Groups Highlight USMCA Benefits at Commodity Classic – Daybreak, Feb. 27

Key Takeaways

The U.S.-Mexico-Canada Agreement (USMCA) is crucial for integrating supply chains and boosting North American exports.
Concerns regarding the reopening of the U.S. border to Mexican cattle persist amid ongoing pest outbreaks.
Trade uncertainties and EPA’s upcoming biofuel regulations are identified as significant factors affecting the agricultural sector’s future.

USMCA’s Role in North American Agriculture

As discussions on the U.S.-Mexico-Canada Agreement (USMCA) progress, the Commodity Classic has become a platform for various agricultural groups to highlight the deal’s advantages for U.S. farmers and overall regional competitiveness. The Agricultural Coalition for USMCA organized a breakfast event where international trade lawyer Mateo Diego-Fernández Andrade emphasized that maintaining the trilateral agreement supports integrated supply chains, enhancing North American exports. He illustrated how U.S. grain is used to feed Mexican calves, which are then brought back to the U.S. for fattening before being exported as beef. According to him, preserving this arrangement is vital for ensuring that North America continues to be a significant economic power.

Meanwhile, Farmers for Free Trade hosted a separate gathering at the Kimpton Santo Hotel, commemorating the signing of the North American Free Trade Agreement, the precursor to USMCA. This event kicked off a series of roundtable discussions leading to the agreement’s review scheduled for July, with additional events planned in agricultural states like Iowa and Wisconsin.

Cattle Border Closure Update

U.S. Agriculture Secretary Brooke Rollins reiterated at Commodity Classic that the border to Mexican cattle will not reopen “anytime soon” due to concerns over the New World screwworm outbreak, which is currently affecting over 600 cases in Mexico. She indicated that the USDA would first consider reopening a port of entry in Arizona, followed by New Mexico, as the situation develops. This reinforces American Farm Bureau Federation President Zippy Duvall’s recent appeal to maintain the border closure, highlighting the proximity of active cases to the U.S. border.

Concerns over Biofuel Regulations

Seth Meyer, former chief economist at the USDA, voiced concerns about the Environmental Protection Agency’s (EPA) proposed biofuel-blending rules for 2026-27 during a presentation at Commodity Classic. Meyer characterized the EPA’s previous targets for biomass-based diesel as “peak aggressiveness” and expressed skepticism regarding subsequent proposed reductions.

Ag economists also flagged uncertainties surrounding the upcoming midterm elections and how they could affect agricultural policies. Trade remains a significant wild card for farmers, with many questioning whether recent trade agreements will result in tangible benefits for key markets like corn and ethanol.

New Base Acres Implementation

Bill Beam, administrator of USDA’s Farm Service Agency, announced that new base acres will be implemented this summer. This move is expected to aid producers from regions that traditionally do not grow commodity crops. As part of the One Big Beautiful Bill Act, the USDA is allowed to add up to 30 million new base acres, which will significantly impact some farmers.

Legal Actions Affecting the Columbia-Snake River System

A federal judge has ordered the Army Corps of Engineers to increase spill levels at dams along the Snake River in Eastern Washington to support declining salmon populations. This ruling continues a longstanding conflict among tribes, environmentalists, and agricultural groups reliant on the river’s navigation benefits. Critics, like Michelle Hennings from the Washington Association of Wheat Growers, contend that this decision prioritizes environmental concerns at the expense of agricultural viability and shipping logistics.

Future of Agricultural Legislation

Senate Agriculture Chairman John Boozman noted that the timing of discussions on the new farm bill will hinge on the actions of the House Agriculture Committee, with an intent to advance agricultural policy in the near future.

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