Friday February 20 Ag News - RMI Below Growith Neutral - USDA Outlook Forum Notes - NeExt Webinar on boosing preg rates in young cows - Red Meat Prod Falls 6% - Record Ethanol Exports - and more!

Rural Mainstreet Index Falls Below Growth Neutral

The overall Rural Mainstreet Index (RMI) dropped below growth neutral 50.0 for February, according to the latest 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 February fell to 47.9 from 52.0 in January. This marks the 12th time since January 2025 that the index has moved below the growth neutral threshold. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
 
“Due to weakness in the farm economy, especially for grain, approximately 75% of bankers support additional Congressional financial support for the agriculture sector. Pullbacks in farm exports for 2025 continue to undermine the regional farm economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
 
According to the February survey, farm loan delinquency rates are plateauing at a very modest rate of less than 1.5%.
 
Farming and ranchland prices: After rising above growth neutral in December, the farm and ranchland index fell below the threshold for the last two months with a February index of 45.5, down from January’s 46.0.   
 
According to trade data from the International Trade Association (ITA), regional exports of agriculture goods and livestock for the first 11 months of 2025, compared to the same period in 2024, fell from $11.5 billion in 2024 to $10.8 billion in 2025, for a decline of 6.6%. Between 2024 and 2025, Nebraska was the leading state with an expansion of 35.1%, and Illinois was the lagging state with a drop of 34.9%.
 
Farm equipment sales: The farm equipment sales index sank to a very weak 16.7 from 18.8 in January. “This is the 30th straight month that the index has fallen below growth neutral. Lower interest rates and the $12 billion of federal farm support have yet to stimulate farm equipment sales,” said Goss.
 
Below are the state reports:
Nebraska: The state’s Rural Mainstreet Index for February fell to 45.0 from January’s 49.2. The state’s farm and ranchland price index for February declined to 43.1 from January’s 44.2. Nebraska’s new hiring index declined to 46.5 from January’s 48.1. According to the latest trade data from the ITA, Nebraska exports of agriculture goods and livestock for the first 11 months of 2025 stood at $1.2 billion, compared to $871.5 million for the same period in 2024, for a 35.1% increase.
 
Iowa: February’s RMI for the state sank to 46.5 from 52.7 in January. Iowa’s farm and ranchland price index for February fell to 44.4 from January’s 46.1. Iowa’s new hiring index for February slumped to 47.9 from January’s 49.0. According to the latest trade data from the ITA, Iowa exports of agriculture goods and livestock for the first 11 months of 2025 stood at $1.7 billion, compared to $1.3 billion for the same period in 2024, for a 32.5% expansion. 
 
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.



USDA: Farmers to Plant More Soybeans in 2026

U.S. farmers will plant more soybeans and less corn in 2026 than last year, although both harvests were expected to be the second-largest on record, the USDA said on Thursday.

The agency projected corn plantings at 94 million acres this year, down from an 89-year high of 98.8 million acres in 2025. Soybean seedings were expected to rise to 85 million acres, from 81.2 million acres last year.

Growers face difficult decisions this year due to a global supply glut, weak crop prices and rising costs for inputs such as seeds and fertilizer. U.S. farm income is projected to drop 0.7% despite near-record government payments, which are expected to account for nearly 29% of producers' revenue.

Most Midwest farmers grow both crops, alternating what is planted on each field every year to preserve soil health. But some acres can break from the traditional rotation if growers see an opportunity to turn a better profit.

Corn Acreage Forecast Below Average in Reuters Poll
The USDA's corn acreage forecast, released at the start of its annual Ag Outlook Forum, was below the average estimate of 94.9 million acres in a Reuters analyst poll. Soybean seedings topped the average estimate of 84.9 million acres.

Low corn prices and ample supplies following a record U.S. crop in 2025 were expected to discourage growers from expanding plantings this year, although good demand from exporters and ethanol biofuel makers will likely limit a steeper decline, analysts said.

Soybean acres, meanwhile, were seen rising despite ongoing trade tensions with top importer China and stiff export competition from top supplier Brazil, where farmers have been harvesting a likely record crop.

Rising domestic demand for soybean oil from renewable fuel makers has kept a firm floor under prices.

Assuming normal weather, the USDA forecast the 2026 U.S. corn harvest at 15.755 billion bushels and a soybean harvest of 4.450 billion bushels.

After demand from exporters, livestock feeders and biofuel makers is met, the U.S. will have 1.837 billion bushels of corn left at the end of the 2026/27 marketing year on August 31, 2027, the USDA projected, down from a seven-year high of 2.127 billion bushels a year earlier.

Soybean stocks at the end of the 2026/27 season were projected to rise slightly to 355 million bushels from 350 million bushels at the end of 2025/26.

Corn Exports Seen Falling, Soybeans Rising
The USDA forecast 2026/27 corn exports at 3.1 billion bushels, down 200 million bushels from 2025/26 due to rising competition from South American suppliers, while soybean exports were seen rising by 125 million bushels to a two-year high of 1.7 billion bushels.

Demand from U.S. soybean processors that crush beans into soymeal for livestock feed and soyoil for food and biofuel was projected at a record 2.655 billion bushels.

U.S. wheat stocks were forecast at 933 million bushels by the end of the 2026/27 marketing year, nearly unchanged from a year earlier as lower exports following bumper crops in rival suppliers Argentina and Australia offset a drop in U.S. production.

The USDA projected wheat exports for 2026/27 at 850 million bushels, down 50 million from the current marketing year. 



Nebraska Extension to host webinar on low pregnancy rates in young cows

Low pregnancy rates in young cows can significantly impact herd replacement costs and long-term profitability for cow-calf producers. To address this challenge, Nebraska Extension will host a webinar, Considerations of Causes of Low Pregnancy Rates in Young Cows, on Tuesday, March 10.
The webinar will begin at 6:30 p.m Mountain time (7:30 p.m. Central) and focus on key biological and management factors that influence reproductive success in young cows.

Topics and presenters include:
    Heifer Development – Dr. Rick Funston and Dr. Kacie McCarthy
    Genetic Selection – Dr. Matt Spangler
    Nutrition for the Cow – Dr. Karla Wilke
    Infectious Diseases and Infertility – Dr. Brian Vander Ley and Dr. Matt Hille.

The first 40 minutes of the program will feature short presentations from each speaker, followed by a live questions-and answer session. Participants will have the opportunity to engage directly with Nebraska Extension specialists, veterinarians and educators.

The webinar is open to cow-calf producers, veterinarians and consultants. The goal of the program is to encourage discussion around low pregnancy rates in young cows and to provide research-based insights that can be applied in herd management decisions.

There is no cost to attend, but advance registration is requested. To register, email Aaron Berger at aberger2@unl.edu by Friday, March 6. A recording of the webinar will be made available to registered participants following the program.

If you would like to attend an in-person location to view the webinar and engage in discussion with other producers, the following locations will also host the webinar. Please RSVP by March 6.
    Buffalo County, Office Building, 1400 E 34th St., Kearney, Brent Plugge, 308-236-1235
    Holt County Courthouse Annex, 128 N 6th St., O’Neill, Bethany Johnston, 402-336-2760
    Nance County Office, 304 3rd St., Fullerton, Josie Crouch, 308-536-2691
    Sheridan County Office, 800 South Loofborrow St., Rushville, Brock Ortner, 308-327-2312
    Lincoln County Office, 402 W. State Farm Rd. Snyder Building., North Platte, Randy Saner, 308-532-2683
    Central Sandhills Area Office, Thomas County Courthouse, Thedford, TL Meyer, 308-645-2267

For more information, contact Berger at 308-235-3122 or aberger2@unl.edu 



Council Delegates, Staff Honored For 10 Years Of Service

U.S. Grains & BioProducts Council (USGBC) members and staff who dedicated 10 years of service to the organization were recognized at its 23rd International Marketing Conference and 66th Annual Membership Meeting last week.

The U.S. Grains & BioProducts Council (USGBC) celebrated members and staff who reached a decade of service to the organization at its 23rd International Marketing Conference and 66th Annual Membership Meeting in Panama City, Panama last week.


The following delegates received plaques commemorating their accomplishments:
    Doug Albin – Minnesota Corn Research & Promotion Council
    Jay Fischer – Missouri Corn Merchandising Council
    Dennis Friest – Iowa Corn Growers Association
    Brandon Hunnicutt – Nebraska Corn Board
    Dennis McNinch – Kansas Corn Commission
    Jay Schutte – Missouri Corn Merchandising Council
    Mark Scott – Missouri Corn Merchandising Council

In addition, Haksoo Kim, USGBC director in South Korea, was also recognized for his dedication to the Council. 

“The Council’s membership is the lifeblood of the organization, and its staff are daily advocates for its mission of developing markets, enabling trade and improving lives,” said Mark Wilson, USGBC chairman.

“Dedicating 10 years of time and effort for the advancement of U.S. agricultural products abroad is a tremendous achievement and the Council is stronger thanks to their work.”



Iowa Farmer Roger Zylstra Recognized For 15 Years Of Service To USGBC

Jasper County, Iowa farmer Roger Zylstra was presented with a plaque to commemorate his 15 years of service to the U.S. Grains & BioProducts Council (USGBC) at the organization’s 23rd International Marketing Conference and 66th Annual Membership Meeting in Panama City, Panama last week.

Zylstra farms corn and soybeans with his son, Wesley, and has served terms in leadership for the Iowa Corn Growers Association and Iowa Corn Promotion Board.

It was through his involvement at the state level he heard about the USGBC, being asked to host a trade team at his farm and became more involved from there.

“The relationships we build through trade help us understand and appreciate the people of other countries,” Zylstra said.

“It has been an honor for me to participate with the U.S. Grains & BioProducts Council in telling the story of U.S. agriculture to people around the world.”

Zylstra has been a member of the Council’s Asia and Innovation and Sustainability Advisory Teams (A-Teams) and was recently chairman of the Council’s Sustainable Corn Export Committee.



Industry Leaders Meet Lawmakers for Iowa Biodiesel Day on the Hill

Biodiesel advocates from across the state gathered at the Capitol Thursday for the Iowa Biodiesel Day on the Hill, urging lawmakers to extend and increase the state’s Biodiesel Production Tax Credit. It’s the single most critical step to stabilize and grow Iowa’s struggling biodiesel industry, supporters said.

Hosted by the Iowa Biodiesel Board, the annual event brings producers, soybean farmers and industry partners together with legislators to discuss the challenges facing biodiesel and the policy solutions needed to keep plants operating and workers employed.

After one of the most difficult years in industry history, Iowa biodiesel production is estimated to have dropped almost a third compared to the previous year. Most plants have idled periodically or reduced production in the face of uncertain federal policy and unfavorable market conditions, which made operations economically unsustainable.

Against that backdrop, industry leaders stressed that strengthening Iowa’s Biodiesel Production Tax Credit is essential to helping the industry bounce back.

“The Biodiesel Production Tax Credit is the most important tool the state has to keep our plants running and our people working,” said Grant Kimberley, executive director of IBB.

“Extending and increasing this credit to five cents per gallon and providing long-term certainty through 2030 will give producers the stability they need to make sound business decisions. It’s an investment that pays dividends for Iowa farmers, rural jobs and our energy security.”

The credit is currently set to expire Dec. 31, 2027. Legislation this session would expand it from 4 cents to 5 cents-per-gallon and extend it through 2030. When the last extension of the credit occurred with the governor’s biofuels access legislation in 2022, Iowa had 11 operating biodiesel plants. Today, only eight remain. 

Since the credit is capped per facility, and fewer operating plants are around to claim it, the cost of the credit to the state is expected to stay well within its original budget footprint, Kimberley said. 

Federal uncertainty continues to weigh heavily on the industry. While proposed Renewable Fuel Standard volumes for biomass-based diesel are the highest ever for 2026 and 2027, the rule has not been finalized, leaving producers in a precarious position. Similarly, guidance on the federal 45Z Clean Fuel Production Credit has only recently been proposed and still has unanswered questions, limiting producers’ ability to fully utilize the incentive.

Despite those challenges, biodiesel remains a powerful economic driver for Iowa. In 2024, biodiesel plants generated more than $1.6 billion in direct sales and supported 1,609 jobs statewide, contributing $520 million in value added to the Iowa economy when accounting for indirect and induced effects (Decision Innovation Solutions).

During today’s meetings, IBB members also discussed additional legislative priorities, including lifting the cap on Renewable Fuels Infrastructure Program grants for biodiesel projects, requiring B20 compatibility in state-leased diesel vehicles, and improving fuel retailer reporting to ensure accurate tracking of biofuels’ impact.

However, Kimberley stressed that extending and increasing the Biodiesel Production Tax Credit remains the top priority.

“Strengthening this credit ensures our farmers have a strong market for their soybeans, our communities retain good-paying jobs, and our state remains a biofuels powerhouse,” Kimberley said. 

Iowa is the nation’s leading biodiesel-producing state and soybean oil producer.



Commercial Red Meat Production Down 6 Percent from Last Year

Commercial red meat production for the United States totaled 4.58 billion pounds in January, down 6 percent from the 4.89 billion pounds produced in January 2025.

Beef production, at 2.12 billion pounds, was 11 percent below the previous year.  Cattle slaughter totaled 2.38 million head, down 12 percent from January 2025.  The average live weight was up 25 pounds from the previous year, at 1,464 pounds.

Veal production totaled 1.6 million pounds, 33 percent below January a year ago.  Calf slaughter totaled 8,500 head, 37 percent below January 2025.  The average live weight was up 22 pounds from last year, at 334 pounds.

Pork production totaled 2.45 billion pounds, 2 percent below the previous year.  Hog slaughter totaled 11.2 million head, 3 percent below January 2025.  The average live weight was up 1 pound from the previous year, at 294 pounds.

Lamb and mutton production, at 10.4 million pounds, was 4 percent below January 2025.  Sheep slaughter totaled 172,600 head, 1 percent below last year.  The average live weight was 118 pounds, down 5 pounds from January a year ago.

By State     (million lbs.  -  % Jan '25)
Nebraska ....:     622.5          87       
Iowa ...........:     807.8          99       



Weekly Ethanol Production for 2/13/2026

According to EIA data analyzed by the Renewable Fuels Association for the week ending February 13, ethanol production increased 0.7% to 1.12 million b/d, equivalent to 46.96 million gallons daily. Output was 3.1% higher than the same week last year and 4.9% above the three-year average for the week. Still, the four-week average ethanol production rate ticked down to 1.07 million b/d, equivalent to an annualized rate of 16.51 billion gallons (bg).

Ethanol stocks expanded 1.4% to a four-week high of 25.6 million barrels. Yet stocks were 2.4% less than the same week last year and 0.7% below the three-year average. Inventories built across all regions except the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, ramped up  5.4% to 8.75 million b/d (134.49 bg annualized). Demand was 6.2% more than a year ago and 3.5% above the three-year average.

Refiner/blender net inputs of ethanol climbed 3.0% to 866,000 b/d, equivalent to 13.31 bg annualized. Net inputs were 1.9% more than year-ago levels and 2.3% above the three-year average.

Ethanol exports broadened 29.2% to an estimated 177,000 b/d (7.4 million gallons/day). It has been more than a year since EIA indicated ethanol was imported.



December U.S. Ethanol Exports Surge Near Record as DDGS Demand Softens

U.S. ethanol exports leaned 4% higher in December to 220.3 million gallons (mg), representing the second-largest monthly volume on record. Roughly half of shipments went to Canada and the European Union, both of which recorded month-on-month declines that were offset by rebounds in several other major markets. Canada remained the leading destination, importing 66.4 mg (-14%) and accounting for roughly two-thirds of all denatured fuel ethanol sales. Exports to the European Union slipped 6% to 42.7 mg—almost entirely routed through the Netherlands—which remained the principal outlet for undenatured fuel ethanol. Shipments to Jamaica surged to a record 16.9 mg, while exports to the Philippines tripled to a seven-year high of 16.1 mg. India halved its purchases to 14.9 mg. Brazil re-entered the market with 13.3 mg, its highest import level since April 2022. Other major destinations included Colombia (9.7 mg, -25%), South Korea (8.8 mg, +215%), the United Kingdom (7.5 mg, -56%), and Nigeria (7.4 mg, +13%). For the full year, U.S. ethanol exports climbed to a new record of 2.18 billion gallons.

The U.S. recorded no imports of foreign ethanol in December. Total U.S. imports for the year reached just 3.7 mg, down 2% from 2024 and the lowest annual volume on record.

U.S. exports of dried distillers grains with solubles (DDGS)—the high-protein coproduct of dry-mill ethanol plants—declined 4% to an eight-month low of 894,665 metric tons (mt), reflecting softer demand across most major markets. Mexico, the largest buyer, cut imports 13% to a ten-month low of 164,406 mt. In contrast, Indonesia increased purchases 7% to a 20-month high of 112,706 mt. South Korea declined 7% to 110,538 mt, while Vietnam dropped 30% to 80,920 mt. Other notable markets included Canada (63,649 mt, +18%), New Zealand (60,000 mt, +49%), the United Kingdom (41,337 mt, +131%), and Turkey (38,220 mt, -52%). The remaining 25% of December exports were distributed across thirty additional countries. Strong momentum in the second half of the year lifted total U.S. DDGS exports to 11.60 million mt in 2025, the fourth-highest annual volume on record.



Growth Energy Celebrates Banner Year for Ethanol Exports

Growth Energy, the nation’s largest biofuel trade association, applauded today’s release of final 2025 trade data showing that U.S. exports of U.S. ethanol eclipsed the record set in 2024. In total, the U.S. exported 2.18 billion gallons of ethanol valued at $4.8 billion in 2025, a 13 percent volume increase from 2024 levels. Despite an overall agricultural trade deficit, U.S. ethanol experienced a trade surplus of 2.12 billion gallons and $4.55 billion.

“American biofuel exports are powering growth in rural communities, supporting new manufacturing jobs, and advancing U.S. energy leadership on the global stage,” said Growth Energy CEO Emily Skor.  “There’s no question that the broader farm economy is struggling, but the latest data shows that biofuels can continue to be a source of strength for American agriculture. Each new trade agreement opens valuable markets for America’s surplus grain, and combined with strong domestic markets for E15, biofuels are positioned to reignite growth across the heartland. We applaud United States Trade Representative Jamieson Greer, Secretary Rollins and President Trump for prioritizing U.S. ethanol in the administration’s new trade frameworks, and we look forward to fueling another banner year for American exports in 2026.” 



Farm Bill 2.0 Provides Additional Certainty to American Cattle Producers

House Agriculture Committee Chairman G.T. Thompson released the text of Farm Bill 2.0 (the Farm, Food, and National Security Act of 2026). The National Cattlemen’s Beef Association (NCBA) welcomes the provisions that strengthen the agriculture measures included in the One, Big, Beautiful Bill (OBBB).
 
“We appreciate Chairman Thompson’s leadership and diligent work to provide legislative answers to the ongoing needs of cattle producers,” said NCBA President and Virginia cattle producer Gene Copenhaver. “Chairman Thompson’s bill includes important provisions to streamline voluntary conservation programs, protect grazing as a land management tool, address the critical shortage of rural veterinarians, and establish an important pilot program to safely explore better options for direct-to-consumer sales of locally raised beef. We thank Chairman Thompson and members of the House Agriculture Committee for their dedicated work during this Farm Bill cycle.” 
 
Farm Bill 2.0 significantly builds on the accomplishments secured by the beef industry in the OBBB that included expanded access to drought relief, depredation reimbursement, funding to protect the U.S. cattle herd from foreign animal diseases, and an increased estate tax exemption. These new provisions included in Farm Bill 2.0 will help ensure the success of cattle producers by:
    Improving the implementation of conservation programs
    Expanding access to credit and increasing outdated agricultural loan limits
    Amending veterinary grant programs to relieve ongoing rural veterinary shortages 
    Clarifying animal disease traceability eligibility under the National Animal Disease Preparedness and Response Program (NADPRP) 
    Establishing a five-year pilot program to help expand custom-exempt processing facilities and increase consumer access to locally raised beef.

“This bill is the culmination of the years-long Farm Bill process that addresses the needs of cattle producers which weren’t included in the reconciliation bill last year,” said Ethan Lane, NCBA Senior Vice President of Government Affairs. “Cattlemen and women are already seeing the benefits of the historic achievements included in the reconciliation bill, and NCBA members look forward to building on that progress by passing Farm Bill 2.0. We strongly urge the House and Senate to swiftly pass this bill to fill the remaining legislative gaps facing animal agriculture.” 



NFU Statement on the Farm, Food, and National Security Act of 2026

National Farmers Union (NFU) President Rob Larew issued the following comments in response to the U.S. House of Representatives Committee on Agriculture releasing H.R. 7567, the Farm, Food, and National Security Act of 2026. 

"Family farmers and ranchers are facing a significant economic crisis, and the next farm bill should reflect that reality. Regrettably, the bill that will be considered by the agriculture committee next week fails to match the magnitude of the challenges in front of us. 

"Trade disruptions, rising input costs, depressed commodity markets and corporate consolidation are squeezing family farmers from every direction. We need immediate relief, but we also need long-term structural reform to farm policy that will restore financial viability for our farms and ranches. 

"The bill takes several encouraging steps that NFU supports. The legislation revives the model of the recently cancelled Local Food Procurement Agreement program by authorizing state-led local food purchasing programs for the first time. It includes Farmers Union–backed credit improvements—such as higher Farm Service Agency loan limits and a pre-approval pilot—and authorizes local meat processing grants. It also preserves the Food for Peace program. 

"But too much of the bill is heading in the wrong direction. The bill fails to address the ongoing damage caused by the administration's tariff policies and continues to rely on ad hoc disaster assistance rather than establishing stronger farm policy tools. It also fails to reinstate mandatory country-of-origin labeling for beef at a time when imports are on the rise and transparency is being demanded by farmers and consumers. And unfortunately, new authorizations for local food procurement, meat processing, and others that NFU supports are not funded. 

"We also have concerns about provisions that would limit states' ability to address questions of liability related to agricultural inputs — an issue many of our state organizations have raised. NFU believes these questions deserve careful consideration as the bill moves forward. 

"Last summer's reconciliation package separated key farm safety net improvements and made deep cuts to nutrition programs — two pillars that have traditionally been negotiated together as part of a comprehensive farm bill. Splitting these from the rest of the farm bill weakened the bipartisan coalition that typically accompanies the legislation. This markup is the first farm bill after that split, and it shows. 

"This isn't the farm bill we want, and it's not the farm bill we need. While we appreciate the continued effort to advance a farm bill, lawmakers are failing to seize the opportunity to deliver bold, comprehensive reforms that will truly support America's family farmers and ranchers." 



USMEF Statement on U.S.-Indonesia Agreement on Reciprocal Trade

The Office of the U.S. Trade Representative (USTR) announced on Thursday an Agreement on Reciprocal Trade between the United States and Indonesia. As detailed here, the agreement includes tremendous market access gains for U.S. red meat.

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

Indonesia has been a leading priority for the U.S. red meat industry throughout recent negotiations on reciprocal trade. Especially without access to China, the U.S. beef industry needs to be able to serve the Indonesian market, which demands similar items as China and other Asian destinations. Currently, Indonesia is essentially closed to U.S. beef due to its trade-limiting import licensing system and effective cap on imports. The new agreement addresses the many barriers maintained by Indonesia, and successful implementation will allow Indonesian importers and consumers to have meaningful, consistent access to U.S. beef for the first time. The agreement also includes a 50,000 metric ton annual purchase commitment. This is in line with USMEF's market potential estimates and should help incentivize true implementation of the commitments Indonesia has made on removing its non-tariff barriers. Export value could reach $400 million to $500 million in the near term, following implementation.

Exports of U.S. pork have also been restricted by Indonesia’s import licensing regime and by limited approval of U.S. plants. These obstacles go away under this agreement, enabling further growth in U.S. pork exports, including further processed products.

USMEF thanks the Trump administration for its continued focus on breaking down barriers for U.S. agricultural exports and we look forward to successful implementation of the U.S.-Indonesia agreement. 



New U.S.–Indonesia Agreement Secures Access to Critical Dairy Market

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) celebrated today’s signing of a new U.S.–Indonesia trade agreement that would provide key market access expansions and protections for American dairy products.

Following years of NMPF, USDEC and CCFN advocacy, the deal will eliminate tariffs on all U.S. dairy exports; recognize U.S. regulatory oversight, including by listing all U.S. dairy facilities and accepting dairy certificates issued by U.S. regulatory authorities; and commit to protecting 40 common cheese names like “parmesan.” U.S. dairy exporters have long faced challenges with Indonesia’s excessively slow and burdensome facility registration process, making the issue’s resolution critical. 

“This important agreement enhances the strong and growing relationship we’ve developed with Indonesia’s government and dairy industry,” said Krysta Harden, president and CEO of USDEC. “Through sustained engagement, we’ve laid a solid foundation for partnership. This deal reinforces that progress and positions U.S. dairy to expand its capacity to serve as a reliable partner in supporting Indonesia’s dairy sector and nutrition goals.”

The agreement builds on the U.S.–Indonesia Dairy Partnership, launched in 2024 to deepen cooperation across multiple fronts. As part of this collaboration, USDEC partnered with Indonesian institutions to support the government’s Free and Nutritious School Meals initiative, which includes the goal of providing school milk to students. 

NMPF and USDEC also signed a memorandum of understanding (MOU) with the Indonesian Chamber of Commerce and Industry (KADIN) last May to expand dairy trade and strengthen commercial ties. USDEC also signed a MOU with the Indonesian Food and Beverage Industry Association (GAPMMI) last October. A USDEC-GAPMMI roundtable led by USDA Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg was held earlier this month to deepen that connection. 

“Indonesia is the fourth-most populous country in the world and, it’s a critical market for U.S. dairy farmers,” said Gregg Doud, president and CEO of NMPF. “Thank you to Ambassador Greer and the USTR team for securing expanded access that will directly translate into stronger demand for U.S. dairy products.”

“The common names protections included in this agreement are especially important for America’s farmers and exporters,” said Jaime Castaneda, executive director of CCFN. “Ensuring U.S. producers can continue to market and sell products like ‘parmesan’ and ‘feta’ in Indonesia without unfair restrictions helps preserve export opportunities and supports the livelihoods of farmers and manufacturers across the United States.”

Indonesia is currently the eighth-largest export market for U.S. dairy products. U.S. dairy exports to Indonesia in 2025 totaled $222 million, including strong demand for milk powders, whey products, cheese and other dairy ingredients. The agreement is the ninth trade deal secured to date by the Administration that includes new market access for U.S. dairy products, including an agreement signed with Taiwan last week. NMPF, USDEC and CCFN will continue to work with the U.S. and Indonesian governments to swiftly and fully implement the agreement’s provisions.



NMPF Lauds USDA Dairy Purchase Announcement

Dairy farmers thanked USDA and Sec. Brooke Rollins for taking steps to boost low milk prices and expand dairy consumption through significant Section 32 purchases of a balanced, effectively targeted mix of dairy products, including the first major butter purchases in five years. 

“Dairy farmers have shared in the struggles faced throughout the agricultural economy, and these purchases will provide important relief to producers who will benefit from the additional demand, helping them provide nutritious dairy products to Americans and the world,” NMPF President & CEO Gregg Doud said. 

Specifically, USDA is purchasing:
    $75 million of butter;
    $32.5 million in cheddar cheese;
    $20.5 million in fresh fluid milk;
    $10 million of Swiss cheese; and 
    $10 million in Ultra-High Temperature (shelf-stable) milk.

The $148 million in purchases is part of $263 million purchase announcement for numerous agricultural commodities and matches the amount requested by NMPF in a letter sent to USDA last November, which was followed by extensive conversations and further official communication with USDA. Other recent USDA purchases intended to boost the farm economy have included $80 million for specialty crops and $100 million for seafood. 

USDA Section 32 purchases, authorized by the Agricultural Adjustment Act of 1935, allow USDA to buy surplus, domestically produced agricultural products to stabilize farm products and provide food to federal nutrition assistance programs. 

Under the program, USDA’s Agricultural Marketing Service notifies industry and stakeholders of new opportunities by issuing Purchase Program Announcements throughout the year. Following today's announcement, USDA will invite offers from approved USDA vendors and award purchase contracts. 
 



Executive Order Prioritizes Domestic Glyphosate & Phosphorus Production
American Soybean Association

President Trump signed an executive order yesterday directing federal action to strengthen domestic production of elemental phosphorus and glyphosate-based herbicides, citing their importance to national security, agricultural productivity, and food affordability.

Glyphosate is identified as a widely used crop protection tool that supports high yields and cost efficiency. Elemental phosphorus, a key ingredient in glyphosate formulation and used in defense supply chains and other industrial applications, has been designated a scarce material. The U.S. imports approximately 6 million kilograms annually, raising supply chain concerns.

The order delegates Defense Production Act authorities to the Secretary of Agriculture to help ensure adequate domestic supplies. USDA is authorized to issue orders and implement regulations in coordination with defense officials while maintaining the viability of domestic producers.