnology Reviews: APHIS opened comment on petitions seeking deregulated status for herbicide-resistant and insect-protected genetically engineered cotton. School Meals Funding: Federal lawmakers introduced a bill to permanently raise school meal reimbursement rates to help operators facing rising costs.

Trade & Tariffs: Trump’s Canada fight escalated as U.S. import bans on some Canadian goods (including alcohol, dairy byproducts, and motorcycles) took effect at 12:01 a.m. ET Tuesday, adding pressure to cross-border farm and food supply chains. Immigration & Beef Supply: Cattle groups warn ICE enforcement in southwest Kansas is disrupting the “Golden Triangle” beef processing workforce, with cattle slaughter down sharply and more price risk ahead. U.S.-China Ag Markets: The U.S. and China pledged tariff cuts on $60B of goods after the Trump-Xi summit, but soybeans were notably excluded—keeping uncertainty high for U.S. soybean and related farm income. Fuel Costs for Farmers: States moved to blunt diesel and gas spikes; California fast-tracked winter-blend gasoline, while other states took tax or emergency steps—fuel costs remain a direct hit to harvest budgets. Organic Transition Support: Arizona State University launched “Kernel,” a new organic mentorship program starting Oct. 1 to help producers transition and reduce reliance on imported organic. Conservation on Working Lands: USDA/NRCS funding is backing wetlands and floodplain restoration on agricultural lands, while Pennsylvania NRCS may offer another round of conservation program funding. Food Safety: USDA/FSIS recalled breakfast sausage over potential plastic contamination, and FDA added two new unnamed outbreaks (Listeria and E. coli O157:H7) with 65 sickened so far. Wildlife & Land Management: Montana FWP opened public comment on habitat and prescribed fire proposals, and California released a new bobcat study pointing to vehicle collisions as a leading cause of death.