Monday July 07 Ag News - Beef & Pork Exports Drop - Ethanol Exports Ramp Up - OBBB signed into law - and more!

Impasse with China Weighs Heavily on May Exports of U.S. Red Meat

Exports of U.S. pork and beef trended lower in May, due primarily to steep declines in shipments to China, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). May exports of U.S. lamb cuts increased year-over-year, driven mainly by growing demand in Mexico.

In April and the first half of May, China’s total tariff rate on U.S. pork peaked at 172%, while the rate for U.S. beef was 147%. Even following a May 14 joint announcement temporarily easing tariffs for 90 days, China’s rates still stand at 57% for U.S. pork and 32% for U.S. beef. In addition, most U.S. beef production is ineligible due to China’s failure – since February – to renew expiring beef plant and cold storage facility registrations.

“The situation with China obviously had a severe impact on May exports, underscoring the importance of diversification and further development of alternative markets,” said USMEF President and CEO Dan Halstrom. “The need for progress in the U.S.-China trade negotiations is extremely urgent because tariffs could soar again on Aug. 12. This deadline is already impacting exporters’ decisions about whether to continue producing for the Chinese market. On the bright side, amid all this uncertainty, demand for U.S. red meat remains robust in many key regions.”

Pork exports lower overall, but Latin American markets shined in May
May pork exports totaled 224,162 metric tons (mt), down 11% from a year ago, while value fell 10% to $646.5 million. Although these were the lowest monthly totals since September 2023, shipments increased year-over-year to Mexico, Central America and Colombia, and were record-large to Cuba. Pork exports to all of these markets are on a record pace in 2025.

Pork exports to China, which are mainly variety meat, dropped to just 6,720 mt in May, down 82% from a year ago, while value fell 77% to $20.7 million.

Through the first five months of the year, pork exports were down 6% in volume (1.22 million mt) and 5% in value ($3.43 billion) compared to the record pace of 2024.

May beef exports to Korea largest in more than two years
Beef exports totaled 97,266 mt in May, down 12% and the lowest in nearly five years. Export value was $798.7 million, down 11.5% and the lowest in 18 months. But exports to leading market South Korea were outstanding, posting the largest monthly volume in more than two years and the highest value in nearly three years. May beef exports also trended higher year-over-year to Central and South America, the Dominican Republic, the United Arab Emirates and Africa.

May beef exports to China plunged to just under 1,400 mt, down 91% from a year ago. Export value fell 90% to less than $15 million.

January-May beef exports were down 5% from last year’s pace at 508,293 mt, while value declined 3% to $4.15 billion.

May lamb exports largest of 2025
May exports of U.S. lamb muscle cuts reached a 2025 high of 363 mt, essentially doubling (up 99%) from a year ago, while value increased 71% to $1.8 million. The increase was driven mainly by growth in Mexico, where exports were the largest since 2019 at nearly 200 mt. May shipments also rebounded to Canada.

January-May lamb exports were 44% above last year at 1,367 mt, while value climbed 25% to $7.4 million. Exports to Mexico surged more than 80% in both volume (673 mt) and value ($2.34 million), driven by growing demand for alternative cuts such as shoulder and breast meat. Exports to the Caribbean, which remains the leading value destination for U.S. lamb, also increased year-over-year. 



U.S. Exports of Ethanol and Distillers Grains Strengthened in May
Renewable Fuels Association

U.S. ethanol exports expanded 7% to 184.7 million gallons (mg) in May, setting a record for the month. The gains were concentrated among a few key markets. Shipments to Canada, the longtime top destination, increased 12% to 61.3 mg, accounting for two-thirds of denatured ethanol volumes. Exports to the United Kingdom rebounded sharply, nearly tripling to 30.9 mg. Colombia took 13.0 mg, up 69% for the month. However, exports to the European Union, the second-largest destination, slipped 7% to 31.9 mg, almost all of which went to the Netherlands. Additionally, shipments to South Korea declined 14% to 10.8 mg, while those to India dropped by half to 9.4 mg. Year-to-date U.S. ethanol exports hit 889.5 mg, up 10% from the same period last year.

The U.S. imported a modest 30,988 gallons ethanol in May, largely denatured fuel ethanol from Canada. Cumulative imports for the first five months of the year totaled just 3.4 mg.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, rose 3% to 918,108 metric tons (mt). Mexico remained the top customer, taking 207,818 mt, or nearly a quarter of all shipments, an increase of 13% for the month. Exports to South Korea, on the other hand, dipped 26% to 95,831 mt, the lowest level of the year. There were notable increases in volumes sold to Indonesia (90,215 mt, +15%), Vietnam (88,184 mt, +12%), the European Union (70,345 mt, +40%), Turkey (56,279 mt, +277%), and Canada (45,803 mt, +12%). Cumulative U.S. DDGS exports through May were 4.50 million mt, down 7% from last year.



Little Change from April in May DMC Margin
NMPF

The May DMC margin lost $0.02/cwt from a month earlier to $10.40/cwt, according to the DMC Decision Tool on the USDA Farm Service Agency website. The Tool had previously predicted the April margin to be the lowest for the year, but a large increase in the price of premium alfalfa hay, equivalent to $0.34/cwt of milk in the DMC feed cost formula, more than offset a $0.30/cwt increase in the May all-milk price, to $21.30/cwt, while much smaller, offsetting prices of corn and soybean meal could only bring the feed cost down by another $0.02/cwt.

The Decision Tool continues to show the DMC margin increasing steadily, now from May, to top out at $13.76/cwt in November and average $12.43/cwt for the year.



NMPF Farmers Advocate for Dairy, Approve Trade Initiative at Board Meeting

NMPF members approved a new initiative to boost dairy exports and welcomed a new cooperative as well as new farmer-leaders into the fold at the National Milk Producers Federation’s Board of Directors meeting June 10-11.

NMPF’s board meeting brought together more than 100 farmers and dairy-cooperative leaders at the nation’s largest dairy farmer trade organization, which serves as the policy voice for milk producers and the cooperatives they own in Washington.

“If you imagine that on top of that the millions of people who buy something we touch every day with the products, the nutritious products that we produce, not just at dinner, not just at breakfast, but all day long, because of what you can turn dairy into, it’s a pretty amazing story, really,” said NMPF Board Chairman Randy Mooney, a farmer from Rogersville, MO, in remarks at the meeting. “We put some of the most nourishing products there are into consumers every day, globally, and that’s something that I think we can all be proud of.”

The board also voted to implement a new member-funded export assistance program called NEXT , starting today.  NEXT, which stands for NMPF EXport and Trade, is the successor to the Cooperatives Working Together program.

A majority of the milk produced by NMPF members supports the NEXT program, with a 2 cent/cwt contribution through 2028. The NEXT program focuses on supporting U.S. dairy exports in key markets around the world to help drive global demand for U.S. dairy products and support U.S. dairy prices.

Two new directors and one new cooperative member also were approved. Joining as new board members are:
    Corey Gillins, Dairy Farmers of America
    Tim Kuenzi, Darigold
    Brenda Dehart, Foremost Farms

NMPF also approved a new co-op member, Lanco-Pennland Cooperative, based in Hagerstown, MD. Lanco-Pennland produces roughly 400 million pounds of milk annually and is a leading East Coast milk marketer.

The meeting also featured remarks from Reps. Dusty Johnson, R-SD, David Valadao, R-CA, and Tony Wied, R-WI.

The meeting was held in conjunction with the Young Cooperators (YC) Dairy Policy and Legislative Forum, which brought together young dairy leaders from 15 states for two days of education and advocacy on Capitol Hill. YCs discussed key dairy priorities directly with members of Congress and staffs to advocate for the Whole Milk for Healthy Kids Act, agricultural labor reform and strong dairy trade policies.

Also in conjunction with the meeting, The National Dairy Farmers Assuring Responsible Management (FARM) Program opened nominations for its annual FARM Excellence Awards, which recognizes farmers, cooperatives and processors that provide consumers with safe, wholesome milk with integrity. Nominations may be submitted via an online form until Aug. 4.



USDA Dairy Products May 2025 Production Highlights

Total cheese output (excluding cottage cheese) was 1.25 billion pounds, 3.3 percent above May 2024 and 1.4 percent above April 2025. Italian type cheese production totaled 517 million pounds, 2.4 percent above May 2024 but 1.0 percent below April 2025. American type cheese production totaled 512 million pounds, 5.6 percent above May 2024 and 3.3 percent above April 2025. Butter production was 212 million pounds, 3.5 percent above May 2024 but 1.2 percent below April 2025.

Dry milk products (comparisons in percentage with May 2024)
Nonfat dry milk, human - 158 million pounds, down 5.6 percent.
Skim milk powder - 47.8 million pounds, down 3.8 percent.

Whey products (comparisons in percentage with May 2024)
Dry whey, total - 72.7 million pounds, up 6.5 percent.
Lactose, human and animal - 94.3 million pounds, up 1.7 percent.
Whey protein concentrate, total - 40.9 million pounds, down 6.5 percent.

Frozen products (comparisons in percentage with May 2024)
Ice cream, regular (hard) - 64.1 million gallons, down 4.4 percent.
Ice cream, lowfat (total) - 38.9 million gallons, down 1.9 percent.
Sherbet (hard) - 1.64 million gallons, down 8.5 percent.
Frozen yogurt (total) - 4.13 million gallons, down 2.7 percent.



NCBA Secures Wins for Cattle Farmers and Ranchers in the One Big Beautiful Bill

Following President Donald J. Trump’s signing of the One Big Beautiful Bill into law, the National Cattlemen’s Beef Association (NCBA) today highlighted key provisions in the bill that deliver wins for America’s family farmers and ranchers.

“Since day one, NCBA has been working with Congress to make sure the One Big Beautiful Bill includes policy priorities for America’s hardworking family farmers and ranchers,” said NCBA President Buck Wehrbein, a Nebraska cattleman. “I’m proud that this legislation protects farms and ranches from being split up and sold off to pay a high Death Tax bill. I’m also glad the One Big Beautiful Bill protects pro-business tax deductions for cattle producers, lowers our taxes overall, and funds programs like the Livestock Forage Disaster Program, Livestock Indemnity Program, voluntary conservation programs, and invests in keeping foreign animal diseases out of the United States.”
 
All of NCBA’s tax priorities are included in the One Big Beautiful Bill along with numerous Farm Bill provisions.  
 
Tax Provisions for American Cattle Producers
Death Tax: The bill increases the Death Tax exemption to $15 million per individual or $30 million per couple, adjusted annually for inflation. This means if the value of your farm or ranch plus equipment, cattle, and other assets are less than $15 million individually or $30 million as a couple, you will pay no Death Tax. The Death Tax has forced many farmers and ranchers to sell off land, equipment, or cattle to pay the high tax. NCBA supports fully eliminating the Death Tax, but until then, this increased threshold is a huge victory for protecting more family farms and ranches than ever before.
 
Section 199A: The Section 199A Small Business tax deduction is made permanent at 20% by this bill. Section 199A allows small businesses, like family farms and ranches, to deduct 20% of their business income, helping them save more of their hard-earned money.
 
Section 179: Section 179 allows small businesses to deduct the cost of equipment. Thanks to the One Big Beautiful Bill, farmers and ranchers will now be able to deduct up to $2.5 million in qualified equipment expenses. The phaseout threshold for this deduction is increased to $4 million and these limits will be adjusted annually for inflation.

Bonus Depreciation: Bonus depreciation allows small business owners to deduct the cost of equipment upfront, rather than deduct depreciation over several years. Under this bill, 100% bonus depreciation is made permanent.

Disaster-Related Casualty Loss: The Big Beautiful Bill permanently extends itemized deductions for personal casualty losses resulting from federally declared disasters. This is an extension of the Federal Disaster Tax Relief Act that was previously supported by NCBA and enacted in December 2024.

Farm Bill Provisions for American Cattle Producers
Livestock Forage Disaster Program: The Big Beautiful Bill increases to two monthly payments for the Livestock Forage Disaster Program and expands the program by allowing it to kick in after 4 consecutive weeks of drought, rather than the previous 8 consecutive weeks.

Livestock Indemnity Program: The bill funds indemnity payments at 100% of the market value for livestock losses due to predation and 75% of market value for losses due to adverse weather. Additionally, there will be payments made for the loss of unborn livestock.

Voluntary Conservation Programs: The Big Beautiful Bill funds several voluntary conservation programs for six years, including:
    $18.5 billion for the Environmental Quality Incentives Program.
    $8.1 billion for the Conservation Stewardship Program.
    $4.1 billion for the Agricultural Conservation Easement Program.
    $2.7 billion for the Regional Conservation Partnership Program.
 
Animal Disease Prevention: The bill increases annual funding for animal disease prevention and cattle health to $233 million per year. This funding goes towards the “three-legged stool” programs that NCBA supports, including:
    $153 million per year for the National Animal Vaccine and Veterinary Countermeasures Bank (NAVVCB), which houses the foot-and-mouth disease vaccine and test kits.
    $70 million for the National Animal Health Laboratory Network (NAHLN).
    $10 million per year for the National Animal Disease Preparedness and Response Program (NADPRP).

Additionally, the One Big Beautiful Bill does not include controversial provisions to sell public lands or expand eminent domain.
 
“NCBA thanks our state affiliates and congressional leaders for passing this legislation and we thank President Trump for signing it into law, showing he is a true friend to America’s cattlemen and cattlewomen,” Wehrbein added.



President Trump Signs Into Law Animal Health, Tax Safeguards for America’s Pork Producers
 
The National Pork Producers Council (NPPC) today thanked President Trump for signing into law the “One Big, Beautiful Bill.”
 
NPPC President Duane Stateler, a pork producer from McComb, Ohio, said, “The ‘One Big, Beautiful Bill’ is one of the most consequential pieces of legislation for American agriculture in years. It helps producers protect our herds by fending off foreign animal diseases, and it also cuts red tape, allowing us to more easily pass down our farms to the next generation.” 
 
“NPPC thanks President Trump for signing “One Big, Beautiful Bill” into law and Chairmen Thompson and Boozman for listening to our input and shepherding this legislation through their respective chambers. We look forward to continuing to work with congressional partners this year on a ‘skinny’ farm bill, which should include measures to prevent a patchwork of conflicting state farming regulations and bring further certainty to the pork industry.”
 
NPPC advocated for the following pork priorities that were included in the “One Big, Beautiful Bill:”
    Preserving necessary resources to protect the nation’s food supply through foreign animal disease (FAD) prevention, including:
o    National Animal Vaccine and Veterinary Countermeasures Bank
o    National Animal Health Laboratory Network
o    National Animal Disease Preparedness and Response Program
o    National Veterinary Stockpile

    Maintaining market access programs for U.S. pork.
o    Funding for the Market Access Program (MAP) and Foreign Market Development Program (FMD) was maintained. The MAP and FMD programs build export markets for U.S. agricultural products through generic marketing and promotion and the reduction of foreign import constraints. 
o    Also, $285 million for a new “Supplemental Agricultural Trade Promotion Program” will support critical market access.

    Maintaining resources for the feral swine eradication program to protect the health of our herds.
o    Established in the 2018 Farm Bill, the hugely successful Feral Swine Eradication and Control Pilot Program helps address the threat feral swine pose to agriculture, ecosystems, and human and animal health, especially through FADs like African swine fever.

    Making the Qualified Business Income Deduction permanent, allowing producers to make organizational decisions for their businesses not based solely on tax liability.
    Making Bonus Depreciation permanent at 100% to provide producers with flexibility to plan cash flows for major asset acquisitions.
    Changing the way the Business Interest Expense Limitation is calculated to avoid harming producers who rely on borrowing to make improvements or normalize cash flow in poor market conditions.
    Increasing the Estate Tax Exemption and making it permanent to prevent new tax exposure for family-owned farms.
    Substantially increasing the expensing limitations of Section 179 to provide producers flexibility in planning cash flows around major asset acquisitions.



Secretary Rollins Praises President Trump’s One Big Beautiful Bill

U.S. Secretary of Agriculture Brooke L. Rollins issued the following statement after President Donald J. Trump signed the One Big Beautiful Bill into law:

“The One Big Beautiful Bill marks the start of a new golden age for America and American agriculture. This historic piece of legislation makes permanent the largest tax cuts in history.

“It provides immediate tax relief to farmers, ranchers, and rural Americans by increasing the small business expensing threshold and permanently extending the Small Business Deduction. Through the President’s leadership, the bill Makes Agriculture Great Again, bolsters the farm safety net, makes crop insurance more affordable, and protects two million family farms from the death tax.

“It puts American Farmers First by preventing countries such as China and Brazil from flooding our markets with biofuel feedstocks that compete with American grown soy, milo, and corn. It extends the 45Z clean fuel tax credit to enhance our domestic energy security.

“While expanding programs to support the farmers who feed, fuel, and clothe America, this legislation also tackles the fraud and waste that has run rampant in the Supplemental Nutrition Assistance Program (SNAP). The bill holds states accountable for their error rates, strengthens work requirements, and prevents illegal aliens from receiving SNAP.

“President Trump’s One Big Beautiful Bill is a win for farmers, ranchers, rural communities, and American taxpayers. His leadership on this landmark piece of legislation is yet another example of an America First promise made and a promise kept,” said Secretary Rollins.



Statement by Mark McHargue, NeFB President, Regarding Passage of "One, Big, Beautiful Bill"

“For the past several years, Nebraska's farmers and ranchers have been working closely with Nebraska's congressional delegation to secure passage of a new Farm Bill and an extension of the many vital tax provisions found in the Tax Cuts and Jobs Act. Failing to do so would have led to the largest tax increase on American families in our nation's history and pushed back passage of important updates to the agricultural safety-net yet again. 

"Today, with the reconciliation bill finally headed to President Trump's desk, farmers and ranchers can celebrate the passage of a bill which extends and, in most cases, makes permanent key federal tax provisions and provides needed updates to Farm Bill risk management tools. 

"We want to thank Nebraska Senators Deb Fischer and Pete Ricketts along with Congressmen Mike Flood, Don Bacon, and Adrian Smith for their tireless work to improve and secure passage of this important bill. 

"Passage of the ‘One, Big, Beautiful Bill’ is a win for Nebraska's farm and ranch families, and we look forward to continuing to work with our stellar congressional delegation on legislation to improve the lives of our state's food, fuel, and fiber producers."  



Gov. Pillen Praises Passage of One Big Beautiful Bill

Governor Jim Pillen released the following statement after the U.S. House of Representatives voted to pass the ‘One, Big, Beautiful’ reconciliation bill.

“The vast majority of Nebraskans support President Trump’s vision for his America First Agenda. This legislation is foundational to extending tax cuts for families, boosting our military, securing our borders, and growing agriculture. Despite attempts by Democrats to run the clock on this bill, Republicans – especially Nebraska’s Congressional delegation – deserve a lot of credit for working day and night to deliver policy that puts our state and country on a trajectory of great growth.”



Iowa Soybean Association Applauds 'One Big Beautiful Bill Act's' Passage

The Iowa Soybean Association (ISA) heralded today’s passage of the “One Big Beautiful Bill Act” by the U.S. House. The sweeping package delivers generational wins for soybean farmers through federal tax code reforms, farm safety net improvements, and biofuel incentives. The legislation now moves to President Donald Trump’s desk for signing.

“Passage of this legislation signifies a huge win for Iowa’s 37,000 soybean farmers and consumers,” said Brent Swart, ISA president and soybean farmer from Spencer.

“We thank the Trump administration and Iowa’s Congressional delegation for taking action on priority issues that will have long-term benefits for Iowa farmers and place us in a better position to succeed,” he said.

Included in the bill were several high priority wins for soybean farmers:
    Strengthened Section 45Z Clean Fuel Production Credit, an essential tool for supporting biofuels, including biodiesel made from soybeans. The final bill reflects several of ISA’s top priorities including extension of 45Z through 2029, removal of indirect land use change (ILUC) penalties, and a new restriction ensuring only feedstocks sourced from the U.S., Mexico, and Canada qualify for the credit.
    Increased Small Biodiesel Producer Credit to 20 cents per gallon, supporting local biodiesel plants and boosting market access for Iowa-grown soy.
    Long-term stability and permanent tax relief to farmers, raising the estate tax exemption to $15 million per individual, locking in the Section 199A deduction, and boosting the soybean reference price to $10 per bushel in 2025 with annual inflation adjustments beginning in 2031.
    Enhanced Agriculture Risk Coverage (ARC) program and Beginning Farmer and Rancher (BFR) benefits for crop insurance are also expanded.
    Doubled funding for USDA’s Market Access Program and Foreign Market Development, creating new global demand channels for Iowa commodities.

“For farmers passing family farms to sons and daughters, the estate tax reform helps secure our generational legacy," said Swart. “We deeply appreciate the work of soybean farmers who are ISA advocate members for engaging with their elected officials on these issues. Offering their opinions and support helped make this pro food and farming policy a reality.”

A strong biodiesel market helps farmers weather difficult economic conditions. Biodiesel and renewable diesel production support 10% of the per bushel price of U.S. soybeans. For Iowa farmers, the biodiesel industry supported $1 per bushel in 2024 and $598 million in overall value.



Big Beautiful Bill Boosts Biodiesel

Following U.S. Senate passage, today the U.S. House of Representatives passed President Trump’s wide-ranging Big Beautiful Bill, a budget reconciliation measure. The bill now goes to President Trump who is expected to sign it. The renewable fuels community worked hard on the bill to extend and modify the Clean Fuel Production Tax Credit known as 45Z.

“IRFA members are excited by the extension of 45Z through 2029,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “Countries around the world and many of our states are demanding ultra-low carbon fuels. The Big Beautiful Bill helps pave the way for the investments to produce those fuels – and to produce them from North America feedstocks. IRFA thanks Iowa’s Senators and House members who worked so tirelessly to ensure 45Z was included and improved during this process.”

The biodiesel industry has struggled in 2025 from low Renewable Fuel Standard (RFS) blending levels and uncertainty around implementation of the original 45Z tax credit, leading several Iowa biodiesel plants to idle. The Big Beautiful Bill includes several provisions that are expected to boost biodiesel demand.

“This bill not only extends the 45Z tax credit through 2029, but it also restores transferability of the credit which is critical for many renewable fuel producers who do not have large tax liabilities,” said Shaw. “Further, led by Sen. Chuck Grassley, the final bill includes a restoration of the small biodiesel producer tax credit for 2025 and 2026. We are hopeful this provision, along with the robust RFS blending levels proposed by President Trump’s EPA, will be enough to get our biodiesel plants running again.”

In an unexpected move, the bill lowered the incentive for producing sustainable aviation fuel (SAF) from $1.75 to $1.00 and made technical changes which make it difficult for a SAF producer using ethanol as their feedstock to claim the credit. SAF has the potential to be a 100 billion gallon a year market by 2050.

“As they move on from this legislation, Congress must remove the outdated and unnecessary restrictions on nationwide, year-round E15 this year,” said Shaw. “With the ag economy hurting, we must drive demand for ethanol and, thereby, for corn. Today’s bill will not boost the ethanol-to-SAF market the way we hoped. We will continue to look for ways to restore that. But the time for excuses on E15 is over. E15 represents the best short-term way to boost ethanol demand, corn grind and farm income. Every farmer I talk to says they don’t want bailouts, they want markets. E15 is that market. IRFA members will be working with our delegation to make 2025 the year E15 is unleashed.”

Shaw added: “Iowa renewable fuels producers and farmers are ready to do their part to maximize American energy dominance. We will continue to work with President Trump and our biofuels champions in Congress to ensure the Midwest is a key part of the strategy. That’s how we enhance energy security, boost markets for farmers, and create demand for renewable fuels. The Big Beautiful Bill was a solid step in the right direction. Let’s not hesitate to take the next steps by finalizing the robust RFS proposal and giving every U.S. consumer the choice to buy E15.”



Clean Fuels Welcomes Extensions and Improvements to §45Z Tax Incentive
 
Clean Fuels Alliance America welcomed Congress' improvements to the §45Z Clean Fuel Production Credit included in the "One Big Beautiful Bill" and thanked President Trump for signing them into law. Clean Fuels looks forward to working with the administration and the U.S. Treasury on prompt, clear rules implementing the tax credit for 2025 and beyond.

“Clean Fuels thanks Congress for working overtime to provide certainty for biodiesel and renewable diesel producers – especially small companies – so they can resume production and industry growth. Clean Fuels especially thanks Sen. Chuck Grassley (R-IA) for securing an enhancement to the Small Agri-Biodiesel Producer Credit to help small producers as they make the transition to the §45Z Clean Fuel Production Credit," said Kurt Kovarik, Clean Fuels' Vice President of Federal Affair. "While the extension of the §45Z credit with transferability through 2029 provides some immediate stability, our industry continues to urge Treasury to promptly propose and finalize clear, reliable rules for the credit.”

Enactment of the "One Big Beautiful Bill" immediately extends the availability of the §45Z Clean Fuel Production Credit and enables taxpayers to transfer it through 2029, providing forward-looking certainty and enabling small producers to fully access the value of the credit.

It also extends the §40A Small Agri-Biodiesel Producer Credit for the remainder of 2025 through 2026 and enhances the value to $0.20 per gallon. Small biodiesel facilities with production of 60 million gallons per year can access this credit in addition to §45Z and use the same transferability rules as §45Z. Clean Fuels thanks Sen. Chuck Grassley (R-IA) for securing this extension to help provide certainty to small producers as they make the transition to §45Z.

The bill further directs Treasury to clarify “qualified sales” rules and allow additional fuel sales arrangements, one of several technical issues that must be addressed with prompt rules and guidance. Beginning in 2026, Treasury will exclude emissions from indirect land use change (ILUC) when determining the lifecycle GHG emissions of a fuel, which will help level the credit value for domestic crop-based fuels and other low-CI feedstocks. And the law will restrict the credit to fuels made from feedstocks grown in the United States, Canada or Mexico, giving a further boost to American farmers and agriculture. 



NFU Responds to Reconciliation Bill Passage, Calls for Full Farm Bill Policy 

National Farmers Union (NFU) President Rob Larew made the following statement after the passage of the budget reconciliation bill in the House and Senate.

“We appreciate the efforts of the House and Senate Agriculture Committees to include long-overdue investments for family farmers and ranchers in this legislation. The bill strengthens the farm safety net, supports biofuels and conservation, and extends key tax incentives that help keep family farm operations viable. These wins reflect persistent advocacy from our Farmers Union members across the country, who raised their voices during our Week of Action in May.

“However, these gains are paired with harmful tradeoffs. Cuts to SNAP divide the farm bill coalition and reductions in Medicaid will have harmful effects on millions of Americans. Farm policy should unite us. This approach undermines the foundation of the farm bill and puts its future at risk. 

“Now, we urge lawmakers to build on these investments and finish the job. A comprehensive farm bill policy is still urgently needed, one that strengthens rural communities, ensures fair markets, and reflects the full scope of challenges facing today’s farm families. We look forward to continuing our work with both House and Senate leaders to get this done.” 



Farm Bureau Applauds Final Passage of One Big Beautiful Bill

American Farm Bureau Federation President Zippy Duvall commented today on final passage of the One Big Beautiful Bill Act.

“Farm Bureau applauds the House and Senate for passing legislation that will bring certainty to America’s farmers and ranchers. Modernizing important farm safety net programs and making permanent critical tax provisions could be the difference between staying in business or shutting down the family farm.

“More than half of farmers are losing money, so an increase in reference prices is desperately needed, and tax tools will help farmers and ranchers plan for the next season and the next generation.

“Lawmakers took a big step toward ensuring America’s farmers and ranchers can continue to keep pantries filled for America’s families.” 



Alongside President Trump in Iowa, Secretary Rollins Called for Celebration of America by Recognizing America 250 at State Fairs Across the Nation 

President Donald J. Trump held a massive celebration on the eve of Independence Day at the Iowa State Fairgrounds where he launched the year-long Great American State Fair in celebration of America’s 250th birthday. The Great American State Fair will travel across the country, bringing America 250 programing to existing state and county fairs and will culminate with a festival on the National Mall on July 4, 2026 with exhibits from all 50 states.

As part of President Trump’s announcement, U.S. Secretary of Agriculture Brooke L. Rollins unveiled a proclamation calling on states across the nation to celebrate America’s proud agriculture heritage by implementing America 250 programing at every state fair during the year leading up to the anniversary.

“For nearly 250 years, the Great American Experiment has stood as a beacon of liberty, forging a path that has saved the world from tyranny and secured peace and prosperity for billions. The display of America’s strong livestock, bountiful harvests, rich communities, and thriving families at state fairs across the nation is evidence that the vision our founders cast 249 years ago endures. As we approach our nation’s 250th birthday, I call on all Americans—including state leadership at every level—to celebrate the achievements of our nation surrounded by the families and patriots who have dedicated their lives to feeding, fueling, and clothing our country for centuries,” said Secretary Rollins.

The proclamation signed by Secretary Rollins highlighted the historic significance of the 1876 Centennial Exposition, the 1976 Bicentennial Exposition, and the upcoming 2026 Semiquincentennial celebration. State fairs around the country are encouraged to establish patriotic centers of celebration for America 250 and imbue their 2025 and 2026 events with historic patriotism and tributes to the founding spirit of our Republic.

More than 35 states have already committed to celebrating America 250 with the Great American State Fair in 2025. By making America 250 the centerpiece of their 2025–2026 seasons, these fairs are set to spotlight the heart of our nation through vibrant fireworks displays, tributes to veterans, historical exhibits, and more. Their celebrations will honor America’s heritage and ignite national pride across the country.

States are encouraged to issue their own proclamations and work in conjunction with state and local fairs and rodeos to ensure the year of America’s 250 celebration is the most patriotic in history leading up to America’s birthday. The states of Alabama, Mississippi, Nebraska, Oklahoma, Virginia, West Virginia, and Wyoming are helping to lead the way with proclamations issued to launch the initiative. While all states will be invited to participate in America 250, the state with the most patriotic 2025 state fair will be honored during the Great American State Fair on the National Mall in July, 2026.

More details about the National Mall event will be available soon.