Check our advice monitor on ProFarmer.com for updates to our marketing plan.
Please fill out the Pro Farmer spring acreage survey... Please fill out our annual spring acreage survey with your current planting intentions for the 2025 growing season. Thank you to those that have completed the survey.
Trump Says Canada, Mexico tariffs to take effect next week, adds new China duty... President Donald Trump said 25% tariffs on Canada and Mexico are on track to go into place on March 4. The 25% tariffs apply to all Canadian and Mexican imports, except for energy products from Canada, which will be taxed at 10%.
Trump has been disappointed thus far with results of Canada and Mexico’s border security measures and sees most progress coming from the U.S. side, according to a White House official who spoke on condition of anonymity to Bloomberg. Trump said in a social media post that drugs from America’s neighbors are still entering “at very high and unacceptable levels.”
Trump will also impose an additional 10% tax on Chinese imports on top of the 10% duties he added earlier this month. The new tariffs on China are related to its role in fentanyl trade.
“There are ongoing discussions with the Chinese, Mexico and Canada,” a White House official told Reuters. “We’ve gotten a good handle on the migration issue, but there are still concerns on the other issue of fentanyl deaths.”
Sources told Reuters that Mexico will extradite to the U.S. drug lord Rafael Caro Quintero, who was convicted in 1985 of murdering a U.S. Drug Enforcement Administration agent but released in 2013 and returned to trafficking.
“The April Second Reciprocal Tariff date will remain in full force and effect,” Trump wrote on Thursday.
USDA widens outlook for already-record ag trade deficit... U.S. agricultural exports in fiscal year (FY) 2025 are projected at $170.5 billion, up $500 million from November, as higher grain and feed exports offset reductions to the oilseed outlook. Ag imports in FY 2025 are forecast at $219.5 billion, an increase of $4.0 billion from the November projection, largely driven by higher import values of horticultural products, sugar and tropical products. That would leave the U.S. with a record ag trade deficit of $49 billion, up from the previous projection of $45.5 billion and sharply higher than the $31.8 billion deficit in FY 2024.
Mexico is forecast to remain the largest market for U.S. ag exports at a record $30.2 billion, a $300-million increase from the previous outlook based on strong sales of dairy, wheat and other products during the first quarter. Exports to Canada are forecast down $800 million to $28.4 billion due to weaker-than-expected shipments to date. Exports to China were cut $1.3 billion to $22.0 billion, largely due to reduced prospects for U.S. soybeans, grains and cotton.
Booker demands accountability for stalled farm payments... Sen. Cory Booker (D-N.J.) called for USDA Secretary Brooke Rollins to be held accountable if delayed payments to farmers from the Trump administration aren’t immediately released. Speaking at a panel on the farm economy, Booker stressed that farmers who invested in conservation practices with promised government reimbursements are now in crisis. He supported Republican Sen. Jim Justice’s (D-W.Va.) concerns that without urgent action on issues like crop insurance, family farms could disappear, harming the U.S. food system. Sen. Tina Smith (D-Minn.) also warned that funding freezes and USDA staff cuts could worsen challenges like crop diseases and financial safety nets for farmers.
Senate Ag Committee examines farming challenges... The Senate Agriculture Committee held a hearing on Wednesday to discuss pressing issues in the agricultural economy.
Key challenges:
- Avian flu: Over 160 million birds and nearly 1,000 dairy herds affected.
- Labor shortages: The fresh produce industry struggles with a lack of reliable farm labor.
- Regulatory burdens: Concerns about overregulation impacting agriculture, especially in the fresh produce industry.
- Trade issues: Potential tariffs on Canada and Mexico could harm pork producers.
Policy recommendations:
- Farm bill: Support for a bipartisan farm bill.
- Labor reform: Urgent calls to fix the H-2A visa program.
- Research funding: Increased investment in crop mechanization.
- Crop Insurance: Enhanced risk management for produce growers.
Democrats face tough choice on funding deal... Republican leaders refuse to block President Donald Trump and Elon Musk from reclaiming previously approved funds, a key Democratic demand in spending negotiations. With a March 14 deadline looming, Democrats must choose between conceding or risking a government shutdown. While Democrats insist they don’t want a shutdown, they argue Republicans bear responsibility for funding the government. GOP needs bipartisan support to pass a spending plan, but House conservatives oppose temporary stopgap bills. If a shutdown drags on, public perception will be crucial.
“It looks as though it’s becoming inevitable at this point,” Johnson said of a long-term continuing resolution (CR) following a White House meeting with Trump and Senate Majority Leader John Thune (R-S.D.) on Wednesday. Johnson suggested Democrats’ demands “may be unconstitutional… “We have never dictated to the executive, so far as I know in the history of the United States, whom they can hire and how many people they can hire,” Johnson added. But Rep. Rosa DeLauro (Conn.), the ranking Democrat on the House Appropriations Committee, pushed back hard at Johnson. “I don’t know who the speaker talks to. He may be talking to himself in his office,” DeLauro said of a long-term CR. “Nowhere has that come up anyplace. The speaker ought to really check with the chairman of the committee.” When asked whether the bipartisan, bicameral funding talks are yielding any progress, DeLauro insisted they were. “We are getting closer. That’s what you need to know,” DeLauro said.
Trump administration orders federal layoff plans within two weeks... The Trump administration has directed federal agencies to submit large-scale reduction-in-force (RIF) plans by March 13, targeting the “maximum elimination” of non-statutory positions. Agencies must identify workforce cuts, consolidation strategies and efficiency measures, with an estimated 700,000 employees at risk. Some agencies, including the Office of Personnel Management and EPA, have already begun issuing layoff notices. Additional plans detailing agency restructuring and further reductions are due by April 14.
U.S. proposal could have big impacts on shipping costs... A U.S. proposal to impose multimillion-dollar fees on Chinese-operated, Chinese-built and Chinese-flagged ships could raise shipping costs for American retailers and manufacturers. While aimed at countering China’s dominance in global shipbuilding, experts say the measure is unlikely to boost U.S. shipbuilding. Instead, logistics specialists warn that carriers may shift fleets to minimize exposure, but with nearly 70% of new ship orders coming from Chinese yards, penalties could still drive up costs. Analysts estimate the fees could add $150 to $300 per container shipped from China to the U.S. West Coast.
House panel considers EV fee for highway fund... The House Transportation and Infrastructure Committee is weighing a $150 annual fee on electric vehicles to help fund the Highway Trust Fund. The measure, part of budget reconciliation efforts, could raise $20 billion to $40 billion over the next decade. The fund faces a projected $280 billion deficit by 2034, according to Politico.
Trump plans to revoke Chevron’s oil license to operate in Venezuela... Trump cited the electoral conditions in Venezuela and its failure to take back migrants from the U.S. as quickly as it promised as reasons for the action. Chevron said it was aware of Trump’s post and it was looking at the implications. Chevron exported around 240,000 barrels per day (bpd) from Venezuela, more than 25% of the country’s oil output. If the Venezuela state oil company PDVSA opts to export the supplies, sanctions would still prevent U.S. refiners from buying the crude.