August 31, 2026

Court Ruling Clouds Future of H-2A Wage Reforms, Raises Backpay Concerns

A federal court ruling has cast uncertainty over recent reforms to the H-2A agricultural guestworker program, while leaving current wage rates in place for now. On Aug. 25, a federal district court in California ruled that key provisions of a 2025 U.S. Department of Labor interim final rule revising the Adverse Effect Wage Rate, or AEWR, were unlawful because the agency failed to adequately justify several changes and bypassed portions of the public rulemaking process. The court challenged a new two-tier wage system, a housing-related wage adjustment, the use of Bureau of Labor Statistics data in wage calculations and a rule governing mixed-duty jobs. However, the judge declined to immediately vacate the rule, allowing current H-2A wage rates to remain in effect while the Labor Department develops a replacement methodology. The ruling also raises the possibility of future backpay obligations for employers if revised wage rates exceed current levels. The NC Chamber said growers should continue complying with existing rates while maintaining detailed payroll records as the case proceeds.

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Dairy Industry Shifts Focus to Protein as Global Demand Grows

U.S. dairy producers are stepping up efforts to increase the protein content of milk as changing market incentives and global demand reshape the industry, according to a new report from CoBank. The report says milk protein production began outpacing butterfat production in August 2025 after protein values surpassed butterfat values for the first time in several years. That shift has encouraged farmers to focus more heavily on boosting protein levels, which are critical for cheese production and increasingly valued in global dairy markets. While U.S. butterfat production has surged over the past decade, protein gains have been more modest. Industry analysts say that imbalance has created challenges for cheesemakers, who prefer a more balanced protein-to-fat ratio for optimal yields and product quality. The United States still trails major dairy exporters in the European Union and New Zealand in overall milk protein levels. However, U.S. producers increased protein production 7.4% between 2015 and 2025, with most of that growth occurring in the past five years. CoBank said continued gains will be gradual because protein improvements depend largely on genetics.

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Trump Moves to Expand Meat Processing Options for Farmers, Ranchers

President Donald Trump said Friday his administration is preparing legal action aimed at giving farmers and ranchers more freedom to process and sell meat, a move he says would increase competition in the highly concentrated meatpacking industry. The announcement comes after a presidential proclamation on August 26 that will allow an additional 300,000 metric tons of lean beef trimmings into the U.S. at reduced tariff rates beginning Sept. 1. Trump said legal documents were being prepared quickly, following comments earlier last week questioning federal restrictions on beef processing, according to Reuters. Agriculture Secretary Brooke Rollins said additional announcements are expected Monday, including efforts to expand interstate sales and support smaller processors. Four companies, Cargill, Tyson Foods, JBS USA, and National Beef Packing Co., control about 85% of U.S. meat processing. Federal law generally requires meat sold commercially across state lines to be processed under federal inspection. The Meat Institute warned that weakening inspection requirements could jeopardize food safety. USDA has previously expanded programs allowing qualifying state-inspected processors to participate in interstate commerce.

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Farm Groups Warn Expanded Refinery Waivers Could Hurt Biofuel Demand

U.S. farm and biofuel organizations are urging the Trump administration to reject a potential expansion of small refinery exemptions, warning the move could reduce demand for corn, soybean oil and renewable fuels. Reuters reports the administration is considering exemptions covering as many as 1.8 billion renewable fuel credits, nearly double earlier assumptions. Small refinery exemptions allow qualifying refineries to avoid some Renewable Fuel Standard blending requirements. The American Soybean Association estimates expanded exemptions could eliminate about 500 million gallons of biomass-based diesel demand and cost soybean farmers roughly $1 billion. A coalition including the Renewable Fuels Association, Growth Energy and National Farmers Union urged President Donald Trump to limit the waivers. Reuters reports administration officials are also considering increasing 2027 biofuel requirements by roughly 500 million gallons to compensate for demand lost through exemptions. 

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USDA Raises U.S. Agricultural Export Forecast

U.S. agricultural exports are expected to strengthen as USDA raised its trade forecast and projected a smaller agricultural trade deficit for fiscal 2026. USDA’s Economic Research Service and Foreign Agricultural Service forecast agricultural exports at $179.5 billion, up $3 billion from the agency’s May projection. Imports are forecast at $204.5 billion, down $1 billion from May. That would produce an agricultural trade deficit of about $25 billion, compared with the $29 billion deficit projected in May and the record $42.9 billion gap recorded in fiscal 2025. USDA released the updated outlook Thursday as agricultural exporters continue navigating shifting global demand and trade policies. The department also expects exports to increase further in fiscal 2027, forecasting approximately $186.5 billion in agricultural sales abroad. USDA publishes its agricultural trade outlook quarterly through the Economic Research Service and Foreign Agricultural Service, with forecasts covering major commodities and trading partners.

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Soybean Farmers Urged to Watch for Red Crown Rot as Disease Spreads

Soybean farmers seeing signs of sudden death syndrome are being urged to inspect plants closely for red crown rot, an emerging disease that can produce nearly identical leaf symptoms. Iowa State University Extension confirmed red crown rot last week in a southeastern Iowa field. The farmer previously believed the affected area had sudden death syndrome. Both diseases can cause yellowing between leaf veins and premature plant decline. However, red crown rot can be identified by reddish discoloration and tiny red fungal structures near the plant’s crown and soil line. Red crown rot, caused by a soilborne fungus, has expanded from the South into several Midwestern states. Yield losses of 25% to 30% have been documented in Louisiana and Mississippi. Iowa State officials recommend growers submit suspicious plants for laboratory testing because accurate identification can influence future disease-management decisions.

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