Friday December 20 Ag News

 Rural Mainstreet Economy Plummets as Trump Bump Fades

After advancing above growth neutral last month for the first time since July 2023, the overall Rural Mainstreet Index (RMI) sank below the 50.0 reading in December, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading for December plummeted to 39.6 from November’s much-stronger 50.2. It was 11th time this year that the overall reading has fallen below growth neutral. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“In retrospect, and based on bank CEO comments, there appears to have been a significant November upturn resulting from the surprising Trump election results. That positive bump disappeared in December as continuing weak grain prices and farm income losses weighed on a significant proportion of farmers in the region,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Approximately one in four bankers reported that their local economy was either currently in a recession or would enter a downturn in 2025. The remaining three of four bankers expect slow growth but no recession for 2025.

Farming and ranch land prices: For the 7th time in the past eight months, farmland prices sank. The region’s farmland index fell to 41.3 from November’s weak 44.4. “Elevated interest rates and higher input costs, along with below breakeven grain prices for some farmers in the region, have significantly reduced farmer demand for ag land,” said Goss.

According to trade data from the International Trade Association (ITA), regional exports of agriculture goods and livestock for 2024 year-to-date rose to $9.98 billion from $9.71 billion from the same period in 2023 for a 2.8% gain.

Farm equipment sales: The farm equipment sales index slumped to 14.3, its lowest level since October 2016 and down from 14.6 in November. “This is the 17th straight month that the index has fallen below growth neutral. High borrowing costs, tighter credit conditions and weak farm commodity prices are having a negative impact on the purchases of farm equipment,” said Goss.

Below are the state reports:
Nebraska: The Nebraska Rural Mainstreet Index for December slumped to 36.5 from November’s 44.4. The state’s farmland price index for December sank to 40.0 from 42.9 in November. Nebraska’s new hiring index declined to 43.7 from 47.9. According to trade data from the ITA, Nebraska exports of agriculture goods and livestock for 2024 year-to-date expanded to $730.5 million from $620.3 million from the same period in 2023 for a 17.8% gain.

Iowa: December’s RMI for the state slumped to 41.7 from 49.6 in November. Iowa’s farmland price index for December rose to 41.5 from 41.1 in November. Iowa’s new hiring index for December fell to 45.5 from 49.3 in November. According to trade data from the ITA, Iowa exports of agriculture goods and livestock for 2024 year-to-date sank to $1.27 billion from $1.28 billion from the same period in 2023 for a reduction of 1.3%.

The survey represents an early snapshot of the economy of rural agriculturally- and energy-dependent portions of the nation. The Rural Mainstreet Index is a unique index that covers 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy. Goss and the late Bill McQuillan, former Chairman of the Independent Community Banks of America, created the monthly economic survey and launched it in January 2006.



Nebraska Cattlemen Selects Senator Curt Friesen for the 2024 Industry Service Award

The Nebraska Cattlemen Nominations Committee announced Senator Curt Friesen as the winner of the 2024 Industry Service Award during the Nebraska Cattlemen Annual Awards Banquet.

The Nebraska Cattlemen Industry Service Award recognizes the contribution of individuals who work outside the cattle industry and go above and beyond to support agriculture.

Senator Curt Friesen stated, “I was surprised, honored, and humbled to be recognized for this award. In my eight years of service in the Legislature I fought hard for rural Nebraska and the Nebraska Cattlemen were always there to stand with me!”

Nebraska Cattlemen Executive Vice President Laura Field stated, “Curt Friesen is a champion for Nebraska cattle producers. During his eight years in the legislature, Senator Friesen fought tirelessly for property tax reform and relief and all matters impacting rural Nebraska. He has and will continue to be a friend to Nebraska Cattlemen, and he is most deserving of the Industry Service Award.”

Curt Friesen, a fifth-generation farmer from Hamilton County, represented District 34 in the Nebraska Legislature from 2014 to 2022, where he served on the Revenue Committee, among other assignments. He is a former president of the Hamilton County Corn Growers, vice chair of the Nebraska Corn Board, vice chair of the National Corn Growers Public policy action team, board chairman of the Upper Big Blue Natural Resources District and member of the Hamilton County Farm Bureau.



Dave Burkholder Receives the Nebraska Cattlemen Hall of Fame Award

During the Nebraska Cattlemen Annual Awards Banquet, Dave Burkholder received the 2024 Nebraska Cattlemen Hall of Fame award for his lifetime of service to Nebraska’s beef cattle industry.

The Hall of Fame Award is the highest honor Nebraska Cattlemen can give one of its members. The Nominations Committee selects members based on their contribution to the beef industry, contribution to the Nebraska Cattlemen organization, community and civic contributions, and their cattle business accomplishments.

Executive Vice President Laura Field said, “Dave Burkholder is a well-respected cattle feeder who is known for his willingness to take risks and push the cattle industry forward. He is a trustworthy leader to those around him and his impact on the Nebraska’s cattle community is undeniable.”

Dave Burkholder attended Stanford University where he earned a Masters of Business Administration degree. Dave owned and managed Will Feed in Dawson County for many years. He is known for helping other cattle feeders navigate the Nebraska Department of Environment and Energy permitting process. Dave represented the cattle industry many times at Nebraska legislative hearings where he gave testimony about tax issues affecting cattle producers. He served as the chairman of the Nebraska Cattlemen Taxation Committee from 1994 to 1996 and served as president of Nebraska Cattlemen in 2002.

Mr. Burkholder also served as the treasurer of the Dawson County Cattlemen for many years and was inducted into the Dawson County Cattlemen Hall of Fame in 2001. He served several times as the president of the Nebraska Alfalfa Dehydrators and as president of the American Alfalfa Dehydrators twice. Dave was also in the first class of Nebraska LEAD fellows in 1981.



November Milk Production in the United States down 1.0 Percent

Milk production in the United States during November totaled 17.9 billion pounds, down 1.0 percent from November 2023. Production per cow in the United States averaged 1,909 pounds for November, 23 pounds below November 2023. The number of milk cows on farms in the United States was 9.37 million head, 20,000 head more than November 2023, but 5,000 head less than October 2024.

IOWA : Milk production in Iowa during November 2024 totaled 492 million pounds, up 3 percent from the previous November according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during November, at 245,000 head, was 2,000 above last month and up 6,000 from November 2023. Monthly production per cow averaged 2,010 pounds, up 20 pounds from last November.



Monthly Dairy Webinar Jan. 22 to Focus on Climate and Weather Predictions for the 2025 Growing Season

The Iowa State University Extension and Outreach Dairy Team monthly webinar series continues on Wednesday, Jan. 22 from 12 noon to 1 p.m. This program will be presented by Dennis Todey and focus on the climate and weather predictions for the 2022 growing season.

Dennis Todey, director of the USDA Climate Hub in Ames will lead the presentation. Todey is a native Iowan with his B.S. and Ph.D. from Iowa State University in Meteorology and Agricultural Meteorology. He has spent two stints in South Dakota, first completing his M.S. at the South Dakota School of Mines and Technology and most recently as Associate Professor and State Climatologist for South Dakota at South Dakota State University. He is well known regionally as a speaker and media source on various climate issues and is the former president of the American Association of State Climatologists.

Producers, dairy consultants and industry reps are encouraged to attend the free webinar live from noon to 1:00 p.m. on January 22 by registering at least one hour before the webinar at:
https://go.iastate.edu/2025SEASON

For more information contact the ISU Extension and Outreach Dairy Field Specialist in your area: in Northwest Iowa, Fred M. Hall, 712-737-4230 or fredhall@iastate.edu; in Northeast Iowa, Jennifer Bentley, 563-382-2949 or jbentley@iastate.edu; in East Central Iowa, Larry Tranel, 563-583-6496 or tranel@iastate.edu.



Commercial Red Meat Production Down 3 Percent from Last Year

Commercial red meat production for the United States totaled 4.56 billion pounds in November, down 3 percent from the 4.68 billion pounds produced in November 2023.

Beef production, at 2.22 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.57 million head, down 6 percent from November 2023. The average live weight was up 38 pounds from the previous year, at 1,425 pounds.

Veal production totaled 3.1 million pounds, 28 percent below November a year ago. Calf slaughter totaled 15,500 head, down 36 percent from November 2023. The average live weight was up 37 pounds from last year, at 338 pounds.

Pork production totaled 2.33 billion pounds, down 2 percent from the previous year. Hog slaughter totaled 10.8 million head, down 3 percent from November 2023. The average live weight was unchanged from the previous year, at 289 pounds.

Lamb and mutton production, at 10.4 million pounds, was down 7 percent from November 2023. Sheep slaughter totaled 173,600 head, 9 percent below last year. The average live weight was 118 pounds, up 2 pounds from November a year ago.

By State        (million pounds - % Nov '23)
Nebraska .......:          681.7            102       
Iowa ..............:          768.3             96       
Kansas ...........:          470.0             98       

January to November 2024 commercial red meat production was 50.4 billion pounds, up 1 percent from 2023. Accumulated beef production was up slightly from last year, veal was down 16 percent, pork was up 2 percent from last year, and lamb and mutton production was up 2 percent.



Bipartisan Legislation Introduced by Smith to Safeguard Food Supply Chain Passes House

This week, Congressmen Adrian Smith (R-NE), Sanford D. Bishop, Jr. (D-GA), Drew Ferguson (R-GA), and Dan Kildee (D-MI), led U.S. House approval of S.759, the Beagle Brigade Act by an overwhelmingly bipartisan vote of 381-20. The bill passed the U.S. Senate by unanimous consent in November 2024. Having passed both chambers, the bill now heads to the President’s desk to be signed into law.

In May 2023, Reps. Smith, Bishop, Ferguson, and Kildee introduced the House companion bill, H.R. 1480, which was approved by the U.S. House Agriculture Committee by a unanimous vote. S. 759 was introduced by Sens. Joni Ernst (R-IA) and Raphael Warnock (D-GA).

The bill will permanently authorize the National Detector Dog Training Center, located in Newnan, Georgia. The Center extensively trains detector dogs—mostly beagles—and their U.S. Customs and Border Protection handlers to sniff out prohibited agricultural items that could carry foreign plant or animal pests and diseases into our country. Dogs are selected from animal shelters, rescue groups, and private owners. Those that retire from the program or do not complete training are offered for adoption.

“Protecting American consumers and our agriculture industry from foreign threats to food safety before they enter our food supply is a critical task,” said Rep. Smith. “Our hardworking farmers and ranchers are tirelessly vigilant to safeguard their stock from contaminants, and the passage of this bill will augment Customs and Border Protection efforts to effectively identify and stop foreign pests and diseases before they can enter our food supply chain. I thank Reps. Bishop, Ferguson, and Kildee for their collaboration on this bipartisan bill, and I encourage President Biden to sign it into law.”

“Iowans know firsthand how important prevention and preparedness efforts are in combatting diseases like avian influenza, foot-and-mouth disease, and African swine fever. The Beagle Brigade is our first line of defense against foreign animal diseases that have the potential to devastate our farmers, producers, and food supply chain,” said Sen. Ernst. “The House and Senate have done our jobs to protect our agricultural community, and the president must sign this bipartisan legislation into law immediately.”



Growth Energy Statement on the Exclusion of Year-Round E15 from the Year-End Funding Bill

Growth Energy, the nation’s largest biofuel trade association, issued the following statement after it was revealed that the latest year-end funding package being considered by Congress no longer includes language that would provide for the year-round sale of E15, a fuel made with 15% homegrown bioethanol that costs less than regular fuel and can be used in 96% of cars on the road today:

"Leaving E15 on the cutting room floor is like putting coal in the stocking of America's drivers, farmers, and the rural communities that depend on American bioethanol. Congressional supporters of E15 and American biofuels should pressure their leadership to return the language allowing for the year-round sale of E15 to this legislation,” said Growth Energy CEO Emily Skor. “We cannot be any clearer—E15 saves consumers money, lowers emissions, and supports economic growth and job creation across the Heartland. This bill should add year-round E15 to the other important agriculture assistance already in this bill. We cannot afford to shortchange farmers at a time when they're facing major financial stress and undermine President Trump's stated goal of establishing American energy dominance. There still is time to do the right thing and reverse course—we urge Congress to act now to preserve the original bill's E15 provision and finally make year-round E15 the law of the land."



America’s grain and feed industry praises WRDA passage

The U.S. Senate yesterday approved the biennial Thomas R. Carper Water Resources Development Act of 2024 (WRDA) by a vote of 97-1.

WRDA funds crucial water-related infrastructure projects nationwide under the supervision of the U.S. Army Corps of Engineers. It was approved last week by the House of Representatives in a 399-18 vote.

The bill, which now heads to the President’s desk for signature before becoming law, includes smart adjustments to the cost-share provisions for construction and major rehabilitation of inland waterway infrastructure – a priority for the National Grain and Feed Association (NGFA).

“We are grateful that Congress has once again delivered a bi-partisan, on-time WRDA and recognized the importance of the inland waterways system to the American agricultural supply chain,” said NGFA President and CEO Mike Seyfert. “Barges transport about half of all grains to export grain elevators, and modern ports and efficient inland locks and dams are essential to maintaining America’s comparative infrastructure advantage. We are also pleased the legislation does not threaten or call into question the importance of the Columbia River System and Lower Snake River Dams for U.S. agricultural exports.”

Seyfert specifically thanked Chairman Tom Carper (D-Del.) and Ranking Member Shelley Moore Capito (R-W.Va.) from the Senate Committee on Environment and Public Works, along with Chairman Sam Graves (R-Mo.) and Ranking Member Rick Larsen (D-Wash.) from the House Committee on Transportation and Infrastructure, for their leadership.

“Their bipartisan commitment to shepherding this important legislation across the finish line before Congress adjourned is greatly appreciated by all of us in the grain and feed business,” he explained. “We call on the next Congress and the incoming administration to continue building on these efforts to modernize America’s waterways.”

One item that NGFA hopes to see in future WRDA bills is additional support for key projects designated in the Infrastructure Investment and Jobs Act enacted in 2021.



Senate Passes WRDA; Updated Cost-share a Win for ASA
ASA Newsletter

This week the U.S. Senate passed the Thomas R. Carper Water Resources Development Act of 2024 to improve the nation’s ports and harbors, inland waterway navigation, flood and storm protection, and other aspects of the nation’s water resources infrastructure. The final Senate vote was 97-1.

Importantly, the final WRDA 2024 bill included a provision to permanently adjust the inland waterways cost-share allocation for construction and major rehabilitation projects to 75% general revenue and 25% Inland Waterways Trust Fund (IWTF) from the current 65%/25% ratio—a top priority for U.S. soybean farmers.

Background
Biennial WRDA legislation is critical to maintaining and updating a strong domestic water infrastructure network. Since 2014, Congress has maintained a bipartisan and bicameral commitment to pass on-time WRDA legislation that considers input from waterways users.

For the past several congresses, ASA has advocated for a 75%/25% cost-share ratio for inland waterways projects, creating parity with the cost-share ratio granted to coastal deep-draft navigation projects in 2016. In 2022, Congress updated the allocation from 50%/50% to 65%/35%. Now, with the 75%/25% update included in WRDA 2024, inland waterways projects will receive increased available appropriations funding of an estimated $1.4 billion over a 10-year period. Annually, with IWTF revenues of $115 million, the new cost-share will allow for $460 million in appropriations, an increase of $131 million over the old cost-share.

Improving cost-share allocations leads to enormous long-term benefits for inland waterways construction projects. By allowing for greater annual funding, large-scale water infrastructure projects can be completed on a shorter schedule, which in turn lowers overall costs and potential cost overruns.

The measure was previously approved by the House on Dec. 10 by a vote of 399 to 18 and now goes to President Biden to be signed into law.

Ag Groups Rally to Prevent Port Shutdown
The Ag Transportation Working Group, of which ASA is a member, sent letters today to President Joe Biden and President-elect Donald Trump urging immediate intervention to prevent a work stoppage at East and Gulf Coast ports. The current labor dispute between the International Longshoremen’s Association and the United States Maritime Alliance, Ltd. threatens to disrupt operations starting January 15, 2025, when their labor agreement expires.

East and Gulf Coast ports are vital for U.S. agriculture, handling about 40% of the nation’s containerized exports, including a significant portion of soybeans. January is a peak export month for U.S. soybeans, and a work stoppage would be especially damaging. The American Farm Bureau Federation estimates that a strike or slowdown could cost U.S. agriculture up to $1.4 billion per week.

A brief strike in October 2024 caused major disruptions despite lasting only three days. Agricultural shipments were embargoed in advance to prevent backlogs, and it took weeks for container flows to return to normal. In the letter, the groups warn that a prolonged disruption in January would have even more severe impacts, as international buyers could easily turn to alternative suppliers.

ATWG is calling on the administration to help facilitate a new contract between the ILA and USMX before the expiration of the current agreement. ASA, which has been closely monitoring the situation, is working with the National Economic Council to push for a resolution that keeps U.S. ports operational and supports the agricultural supply chain.

With the January deadline fast approaching, ATWG and ASA urge all stakeholders to advocate for swift presidential intervention to prevent further disruptions to U.S. agriculture.



NFU Congratulates Klobuchar on Being Named Ranking Member of Senate Ag Committee

National Farmers Union (NFU) President Rob Larew today issued the following statement on Senator Amy Klobuchar (D-MN) being named ranking member of the Senate Agriculture Committee:

“Senator Klobuchar has consistently demonstrated a commitment to bipartisanship and championing the needs of agriculture and rural America. On behalf of National Farmers Union, I extend our congratulations to her on being elected as the ranking member of the Senate Agriculture Committee.

“Her leadership comes at a pivotal time for family farmers and ranchers, who are navigating significant economic and environmental challenges. A strong, comprehensive five-year farm bill is essential to providing stability. We are eager to partner with Senator Klobuchar to ensure a new farm bill addresses the needs of family farmers and strengthens the resilience of our rural communities.”



2024 Checkoff Highlights Drive Sales, Trust, Innovation for Dairy Industry

Dairy checkoff initiatives of 2024 successfully increased dairy access in schools, expanded market share for U.S. dairy products domestically and internationally and supported the industry’s longstanding commitment to sustainability on behalf of U.S. dairy farmers and importers.

Dairy Management Inc. (DMI) President and CEO Barbara O’Brien pointed to a collective effort of national and local teams that delivered results this year.

“The checkoff is working, and we have achieved a lot in building the next chapter of our history,” said O’Brien, who outlined “now, next and future” checkoff strategies at this year’s joint annual meeting. “This success was made possible by the dedication and hard work of everyone across the checkoff federation. This was a strong year of results as we continue to work with and through others to catalyze action against our trust- and sales-building priorities.”

Checkoff-led highlights from 2024 include:
Increasing Dairy Access in Schools – A partnership provided hot chocolate milk to students during a pilot with Chartwells K12, which serves more than 2 million meals daily at 700 school districts. National Dairy Council (NDC) and Chartwells launched the Hot Chocolate Milk program in 58 schools, which features hot chocolate milk – with toppings such as cinnamon and peppermint – served during breakfast and lunch.

Another school pilot offered lactose-free chocolate milk and increased consumption and reached students who weren’t drinking milk because of real or perceived lactose intolerance. NDC and American Dairy Association Mideast worked with Cincinnati Public Schools (CPS) to offer the country’s first single-serve lactose-free chocolate milk program. When compared to the rest of the district, the pilot schools experienced a 16-percent increase in milk consumption. The pilot was so successful that CPS is offering lactose-free chocolate milk in all schools.

Partnerships Growing Sales – The checkoff’s longstanding strategy of working with and through powerful partners continues to deliver results. For example, the checkoff supported Domino’s with its launch of cheese-centric items, including the New York Style Pizza and five-cheese mac and cheese.

This strategy of working with pizza partners also continues to find success internationally, a key tactic to reach the 95% of the world’s population that lives outside of the United States. DMI’s partnership with Pizza Hut Japan led to the chain announcing a permanent 30% increase of cheese use on all pizzas.

Other partnership innovations included working with General Mills to create YoBark, a yogurt-based snack designed to give families a tasty option and expand yogurt’s presence in the snacking category.

Sharing The Science of Dairy – One emerging research area is dairy’s impact on the first 1,000 days of life – encompassing pregnancy through a child’s second birthday. This is a critical period for brain development, which is impacted by nutrition and dairy can significantly support cognitive development, thanks to nutrients including iodine and choline. Checkoff organizations nationally and locally teamed with MilkPEP to elevate awareness and understanding of dairy’s contributions with expecting mothers and parents seeking nutrition guidance.

NDC also showed its ability to convene thought leaders when it hosted more than 100 national and international health and wellness experts for a two-day scientific conference addressing the dairy matrix, the concept of exploring the unique nutrient, non-nutrient and molecular compositions of dairy foods. Among the meeting attendees were representatives and speakers from major health professional organizations leading universities and organizations.

Supporting Dairy’s Sustainability Legacy – The checkoff is focused on deepening its knowledge and attracting the investment in research on practices and technologies that work from a mitigation standpoint, and tools and resources to support adoption. DMI is tracking more than $29 million in additional investment from partners for pilot projects and research that empower sustainability action. One example is the Greener Cattle Initiative, a collaboration which announced a second round $5 million funding for enteric methane mitigation research.

The checkoff launched the Dairy Conservation Navigator, a resource hub designed to provide farm advisors, stakeholders and conservation professionals with science-based information on sustainable practices and technologies. Checkoff scientists and others developed a list of 80-plus practices that have a positive environmental benefit.

Checkoff Sparking Innovation – The checkoff showcased dairy innovation and its nutrition package to 70,000 people attending Natural Products Expo West, the leading trade show in the natural, organic and healthy products industry. DMI unveiled its www.InnovateWithDairy.com tool, which serves as a one-stop shop for anyone seeking information about dairy innovation.

DMI also kept its focus on future innovators with its New Product Competition. A University of Minnesota team took first with a creamy Norwegian-style, whey-based cheese spread.

More checkoff results, including financial reports, can be found at www.dairycheckoff.com.



Mexico Has Become America’s Most Reliable Customer for U.S. Dairy Exports

U.S. dairy exports are approaching record levels as consumer demand for dairy products in Mexico continues to outpace the country’s production. Mexico is the leading export market for U.S. dairy products, accounting for more than one-fourth of international sales. All told, Mexico purchases 4.5% of U.S. milk production via dairy products and ingredients. While milk production in Mexico has grown annually since 2011, it hasn’t been enough to keep pace with surging demand. Dairy product consumption in Mexico has increased by 50 pounds per capita since 2011.

According to a new report from CoBank’s Knowledge Exchange, the upside potential for increasing U.S. dairy sales to Mexico remains strong and broader export market opportunities are positioning the U.S. dairy industry for long-term growth.

“Dairy product sales to Mexico have the potential for continued growth as more consumers enter the middle class and seek higher quality proteins and fats,” said Corey Geiger, lead dairy economist with CoBank. “Mexico faces an annual dairy product deficit ranging between 25-30%, and the U.S. supplies over 80% of that shortfall. Beyond Mexico, the U.S. has strong growth prospects in the wider dairy export market that will be increasingly important as new dairy processing capacity comes online.”

The European Union and New Zealand currently hold the top two spots for global dairy exports, but milk production in those regions has stalled. Greenhouse gas reduction policies have constrained production in the EU, and New Zealand has likely reached its peak cow population due to land constraints.

Growth prospects for U.S. dairy both domestically and abroad triggered an $8 billion investment in new processing plants that will be ramping up production over the next two years. By the middle of 2025, nearly 20 million pounds of new milk is expected to be flowing through those plants. That means more cheese, whey and other dairy proteins will be seeking a home, and exports are expected to be a major destination for those products.

A generation ago, almost all the milk and dairy foods produced in the U.S. were sold domestically. Today, the milk from one in six tanker trucks leaving American farms is processed into dairy products and ingredients sold to other countries.

Free trade agreements have been instrumental to export growth for dairy and other agricultural products, Geiger noted. Prior to the implementation of the North American Free Trade Agreement in 1994, the U.S. exported just $211 million in dairy products to Mexico. By 2011, Mexico became America’s first $1 billion dairy export market. Dairy exports to Mexico surpassed $2 billion in 2022 under the United States-Mexico-Canada Agreement.

U.S. dairy exports to Mexico totaled 1.38 billion pounds in 2023, and the 10-year growth rate for U.S. dairy sales to Mexico is 42%, according to USDA data. Geiger said the dairy industry is hoping that trajectory continues.

“As the industry prepares for future demand, producers and processors hope Mexico will one day purchase a significant portion of America’s milk production in the form of dairy products and ingredients,” he said.



U.S. Grains Council Receives Second Round Of Regional Agriculture Promotion Program Funding From U.S. Department of Agriculture

The U.S. Grains Council (USGC) today received notice of a second round of funding from the U.S. Department of Agriculture (USDA) under its Regional Agriculture Promotion Program (RAPP). The award will disperse $16 million to the Council for use in developing markets that will be crucial to the future of U.S. agriculture exports.

“USDA’s decision to distribute additional RAPP funding will allow our organization to continue programming it began with the initial round of funding and the new allocation enables us to expand into additional markets that were not earmarked in the first iteration,” said Verity Ulibarri, USGC chairwoman. “We thank the USDA for having confidence in our programming and look forward to using the funding to continue to achieve measurable results for U.S. producers, buyers and sellers alike.”

RAPP was launched after a request from the U.S. Senate Committee on Agriculture, Nutrition, and Forestry to bolster, diversify and expand market opportunities for U.S. agriculture products. The first round of the Council’s funding - $17 million – came in 2024.

In addition to programming focused in Africa, Latin America, the Middle East, South and Southeast Asia, the second round of funding can also be used in the European Union for continued export market development for both U.S. ethanol and feed grains.

“The second tranche of RAPP funding will allow the Council to diversify and expand market opportunities for our commodities in both nascent markets and with our traditional top customers,” said Ryan LeGrand, USGC president and CEO. “It’s a very big world, and we are excited to work the additional funding into our export market promotion efforts already underway, but also into new ones for which we’ve been planning for years.”