December 16, 2025

Mexico Agrees to Meet Water Treaty Obligations

The U.S. and Mexico reached an understanding on meeting the current water obligations of American farmers and ranchers and for Mexico to repay the water deficit in Texas as part of the 1944 Water Treaty. This agreement extends to the current cycle and the previous cycle’s water deficit. “Farmers from the southern U.S. are reeling from the uncertainty caused by a lack of water,” said Ag Secretary Brooke Rollins. “I thank Mexico for their willingness to abide by the treaty and return to good standing with their past obligations.” She also said Mexico has delivered more water in the last year than in the previous four years combined. With the understanding, Mexico has agreed to release 202,000 acre-feet of water to the U.S., with deliveries expected to begin this week. Timely repayment of the outstanding deficit from the previous water cycle is also understood by Mexico. 

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HPAI Found in Wisconsin Dairy Cattle

The USDA’s Animal and Plant Health Inspection Service confirmed that it detected highly pathogenic avian influenza in a dairy cattle herd in Wisconsin. The confirmation marks the first known case of HPAI in cattle in Wisconsin. APHIS is working with the Wisconsin Agriculture Department to conduct additional on-farm investigations, testing, and epidemiological data collection to better understand the detection and prevent further disease spread. The detection doesn’t change USDA’s eradication strategy, with the agency pointing out that biosecurity is still the key to mitigating the risk of disease introduction or spread between farms. The detection doesn’t pose a risk to consumer health or affect the safety of the commercial milk supply. The Food and Drug Administration says it remains confident that pasteurization inactivates the virus and that the commercial, pasteurized milk supply is safe. The CDC said HPAI viruses circulating in birds and dairy cattle pose a low risk to the public.

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CA Man Convicted in $5 Million Canola Theft

Shawn Sawa, formerly of Clovis, California, was sentenced to 18 months in prison for his role in a fraud scheme that stole millions of dollars’ worth of canola. U.S. Attorney Eric Grant announced that the canola, stolen from international food processors, was intended to be used for livestock feed. A Department of Justice news release said that from 2015 to 2017, Sawa and co-defendant Richard Best stole $4.8 million worth of canola from international food processors, and then sold the grain for a windfall. The two carried out the scheme through Best’s now-defunct train-to-truck transloading company, Richard Best Transfer, Inc. A transloading company transfers commodities from one mode of transportation to another mode. The victim food processors sent hundreds of thousands of tons of their canola to RBT for delivery to their customers. Best pleaded guilty in October and faces a maximum statutory penalty of 20 years and a fine of $250,000.

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2026 Biofuel Quotas Likely Not Coming This Year

The Trump administration isn’t likely to finalize the 2026 biofuel-blending quotas before the end of 2025. Three sources close to the situation told Reuters that this will only extend uncertainty over a policy closely watched by rival oil and farm sectors. The Environmental Protection Agency has scheduled meetings with industry stakeholders on the quota rule in early 2026, which is a sign the final rule won’t be announced until next year. The EPA declined to give a specific timeframe on when a final rule could be reached, noting that it’s still reviewing public comments on the volume requirements. A delay in finalizing the mandate is troublesome because fuel makers, farmers, and commodity traders use them to lock in supply contracts, hedge the volatile crop and energy markets, and justify investments in new production capacity. Earlier this year, the EPA proposed raising total renewable fuel requirements for 2026 and 2027.

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JBS Closing California Plant

JBS announced plans to close one of its facilities outside of Los Angeles, California. Cattle Range Dot Com said the plant prepares beef for sale in U.S. grocery stores. The world’s largest meat company announced the closure late last week. JBS is closing down its Swift Beef Company facility in Riverside, California, on February 2, which will eliminate 374 jobs. This particular plant doesn’t actually slaughter cattle but instead processes beef for sale in grocers’ meat cases, which means the facility isn’t shutting down due to low cattle supplies driving up the costs of paying for cattle ready for slaughter. Bloomberg said the USDA lowered its estimates for cattle prices through 2026, citing reduced slaughter plant capacity into early next year. Tyson, the country’s biggest meatpacker, said it will end operations at a beef plant in Nebraska and cut operations at a plant in Texas down to a single shift. 

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Tractor and Combine Sales Drop in November

According to the Association of Equipment Manufacturers, the total sales of agricultural tractors in the U.S. dropped almost 20 percent, while combine sales fell 35 percent compared to November 2024. Canadian sales of combines increased 25 percent in November compared to the same time last year, while sales of agricultural tractors dropped seven percent in the same time frame. “This month’s numbers reflect the continued economic pressure farmers have been navigating for several months,” said Association of Equipment Manufacturers Senior Vice President Curt Blades. “While we’re seeing a short-term slowdown in sales, equipment manufacturers remain focused on supporting farmers with the tools and technologies that deliver efficiency and long-term value.” He also said as the agricultural economy moves into 2026, AEM will continue watching market conditions closely and remains confident in the industry’s underlying strength. 

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