AGP Executive Report

New World screwworm threat: USDA confirmed the flesh-eating New World screwworm in South Texas for the first time in decades, triggering quarantines and livestock movement restrictions around the detection area as officials ramp up sterile fly releases and surveillance to protect cattle and wildlife. Drought squeezing cattle and feed: USDA data show 57% of U.S. cattle inventory is in moderate drought or worse areas, with pasture and hay supplies also stressed—raising pressure on ranchers and contributing to record retail beef prices. Grain market pressure: Chicago wheat slid for a second straight week on favorable Plains weather and harvest pressure, while corn and soybeans hovered near multi-month lows. Global food price snapshot: FAO says world food prices were broadly stable in May, but cereal prices rose as weather and higher fuel and fertilizer costs keep risk elevated. Farm policy and inputs: A House bill advanced with rural ag funding for Western Montana, while atrazine remains a flashpoint as critics push back on its continued legality amid water concerns. Energy ripple into farm belt: Reuters reports crude inventories at Cushing, Oklahoma are draining fast as global supply shortfalls push refiners to snap up WTI-linked crude—an input-cost and logistics watch for the farm belt.

New World screwworm hits Texas again: USDA confirmed the first U.S. case in decades in a Zavala County calf, triggering quarantine zones, animal surveillance, and sterile-fly releases—while Kansas and other states warn ranchers about possible movement restrictions and urge early treatment; State drought pressure: Colorado declared a statewide drought emergency as record-low snowpack and dry conditions worsen, and Iowa’s drought eased in pockets but remains mostly extremely dry; Farm economy + costs: USDA reported grocery prices up 0.7% from March to April and 2.9% year over year, adding to producer and household strain; Water and environment watch: EPA moved microplastics and pharmaceuticals onto its drinking-water watchlist, while debates continue over USDA’s roadless rule reversal; Local ag life: Inland Northwest strawberry u-pick farms opened early, and Michigan’s tree fruit research gets a boost via the Michigan Tree Fruit Commission investing in MSU work.

Livestock Health Alert: USDA confirmed a New World screwworm detection in a three-week-old calf in Zavala County, Texas, triggering quarantine and sterile-fly response as officials warn ranchers to watch for wounds. Grain & Markets: Grain futures slid overnight with traders citing bearish charts, good early weather, and added anxiety tied to the Texas screwworm scare; USDA export sales are on deck. Farm Policy & Payments: USDA opened a window for landowners to update crop base acres for future Ag Risk Coverage and Price Loss Coverage payments, with decisions tied to landowner notices and a deadline of Aug. 31, 2026. Rural Development: USDA Rural Development awarded Clay County, Illinois an $800,000 grant for a new medical building to expand primary and behavioral health services. Dairy Clean Energy: Clean Energy Fuels’ East Valley Cattle in Idaho began producing and injecting RNG from manure into the pipeline. Farm Stress & Inclusion: A University of Guelph study found women farmers face higher mental health risks, linked to undervaluation and extra unpaid work. Food Access: Feeding America West Michigan will run a mobile food pantry in Kingsford on June 10. Trade & Consumer Demand: USDA elevated its “Plant Not Plastic” cotton push, aiming to boost demand for U.S.-grown cotton over synthetics.

China Biotech Screening: A bipartisan House bill would tighten U.S. review of investments in Chinese biotechnology, adding biotech to COINS-style national security screening (with agricultural biotech and basic research carved out). Farm Input Costs: Tariffs on farm equipment were temporarily cut from 25% to 15% through end of 2027, aiming to lower machinery costs for producers. SNAP Work Rules: New SNAP work requirements are leaving many low-income households scrambling as deadlines approach, with critics warning the changes weaken a key safety net. Screwworm Alarm in Texas: USDA says a suspected New World screwworm is moving closer to the U.S. border; officials are testing samples and ramping up on-the-ground response to protect cattle. Avian Flu Border Intercepts: CBP seized 337 hatching eggs from Germany in Cincinnati over HPAI risk, turning them over to USDA for handling. Ethanol Push: Five Midwest senators defended E15 and year-round sales, arguing it can cut gas prices and has not harmed refineries. U.S.-Sugar Automation: U.S. Sugar launched a major autonomous tractor fleet across South Florida sugarcane operations, signaling more automation in farm production. Weather & Crops: Multi-day rain helped parched parts of Montana, but may be too late for already-stunted winter wheat.

Offshore Wind Legal Fight: Seven Northeast states sued the Trump administration over a nearly $1 billion deal to halt TotalEnergies’ East Coast offshore wind projects, arguing the cancellation was unlawful and would cost jobs. US-India Ag Talks: The U.S. India Business Council hosted an agriculture dialogue in Washington focused on boosting productivity, soil health, farmer support, and tech adoption. SNAP Rules and Food Access: New USDA SNAP retailer requirements starting Nov. 4, 2026 will push stores to carry a wider mix of foods, while Missouri’s budget cut $2 million from Double Up Food Bucks, threatening fresh-produce matching at farmers markets. Farm Inputs and Costs: Farmers and groups continue pressing on fertilizer price pressure and market power concerns as costs squeeze margins. Aquaculture Feed Crunch: The aquafeed sector is bracing for fishmeal and fish oil shortages, with companies debating how to scale novel, fish-free ingredients. Water Stress on the Farm Front: An Iowa town’s new well is pumping nitrate-contaminated water, highlighting how water quality problems can derail rural growth. Trade Policy Watch: USDA’s latest ag trade outlook points to mixed momentum—export optimism alongside tariff uncertainty and global competition.

Flesh-eating screwworm threat: USDA says New World screwworm has been detected about 25 miles from the U.S. border in Mexico’s Coahuila, reviving fears for Texas ranching and public health; Texas Rep. Chip Roy is asking USDA Secretary Brooke Rollins for a formal briefing on the response and potential economic damage. Cattle squeeze and beef prices: The U.S. cattle herd hit a 75-year low, tightening supply as drought, higher input costs, and fewer cattle operations push beef prices higher. Fertilizer price-fixing lawsuit: A Virginia dairy filed a class action in Missouri accusing major fertilizer firms of conspiring to inflate NPK prices, pointing to massive market control and years of “supracompetitive” pricing. Farm policy and markets: Farmers and officials keep tracking input costs and trade uncertainty as planting conditions vary across the Upper Midwest. Local ag community: Eastern Idaho 4-H enrollment is surging, with barns running short as more kids join swine, sheep, and goat projects. Other ag-adjacent: Oklahoma AG moved to block a proposed aluminum smelter over emissions and environmental concerns.

Tariff Tweaks for Farm Equipment: The White House signed an order adjusting Section 232 tariffs on copper, aluminum and iron derivatives, cutting some agricultural machinery and HVAC-related items to 15% (from 25%) and adding new 25% categories like steel racking and aluminum printing plates, with changes starting June 8 and lasting through Dec. 31, 2027. Midwest Trade Hope: After the U.S.-China summit, Midwest farmers are watching for steadier China-U.S. ties to ease uncertainty that’s been weighing on U.S. farm planning. Roundup Settlement in Legal Limbo: A proposed $7.25B Roundup cancer settlement could face delays as an opponent seeks to move the case to federal court, complicating Missouri opt-out deadlines while the Supreme Court weighs related state-court limits. Water Stress in Orchards: Oregon irrigation districts and growers are bracing for summer shortfalls after a weak snowpack left basin snow water equivalent at just 51% of the median last year and near zero now. Food-Price Pressure and Competition: A DOJ-led antitrust settlement targets Agri Stats for sharing sensitive data among meat processors, with critics pointing to consolidation pressures behind higher grocery prices. Specialty Crop Aid: USDA set enrollment and payment rates for specialty crop assistance, including a $1.7B relief package tied to California visits. El Niño Watch: The UN weather agency warns a moderate-to-strong El Niño could raise heat and extreme-weather risks, with knock-on effects for drought and heavy rainfall.

Drought Stress on Crops & Pastures: A South Dakota farmer says dry spring conditions, heat, and late freezes are hurting wheat and rangeland, with nearby rains missing his area; USDA data show severe drought and pasture/rangeland rated poor to very poor. Dairy Update: USDA reports U.S. milk production stayed above last year for the 14th straight month, with April output up 2.7% and the dairy herd at its largest since mid-1993. Water Quality Funding: Iowa Gov. Kim Reynolds signed a package including a “Farm to Faucet” plan investing $319M over 12 years to improve water quality, with nitrate-removal upgrades and low-rate infrastructure loans. Trade & Corn Competition: Purdue researchers compare U.S. and Brazil corn costs and returns (2020–2024), highlighting how Brazil’s second-crop system can change cost structure and competitiveness. Food Safety: A salmonella recall expanded again, adding more products sold at major retailers including Costco and Walmart. Disaster Relief for Small Ag Businesses: SBA announced low-interest disaster loans for South Carolina small businesses and private nonprofits hit by drought, with eligibility limits for farm producers. Local Farm Resilience: Buncombe County (NC) is set to accept a USDA grant for streambank restoration after Hurricane Helene, including work at sites affecting farms and communities.

SNAP Changes: New SNAP work requirements start today, tightening eligibility for many able-bodied adults and some households with older dependents, while critics warn the shift and broader cuts could push more people toward food insecurity. Wheat Supply Shock: USDA data points to the weakest U.S. wheat harvest in decades, with Hard Red Winter output forecast at its lowest since 1957, raising the odds of higher flour, bread, and pasta costs later this year. Cover Crops Boost: Farmers for Soil Health reopens enrollment with higher per-acre payments and simpler one-year contracts, aiming to expand cover crop adoption across key corn/soy/wheat regions. Windbreak Debate: Plains farmers face blowing-dirt and high-wind conditions as fields open up; officials say tree windbreaks still matter, even as claims about their removal spark controversy. Food Safety: USDA/FSIS announced a recall of frozen pork-and-crab soup dumplings in New Jersey due to an undeclared peanut allergen. Local Agriculture & Water: A Kona coffee and macadamia grower story shows how earthquake damage to catchment tanks is forcing farmers to scramble for water.

Food Safety Watch: A recall is expanding after Salmonella-linked powdered milk was used in seasoning blends, pulling Motor City Pizza Co. 5 Cheese Bread sold at Costco, Target, Walmart and more. Livestock Threat: New World screwworms are moving closer to the U.S. after outbreaks in Mexico/Central America, with beef prices already at record highs and import bans tightening supply. USDA & Cotton: USDA’s Great American Cotton Plan rolls out to shift demand toward U.S.-grown cotton and support growers and rural communities. Fertilizer Pressure: Farmers are pushing back as fertilizer prices stay high, with reports of FTC scrutiny into possible anti-competitive practices in the fertilizer industry. Drought & Wheat: Kansas producers face worsening drought impacts on wheat, with higher abandonment risk and renewed calls for crop insurance. Climate Risk: UN forecasts say the planet is likely to repeatedly exceed the Paris warming threshold through 2030, raising odds of heat, drought, flooding and wildfire that can hit agriculture.

Beef Prices: USDA-linked reporting says drought-driven herd shrink and strong demand are pushing retail beef to record levels, with April prices hitting $9.64/lb and consumers likely facing higher costs ahead. USDA Conservation Data: USDA’s NASS will start reaching out to farmers and landowners in June for the CEAP survey to map conservation practices and improve soil, water, and habitat programs. Cotton Demand Push: USDA launched the Great American Cotton Plan, including “Plant Not Plastic,” to steer consumers and textile makers toward U.S.-grown cotton instead of petroleum-based synthetics. Food Access & SNAP: Massachusetts expands free summer meals with new state grants, while California SNAP eligibility changes roll out, tightening work requirements and exemptions. Input Costs Abroad: Iran-war fertilizer shocks are driving farmers in Senegal and elsewhere to shift toward compost and other organic options. Agriculture at the Border: CBP found and quarantined a rare leafy-greens leafhopper at Nogales, underscoring ongoing pest-prevention work. Local Markets: Kentucky Farm Bureau certified seven Daviess County farm markets for quality and locally grown products.

USDA Cotton Push: USDA Secretary Brooke Rollins unveiled the “Great American Cotton Plan,” aiming to lift the cotton farm economy and support rural communities, with Texas citing cotton’s major local economic footprint. Fertilizer Logistics: DOT and USDA issued a temporary hours-of-service waiver to speed fertilizer deliveries in 35 states through Aug. 26, easing trucking limits during peak planting. Input Cost Pressure: Farmers are grappling with fertilizer and fuel strain tied to the Iran war and broader supply disruptions, while drought is tightening forage options and boosting demand for tools that help match feed buyers and sellers. Specialty Crop Support: USDA opened $1.6B in aid and set enrollment/payment rates for specialty crop farmers, targeting growers’ near-term cash flow. Farm Labor Reality: A study finds tougher immigration enforcement reduced employment for U.S.-born workers too, including in agriculture, as labor markets contracted. Wildlife & Livestock: Oregon lawmakers and agencies are convening on wolf management impacts for ranchers, while new research highlights how bats’ winter fungus may be fought using cave microbes. Weather Risk: Hot, dry summer forecasts are raising drought and wildfire concerns in parts of the mid-Atlantic.

Specialty Crop Relief: USDA opened enrollment and set payment rates for the Assistance for Specialty Crop Farmers Program, with $1.6B headed to eligible growers; online apps start June 1, in-person June 8, and the deadline is Aug. 7. Cover Crops Incentives: Farmers for Soil Health reopened enrollment for 2026 with higher per-acre payments and a simpler one-year contract to reduce risk for cover-crop adoption (through Aug. 31). Farm-to-School Markets: Utah’s Department of Agriculture and Food won a $350,000 USDA Farm to School grant to expand Utah fruit in school meals and add classroom ag education. Disaster Response: Maryland Gov. Wes Moore ordered state agencies to coordinate help after an April freeze devastated fruit and grape yields, including waiving certain winery sourcing rules and pushing federal disaster funds. Trade & Input Costs: The American Soybean Association said it needs the Trump administration’s announced aid but wants trade talks with China to keep moving; meanwhile, grocery affordability claims are being challenged as overall food prices keep rising. Biosecurity at the Border: CBP quarantined a rare leafhopper pest in a leafy-greens shipment at Nogales, Arizona, underscoring ongoing risks to U.S. crops. Water Rule Clarity: The U.S. Supreme Court approved a Rio Grande compact settlement ending long-running groundwater litigation, setting a long-term framework affecting farms and communities.

Cotton Push: USDA unveiled the “Great American Cotton Plan,” aiming to restore U.S. cotton demand and textile manufacturing, expand trade, and protect growers via higher support for textile mills and higher seed-cotton reference prices under risk coverage programs. Fertilizer Pressure: Farmers urged the FTC to act as fertilizer prices near-doubled since February; the FTC is launching a formal fertilizer-industry investigation amid claims of weak competition. Affordability Squeeze (Tomatoes): Tomato prices jumped about 40% year over year, with analysts pointing to tariffs and trade shifts plus war-driven shipping and fuel costs. Trade Talks: The U.S. and Mexico wrapped the first round of USMCA revisions focused on autos, steel/aluminum, and a “level playing field,” with agriculture slated for the next round. Disaster Relief: New York is seeking USDA disaster designation for Hudson Valley farms hit by the April freeze, while Virginia and Maryland also push for expedited aid. Biofuels Costs: Renewable fuel credits hit record levels as EPA mandates and diesel-biodiesel price gaps lift RIN values. Local Ag Impacts: Virginia drought warnings persist despite rain, and North Dakota mourned former Sen. Gary Nelson, a longtime farm leader.

US Farm Policy & Food Costs: Missouri plans to restrict SNAP and SuN Bucks purchases starting Oct. 1, banning candy, sugary drinks, and prepared desserts; grocers want a clear item list and an exact start date. War-Driven Input Pressure: With Iran-related fuel and shipping disruptions, Missouri farmers may feel higher diesel costs even if most fertilizer was pre-bought; experts warn broader food-security risks. USDA Safety Net Update: USDA’s Farm Service Agency is offering a rare chance (June 1–Aug. 31) to review and potentially increase base acres for Agriculture Risk Coverage and Price Loss Coverage, with up to 30 million acres nationwide. Weather & Harvest Stress: Oklahoma wheat harvest is starting early after a warm winter and poor crop conditions, with drought and high costs squeezing yields. Trade & Market Signals: Grain futures were mixed overnight; bean oil hit a contract high as traders watch the delayed USDA export sales report. Livestock Outlook: The U.S. cattle herd is at a 75-year low, a squeeze that could keep beef prices elevated. Aquaculture Relief: USDA issued a disaster designation for Long Island oyster growers after winter losses, unlocking disaster assistance and low-interest emergency loans. Biosecurity at the Border: CBP launched a campaign warning Texas travelers about New World screwworm, with USDA ramping up sterile fly production.

FTC Fertilizer Probe: The Federal Trade Commission has launched a formal investigation into possible anti-competitive practices in the U.S. fertilizer industry after farmers reported fertilizer price spikes and limited transparency, with the probe also tied to higher costs during the Iran-linked disruption. USDA Cotton Push: USDA unveiled the Great American Cotton Plan to rebuild cotton demand and protect growers, citing years of negative returns, rising input costs, and synthetic-fiber competition; the plan centers on boosting domestic consumption and demand, improving trade, and managing risk. Biofuel Demand Rules: Biofuel and farm groups urged Treasury to finalize fast guidance for the Section 45Z Clean Fuel Production Credit so producers and farmers can monetize low-carbon practices and support corn and soybean demand. Ethanol Update: U.S. ethanol stocks rose to multi-week highs as production stayed near steady, with Iowa margins still positive and exports down week over week. Nutrien-Israel Ag Tech Grant: Nutrien’s Loveland facility received BIRD Foundation support for an AI-driven targeted spraying system with an Israeli partner, aiming to validate retail-ready tech. Rural Health Funding: Rep. Jill Tokuda introduced a bill for interest-free USDA-backed loans (up to 10 years) to help rural hospitals build, repair, and modernize. Freeze Damage in NJ: New Jersey farmers are assessing major crop losses after a cold snap, with Gov. Mikie Sherrill declaring a statewide emergency to speed USDA disaster relief.