July 31, 2025
Railroads to Merge for $85 Billion
Union Pacific will buy smaller rival Norfolk Southern in a deal worth $85 billion. U.P. says this would create the first coast-to-coast freight rail operator in the U.S. Reuters said, if approved, the deal would be the largest buyout in the sector’s history. It would combine Union Pacific’s tracks in the western two-thirds of the U.S. with Norfolk’s 19,500-mile network covering 22 eastern states. The two railroads would have a combined enterprise value of $250 billion and would unlock about $2.75 billion in annualized synergies. The deal will likely face lengthy regulatory scrutiny amid union concerns over potential rate increases, service disruptions, and job losses. The National Grain and Feed Association says it will undertake an extensive evaluation of the proposed merger to “better understand” the implications for the industry. Mike Steenhoek of the Soy Transportation Coalition says the deal will create winners and losers in the shipping industry.
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Klobuchar Talks About Proposed USDA Reorganization
Senator Amy Klobuchar (D-MN), Ranking Member on the Senate Ag Committee, spoke during a Committee hearing on the proposed reorganization of the USDA. The hearing was scheduled on short notice because Klobuchar said, “The administration put together a half-baked plan with no notice and without consulting agricultural leaders.” During her statement, Klobuchar said she supports efforts to make USDA work better, but didn’t think that getting rid of 15,000 employees by firings or early buyouts was good for agriculture. “We have a half-baked agenda that will almost certainly result in worse services for farmers and families in rural communities,” Klobuchar said. “We already have 90 percent of USDA employees out in the field, but you guys plan on breaking down the other ten percent and sending them to different hubs.” She’s also extremely concerned that the reorganization proposal would have a negative impact on USDA’s research.
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NACD Holds Summer Conservation Forum in Wisconsin
The National Association of Conservation Districts held its 2025 Summer Conservation Forum and Tours in Milwaukee, Wisconsin, this week. NACD hosted the event in partnership with Wisconsin Land + Water, and this summer’s meeting gathered conservation leaders from across the country. The event spotlighted numerous natural resources conservation efforts in Wisconsin. “Wisconsin is a leader in farmer-driven conservation and water quality initiatives,” said NACD President Gary Blair. “This state shines with strong local and state collaboration and provides us with great examples of partnerships to grow the future of voluntary, locally led conservation.” During the meeting, attendees heard from NRCS Chief Aubrey Bettencourt about strengthening service to the nation’s agricultural producers. “This is an opportunity to re-imagine NRCS, and we’re flipping the business model for what we need to be for the next 90 years,” Bettencourt said. “Join us in imagining that future and creating it for ourselves.”
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Applications Open for Trade Mission to Mexico
The USDA’s Foreign Agricultural Service is now accepting applications for its upcoming agribusiness trade mission to Mexico City, Mexico, scheduled for November 3-6. U.S. exporters need to get their applications in this week, by Thursday, July 31. “Strengthening export opportunities for American farmers, ranchers, and agribusinesses is a top priority for USDA,” said Michelle Bekkering, Deputy Undersecretary for Trade and Foreign Agricultural Affairs. “This trade mission will connect U.S. producers with key buyers in Mexico, which was the largest export market for U.S. agricultural products in 2024.” Sales totaled more than $30 billion, supporting approximately 190,000 U.S. jobs. Agricultural trade between the U.S. and Mexico under the U.S.-Mexico-Canada Agreement reached almost $79 billion in 2024. Growing U.S. exports to Mexico are supported by factors such as rising disposable income among Mexico’s upper middle class, familiarity with U.S. products and food trends, and a strong demand for high-quality agricultural goods.
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TSCRA Launches New World Screwworm Website
The Screwworm Coalition of Texas, a coalition of 13 Texas landowner, livestock, equine, and wildlife groups, launched a new website to deliver reliable information about the New World screwworm. The site compiles information from lead agencies, including the USDA’s Animal and Plant Health Inspection Service, the Texas Animal Health Commission, and the Texas Parks and Wildlife Department. The new online resource offers the public and media easy access to factual information. It also serves as a platform to dispel rumors and correct misinformation regarding the status, planning, preparedness, prevention, and response to New World screwworm in Texas. Site visitors can learn about the sterile insect technique, the only proven method of eradicating the parasite. There are also details about sterile fly production in Panama and progress toward developing new sterile fly facilities. More information is available at screwwormtx.org, including the newest updates, resources, and educational materials on the New World screwworm.
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July Hog Slaughter Lower Than Last Year
Hog slaughter during the four weeks ending on July 26 was 3.7 percent lower than a year ago. That was far lower than the expectations based on the July hog survey. USDA has also lowered some of its initial slaughter estimates. In the near term, pork supplies will remain limited, impacting primarily processing items as buyers need to run consistent production. Ham, trim, and belly prices continue to be well-supported. Retail fresh pork sales have been slow despite record beef prices. Loin values are near year-ago levels, while pork butt and spare rib prices have started to seasonally decline and should see more downside price pressure as slaughter moves higher in the Fall. Ham prices continue to trade very firm, given the shortfall in production. Belly inventories were particularly tight, falling to 44 million pounds in late June. Tariff uncertainty with Mexico has some buyers on the sidelines.
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