Check our advice monitor on ProFarmer.com for updates to our marketing plan.
Trump announces reciprocal tariffs, aiming to reshape trade policy... President Donald Trump signed an executive order directing his administration to impose reciprocal tariffs on foreign countries with high tariffs and non-tariff barriers on U.S. exports. These customized levies, expected to be finalized by April, are designed to rebalance trade relationships and target unfair practices, including subsidies, regulations and exchange rate manipulation. The executive order says: “Within 180 days of the date of this memorandum, the Director of the Office of Management and Budget shall assess all fiscal impacts on the Federal Government and the impacts of any information collection requests on the public, and shall deliver an assessment in writing to the President.”
The proposed tariffs will be calculated on a country-by-country basis and could apply broadly to industries such as automobiles, semiconductors and pharmaceuticals. Trump cited the European Union’s value-added tax (VAT) and restrictive regulations as examples of unfair trade practices, along with Japan and South Korea, which he claims have long taken advantage of the United States.
Of note: The Trump Administration will first look at the countries with the highest tariffs on U.S. goods. An official briefing reporters on the matter said the tariffs could come into effect in weeks or months.
“For many years the United States has been treated unfairly by trading partners, both friend and foe,” according to a memorandum Trump signed. “This lack of reciprocity is one source of our country’s large and persistent annual trade deficits in goods. I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump said in announcing the new tariffs. “In almost all cases, they’re charging us vastly more than we charge them, but those days are over.”
Trump also said tariffs on cars, semiconductors and pharmaceuticals in addition to the reciprocal tariffs will come “shortly.”
The reciprocal tariff plan marks a sharp departure from the “most favored nation” principle that has guided global trade policy since the post-World War II era. Under this system, all trading partners receive equal treatment unless covered by a specific trade agreement. Trump’s new approach aims to align U.S. tariff policies with those of its trading partners, effectively abandoning this long-standing norm.
Trump’s proposal for reciprocal tariffs will likely spark reactions from some U.S. farm groups and lawmakers representing agricultural states, many of whom fear negative impacts on rural economies and American farmers. Many farmers fear that countries like Japan, South Korea, Mexico and the EU will retaliate by targeting U.S. corn, soybeans, pork, dairy and beef exports. Some farm groups are urging the White House to exempt agricultural products from reciprocal tariffs to avoid retaliation.
Click here to view our special report on this issue.
La Niña expected to dissipate during spring... La Niña conditions persisted over the past month and a weak event is expected to continue into spring, according to the U.S. Climate Prediction Center. It puts 66% odds of neutral conditions developing during the March-May timeframe and greater than 50% chances of ENSO-neutral persisting through the U.S. growing season.
HPAI crisis spurs regional emergency and hours-of-service waivers for chicken transport... The Federal Motor Carrier Safety Administration (FMCSA) has declared a regional emergency due to the spread of highly pathogenic avian influenza (HPAI), which has led to significant losses in chicken flocks and caused an egg supply shortage. In response, FMCSA has waived maximum driving time regulations for commercial motor vehicle operators transporting live chickens from affected areas to unaffected regions. This emergency declaration follows similar actions taken by the governors of California, Iowa and Louisiana.
Key requirements for carriers and drivers:
- Drivers must not drive more than 16 hours within a 24-hour period.
- All driving must cease by midnight each day.
- A minimum 6-hour sleeper berth break is required before resuming driving.
- Drivers must use and maintain paper records of duty status (RODS) for six months.
- Carriers must also ensure they comply with all U.S. Department of Agriculture and state regulations, securing necessary approvals and documentation for transport.
This emergency declaration remains in effect until March 10, 2025, or until the crisis is resolved.
Lawmakers reintroduce year-round E15 legislation... Sens. Deb Fischer (R-Neb.) and Tammy Duckworth (D-Ill.), along with Reps. Adrian Smith (R-Neb.) and Angie Craig (D-Minn.), Sharice Davids (D-Kan.), Dusty Johnson (R-S.D.), Nikki Budzinski (D-Ill.), and Mariannette Miller-Meeks (R-Iowa) reintroduced a bill for year-round E15 sales. The legislation, called the Nationwide Consumer and Fuel Retailer Choice Act, would remove what the ag industry terms an obsolete policy that prevents the sale of E15 during the summer months.
The American Coalition for Ethanol (ACE) welcomed the reintroduction of the bipartisan, bicameral bill, emphasizing the growing support for year-round E15 in Congress. The National Corn Growers Association (NCGA) also applauded the development.
GAO: Biden’s USDA violated federal budget laws in SNAP fund allocation... A Government Accountability Office (GAO) report uncovered serious issues with USDA’s management of the Supplemental Nutrition Assistance Program (SNAP) under the previous administration. The report concluded that USDA violated federal budget statutes in its handling of SNAP funds. USDA’s practices for recording SNAP obligations were found to be in violation of the recording statute. The agency failed to properly record obligations when appropriations were enacted and available, instead recording them either daily or prematurely for future fiscal years. USDA violated the bona fide needs statute by using its fiscal year (FY) 2023 one-year SNAP appropriation to pay for FY 2024 SNAP benefits.
GAO concluded that if USDA lacks sufficient funds in the relevant appropriations to cover the improperly allocated benefits, it must report an Antideficiency Act violation. House Ag Committee Chair Glenn “GT” Thompson characterized USDA’s actions under Secretary Tom Vilsack as “reckless accounting gimmicks” and an “abuse of taxpayer resources.” Thompson promised to “ensure accountability” and “put an end to these partisan budget games,” indicating potential congressional action.
Trump and Musk’s target: USAID and its future at risk... President Donald Trump’s administration has paused most foreign aid (humanitarian food aid is still flowing), with Department of Government Efficiency head Elon Musk labeling USAID as a wasteful entity that should be dismantled. Dozens of senior officials have been placed on administrative leave, and USAID employees were locked out of their Washington headquarters.
USAID, founded in 1961, is America’s key agency for administering humanitarian and development assistance. With a budget of about $43 billion in 2023, it operates globally, focusing on disaster relief, food security and promoting economic development in over 130 countries. Its missions are strategic, aiming to prevent humanitarian crises from escalating into security risks for the U.S.
Trump and his allies view foreign aid as an expensive endeavor misaligned with U.S. interests. Secretary of State Marco Rubio has floated the idea of folding parts of USAID into the State Department or eliminating the agency entirely. Critics claim USAID is a “rogue” agency mismanaging funds, with Musk’s team investigating alleged misuse.
Freezing U.S. aid could create severe humanitarian consequences, according to Doctors Without Borders, affecting millions in conflict zones and impoverished nations. With the U.S. contributing nearly 30% of global official development assistance, a reduction would create a vacuum that China could exploit, expanding its influence in the developing world.
While other democracies like Canada and the UK have merged their development agencies into foreign ministries, experts argue that a U.S. president cannot unilaterally shut down USAID. Congressional approval is required, and despite Republican majorities, Democrats can use the filibuster to block significant structural changes. Observers warn that sidelining USAID risks weakening U.S. soft power at a time when global competition is intensifying.
Senate confirms Rollins, RFK Jr. to Cabinet positions... The Senate voted overwhelmingly to confirm Brooke Rollins as USDA secretary.The vote was 72-28. The Senate also voted 52-48 to confirm Robert F. Kennedy Jr. to lead the Health and Human Services Department. Kennedy won over key GOP holdouts who were concerned about his vaccine views. Sen. Mitch McConnell (R-Ky.) joined all 47 Democrats in voting against Kennedy’s nomination.
Brazil backs off BRICS currency, focuses on cutting dollar dependence... Brazil’s BRICS presidency this year will not push for a shared currency but will focus on easing international payments and reducing reliance on the U.S. dollar in global trade, according to four government officials cited by Reuters. While Brazil’s proposed agenda could raise concerns in Washington, officials emphasized it is not directed at replacing the dollar. Instead, Brazil aims to reform BRICS financial systems, exploring blockchain technology and linking payment systems to lower transaction costs.
President Donald Trump recently warned BRICS against challenging the dollar’s dominance, hinting at potential tariffs on countries that try.
Despite previous advocacy from Brazilian President Luiz Inácio Lula da Silva for a BRICS currency, officials clarified that the idea has never entered technical discussions. Lula has since moderated his stance, defending BRICS nations’ right to explore alternatives without committing to a new currency.
Brazil’s fast-growing instant payments system, Pix, is central to its financial innovation. Brazil also operates a Local Currency Payment System (SML), which allows transactions to be settled in local currencies rather than the dollar, but adoption has been slow due to settlement delays.
The July BRICS summit will revisit these proposals, aiming to build a more connected and efficient payment network.
Trump administration doubles down on ‘energy dominance’ with key Interior appointments... The Trump administration has appointed Kathleen Sgamma, a prominent advocate for oil and gas development in Western states, to lead the Interior Department’s Bureau of Land Management (BLM), which oversees nearly 250 million acres of public land. Sgamma, president of the Western Energy Alliance, has been a vocal critic of efforts by previous administrations to prioritize conservation over energy expansion. As BLM director, Sgamma will manage federal leasing programs for oil, gas, mining, grazing, and renewable energy development. She is expected to ramp up quarterly oil and gas auctions and expand the acreage available for development, reversing Biden-era restrictions on leasing public lands. Oil production on federal land currently accounts for about 11% of U.S. output.
Additionally, the administration nominated Brian Nesvik, former director of Wyoming’s Game and Fish Department, to head the Fish and Wildlife Service. Nesvik has previously criticized the Biden administration’s refusal to delist species like the grizzly bear from the endangered species list.
Interior Secretary Doug Burgum recently rolled out new orders in line with Trump’s “energy dominance” agenda, aiming to boost domestic energy production and roll back regulations. Among the measures are efforts to revoke Biden-era Endangered Species Act rules and protections for migratory birds.
Conservation groups have strongly opposed the appointments. “Everyone who treasures the outdoors should oppose her (Sgamma’s) nomination,” said Taylor McKinnon of the Center for Biological Diversity.
Farm equipment prices drop... The Association of Equipment Manufacturers released the January 2025 Ag Tractor/Combine Sales report. The report showed:
- U.S. sales of Ag tractors dropped 15.8% compared to January 2024
- U.S. sales of combines fell 78.9% compared to January 2024
- Canadian sales of Ag tractors dropped 3.1% compared to January 2024
- Canadian sales of combines fell 82.9% compared to January 2024
NWS/NOAA to rename Gulf of Mexico as Gulf of America... The National Oceanic and Atmospheric Administration and its offices, including the National Hurricane Center and National Weather Service (NWS), will be changing the name of the Gulf of Mexico to the Gulf of America. All maps, nautical charts, websites and weather products will reflect the name change that is part of an executive order President Donald Trump signed focused on what the administration says is “restoring names that honor American greatness.” NWS spokesperson Susan Buchanan said, “Work is underway to update the naming convention as quickly as possible.”