July 24, 2025
Ag Exports Contribute Billions to the U.S. Economy
America’s farm and food product exports create value and generate economic activity within and outside of the agricultural sector. Increased exports of agricultural products lead to higher demand for transportation services, packaging materials, or financial services across the supply chain, with additional employment services and economic activities required for exports. In 2023, the value of U.S. agricultural exports, comprising both commodities and food products, hit $175.5 billion. In turn, these exports generated an additional $186.9 billion in economic activity. Exports of bulk, unprocessed commodities like soybeans and corn, valued at $74.2 billion, generated an additional $66.2 billion in economic activity during 2023. Including the value of the exports themselves, U.S. agricultural exports generated a total economic output of $362.4 billion in 2023. That means every one dollar of ag product exports generated a total of $2.06 of domestic economic activity, on average. Non-bulk exports generated $120.7 billion in additional economic activity.
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House Ag Committee Hears About Prop 12 Impact on U.S. Pork
Pat Hord, an Ohio pork producer and vice president of the National Pork Producers Council, and Holly Cook, NPPC Economist, testified before the House Ag Committee on the implications of California’s Prop 12 for farmers and food prices. On behalf of the industry, they called for Congress to support Committee Chair GT Thompson’s efforts to address the severe threat to the U.S. pork industry, including the spiderweb of state regulations it invites. Hord said, “Despite producing Proposition 12-compliant pork, I’m here to say Prop 12 and an unmitigated regulatory patchwork threaten our farm.” Prop. 12, a California ballot initiative, bans the sale of pork that doesn’t comply with the state’s prescriptive and arbitrary production standards. They explained how widespread adoption of measures like Prop. 12 would lead to even more consumers paying higher prices for pork. California prices have already risen 16 percent for bacon and 41 percent for pork loins.
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White House Says U.S. and Japan Have Reached a Trade Deal
President Donald Trump said that the U.S. and Japan reached a deal in which the U.S. reduces its reciprocal tariff rate in exchange for increased market access for rice and other agricultural products.”We just completed a massive trade deal with Japan,” Trump wrote on Truth Social. “Japan will open its country to trade on items like cars, trucks, rice, and other agricultural products.” The president also said Japan will invest $550 billion in the U.S. “at my discretion.” He added that the U.S. would receive 90 percent of any profits, although he didn’t provide further details. The White House didn’t respond to requests for comment, and neither did the Japanese embassy. Agriculture Dot Com says Japan has previously stressed that its government would not sacrifice the country’s agricultural sector to secure a deal with the U.S. Trump had initially threatened Japan with a 24 percent tariff in April.
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Groups Applaud Framework for Indonesia-U.S. Trade Agreement
U.S. Wheat Associates welcomed the announcement of an agreed-upon framework between the U.S. government and the Republic of Indonesia for negotiating an Agreement on Reciprocal Trade(Link is external). The proposed trade deal is expected to directly benefit U.S. wheat farmers through the removal of Indonesian tariffs on 99 percent of U.S. products, a reduction in non-tariff barriers, and new purchase commitments for U.S. ag products, including wheat. “We are excited and grateful for this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry,” said USW president Mike Spier. Ryan LeGrand, president of the U.S. Grains Council, says his group commends the administration on the historic trade deal with Indonesia. “It will enhance trade between both countries and places a zero tariff on the products that the Council represents,” LeGrand said. “In 2023-2024, Indonesia was the fourth-largest importer of DDGS with solubles.”
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NCGA and Ag Data Transparent Announce New Carbon Project
The National Corn Growers Association and Ag Data Transparent announced a new partnership to help bring clarity to farmers interested in carbon market contracts. “The rapid expansion of carbon programs and solution providers in agriculture presents immense opportunities but also significant risks,” said Sean Arians, NCGA Vice President of Sustainable Production and Value Chain Engagement. Without a neutral, transparent informational foundation, farmers risk unforeseen obligations and uncertain returns. Recognizing this urgent need, NCGA is launching this initiative in partnership with ADT while also working to secure additional funding from industry organizations and businesses. The first phase of the project will launch this Fall. Agricultural stakeholders who support transparency in the carbon marketplace are encouraged to participate and contribute to the project. Wide engagement will improve the initiative’s ability to provide transparent certification and propel the emerging market while limiting risks for farmers. For information, email Todd Janzen at janzen@aglaw.us.
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June Milk Production Up 3.4 Percent
Milk production in the 24 major milk-producing states in June totaled 18.5 billion pounds, up 3.4 percent from June 2024. May revised production, at 19.3 billion pounds, was up 2.4 percent from May 2024. The May revision represented an increase of 136 million pounds or 0.7 percent from last month’s preliminary production estimate. Production per cow in the 24 major States averaged 2,045 pounds for June, 33 pounds above June 2024. The number of milk cows in those states was 9.03 million head, 151,000 head more than June 2024, and 3,000 head more than May 2025. Milk production in the U.S. during the April-June quarter totaled 58.7 billion pounds, up 2.4 percent from the April-June quarter of 2024. The number of milk cows in the U.S. during the quarter averaged 9.46 million head, 56,000 head more than the January-March quarter and 127,000 head more than the same period last year.
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