June 13, 2025                                                                              

2025 Q1 Milk Production Grows Modestly

Rabobank says milk production grew modestly across the Big Seven exporting regions in the U.S. during Q1, expanding by 0.5 percent year-over-year. In total, RaboResearch forecasts 2025 milk production from the Big Seven at 326.7 million metric tons, an increase of one percent or 3.2 million metric tons, the highest annual volume gain since 2020. However, demand concerns are mounting in many economies as consumer sentiment has waned amid weak and uncertain global economic conditions. ”A number of factors are weighing on demand,” said Mary Ledman, Global Dairy Strategist at RaboResearch. “These include record or near-record-low consumer confidence in the U.S., troubling indicators of economic struggles in China, and declining sales data from restaurants and consumer packaged goods companies in many regions.” Demand trends are expected to weigh on prices, especially as global buyers become more aware of increasing milk production. “We anticipate more downside risks in the second half of 2025,” Ledman added.

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A Third Chinese National Arrested for Biological Material Smuggling

Another Chinese national has tried to smuggle biological materials into the U.S. A Farm Journal report says the materials were related to roundworms and intended for studying at a University of Michigan laboratory. This is the third Chinese national charged by the U.S. federal government in a week. A criminal complaint from the U.S. Attorney’s Office in Eastern Michigan, says Chengxuan (CHENG-Zhu-wan) Han is charged with smuggling goods into the U.S. and making false statements. “The alleged smuggling of biological materials by this Chinese national from a science and technology university in Wuhan, China, intended for use at a University of Michigan laboratory, is part of an alarming pattern that threatens our security,” said U.S. Attorney Jerome Gorgon, Jr. “The American taxpayer should not be underwriting a PRC-based smuggling operation at one of our crucial public institutions.” During an interview with the FBI, Han admitted the packages contained biological materials.

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Livestock Groups Applaud Reconciliation Bill for Animal Health Priorities

National Pork Producers Council President Duane Stateler applauded the inclusion of several NPPC animal health priorities in the Senate Ag Committee’s reconciliation package. “America’s 60,000-plus pork producers thank Chairman Boozman (BOZE-man) for fighting to include vital animal health priorities in the reconciliation legislation,” said Stateler. The priorities included funding for the National Animal Vaccine and Veterinary Countermeasures Bank. The National Cattlemen’s Beef Association also announced support for cattle health measures in the legislation. “A successful farm or ranch starts with healthy cattle, and as cattle producers face the increasing risk of a foreign animal disease outbreak, the need for robust cattle health provisions is even more crucial,” said NCBA Executive Director of Government Affairs Tanner Beymer. The legislation advances support for the National Animal Disease Preparedness and Response Program and the National Animal Health Laboratory Network. “We’re urging the Senate to quickly pass these provisions so they can become law,” Beymer added. 

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Klobuchar Reacts to Proposed SNAP Cuts

Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Ag Committee, reacted to the billions in cuts to the SNAP program proposed by Senate Republicans. “Republican proposed cuts to the Supplemental Nutrition Assistance Program continue to be devastating to families in need, push a major financial burden onto states, and cause farmers and independent grocers who already operate on thin margins to lose billions in revenue,” Klobuchar said. “SNAP serves 16 million kids, eight million seniors, four million people with disabilities, and more than one million veterans.” She also said while some changes were made to the food assistance cuts, the bill continues to include an unprecedented cost shift, forcing tens of billions of SNAP costs onto state governments for the first time. “Over the next decade, cuts to SNAP will also cost farmers tens of billions in revenue because Americans won’t be able to buy their products,” Klobuchar added.

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Iowa Corn Growers Applaud Governor Reynolds’ Veto

Iowa Governor Kim Reynolds vetoed an anti-pipeline bill, which the Iowa Corn Growers say will preserve Iowa’s right to pursue carbon capture and sequestration technology. “The Governor’s decision is a win for Iowa’s corn farmers, ethanol industry, and economy,’ the ICGA said in a statement. “Iowa is the world’s leader in corn and ethanol production, and now there’s an opportunity to increase demand for ultra-low carbon fuels, a market that Iowa deserves the ability to pursue.” The Corn Growers also said participation in CCS projects will allow Iowa to capitalize on exciting new ethanol market opportunities like Sustainable Aviation Fuels. “Because of decreased profit margins, Iowa’s corn growers need expanded market growth and access to continue raising corn profitably, allowing them to continue to grow Iowa’s agricultural industry and economy,” the Corn Growers added. “We appreciate the Governor’s decision to continue championing Iowa agriculture and creating new pathways for farmer success.” 

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Not Much Change to Corn and Soybeans in the June WASDE

The latest World Ag Supply and Demand Estimates report for June says the 2025-2026 U.S. corn outlook didn’t change much from last month. The numbers did show lower beginning and ending stocks, while corn area and yield forecasts were unchanged. USDA will release its survey-based Acreage Report on June 30. The season-average farm price received by producers is unchanged at $4.20 per bushel. U.S. soybean supply, use, and price projections are unchanged this month. The U.S. season-average soybean price is forecast at $10.25 a bushel. The U.S. wheat outlook this month is for slightly larger supplies, unchanged domestic use, higher exports, and lower ending stocks. All wheat production is projected at 1.921 million bushels, up 115,000 from last month. The all-wheat yield forecast is virtually unchanged at 51.6 bushels an acre. The projected 2025-2026 season average farm price is 10 cents higher at $5.40 on the reduced ending stocks. 

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