National Ag News for June 26, 2025                                                                              

Study on New Port Fee Policy Raises Ag Export Costs

A new report estimates that the recently finalized U.S. port fees on Chinese-operated and Chinese-built vessels could increase shipping costs for American agricultural exporters by up to $6.2 billion annually by 2028. The policy was issued by the U.S. Trade Representative’s Office in April and imposes phased-in fees on foreign vessels connected to Chinese ownership or construction. In the first year of implementation, the policy is expected to increase total shipping costs by an estimated $2.3 billion. By 2028, when the full fee schedule is phased in, shipping costs are projected to reach $6.2 billion. Corn, soybean, and wheat shipments will be the most affected, with estimated costs rising by five to seven cents a bushel, depending on the crop and route. The final policy incorporates several modifications from the original February 2025 proposal, including an extended implementation timeline, lower per-ton fee rates, and vessel-type exemptions, which significantly reduced expected impacts.

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Summer Cookout Costs Nearly Unchanged from 2024

Families celebrating the Fourth of July holiday continue to find high prices at the grocery store, based on the 2025 American Farm Bureau Federation’s annual market basket survey. An Independence Day cookout for ten people will cost $70.92. That’s down only 30 cents from last year’s record-high cost. At $7.09 per person, that will be the second-highest cost since Farm Bureau began the survey in 2013. “Inflation and lower availability of some food items continue to keep prices stubbornly high for America’s families,” said Farm Bureau Associate Economist Samantha Ayoub (aye-OOB). The survey shows an increase in the cost of beef, potato salad, and canned pork and beans. There are drops in the cost of pork chops, chips, and hamburger buns. For example, the retail price for two pounds of ground beef rose 4.4 percent to $13.33. A three-pound package of pork chops fell 8.8 percent from last year to $14.13. 

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Brazil Farmers Harvesting a Large Second-Corn Crop

Brazil’s farmers will produce a record 123.3 million metric tons of second-crop corn. Those numbers are from agribusiness consultancy Agroconsult after finishing a survey of fields in key corn-producing regions. Reuters says Brazil’s farmers are harvesting the second corn crop now, which will account for 80 percent of national output this year. It’s mainly exported in the second half of the year, competing with U.S. corn suppliers in global markets. Good weather, especially abundant rains through April and May, helped yields in many key growing states. The consultancy said the new forecast represents an increase of 10.4 million tons over a May estimate by Agroconsult. It is 20.2 million tons above last season’s output. In Mato Grosso (MAH-toe GRAHS-so), Brazil’s biggest farm state, the average yield was up almost 12 percent from the previous year. ***********************************************************************************
Gas Prices Going Up

For the second straight week, the nation’s average price of gasoline has increased, rising 9.7 cents compared to last week, and stands at $3.18 per gallon. The national average is unchanged from a month ago and is 23.3 cents per gallon lower than a year ago. “With Israel and Iran trading attacks, oil prices have continued to climb,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “Few pumps have been immune, with nearly all states seeing gas prices rise over the past week.” He also said average diesel prices recorded their largest weekly jump since August 2023. After the U.S. launched attacks on Iran, DeHaan expects oil prices to continue trending higher. “That said, I don’t expect the apocalyptic spikes being circulated by some so-called influencers on social media, many of which are wildly inaccurate,” DeHaan said. “For now, drivers should expect a continued steady climb in prices.”

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Global Cotton Stocks Set to Decline

The USDA’s cotton projections for 2025-2026 indicate a decrease in world cotton ending stocks to 76.8 million bales, slightly below the previous marketing year but the third-highest since 2015-2016. Global cotton production is estimated at 117 million bales, 2.5 percent or 2.9 million bales below last year. Mill use is projected to increase by one percent to 117.8 million bales in 2025-2026, the highest in five years. Global cotton trade for 2025-2026 is projected to increase by five percent and help support the increase in mill demand expectations. U.S. cotton production for 2025-2026 was lowered by 500,000 bales this month to 14 million bales, nearly three percent below the previous marketing year but approximately 2.5 percent above the 2023-2025 marketing year averages. Upland production is estimated at 13.6 million bales, compared with 13.9 million last year. The extra-long staple crop is estimated at 370,000 bales, compared with 471,000 bales last year. 

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Butter Institute Seeks Action against “Dairy-Free” Butter

In a strongly-worded complaint to the Food and Drug Administration, America’s butter marketers asked the agency to take action against Country Crock’s “dairy-free salted butter.” The marketers assert that the product’s label violates federal regulations. The plant-based spread’s front label, in bold letters, describes itself as a form of butter, although federal standards of identity define butter as a product made from milk. In reality, and as admitted in the much smaller font on the package label, the Country Crock products describe themselves as 79 percent plant-based oil spreads. “Country Crock is attempting to leverage the premium perception of real dairy butter maintained by consumers,” said Chris Galen, executive director of the American Butter Institute. “The manufacturer is clearly trying to confuse the consumers about what this product is: an ultra-processed seed oil concoction. “This product may indeed be a crock from the country, but it’s not butter,” Galen added. 

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