California Ag Network

Category: News

  • Research Suggests Fresh Grapes are a Superfood

    A new article appearing in the current issue of the peer-reviewed Journal of Agriculture and Food Chemistry explores the concept of “superfoods” and makes a case that fresh grapes have earned what should be a prominent position in the superfood family. The author, leading resveratrol and cancer researcher John M. Pezzuto, Ph.D., D.Sc., Dean of the College of Pharmacy and Health Sciences at Western New England University, brings forth an array of evidence to support his perspective on this issue.

    As noted in the article, the term “superfood” is a common word without an official definition or established criteria. Mainstream superfoods are typically part of the Mediterranean Diet and generally rich in natural plant compounds that are beneficial to a person’s health. Pezzuto addresses the broader topic of superfoods in detail, then makes the scientific case for grapes, noting that fresh grapes are underplayed in this arena and often not included with mention of other similar foods, such as berries.

    Grapes are a natural source of over 1,600 compounds, including antioxidants and other polyphenols such as flavonoids, anthocyanidins, catechins, phenolic acids, resveratrol, and more. Polyphenols are credited with the health benefits of grapes, via antioxidant activity and influencing cellular processes. It is the whole grape and the unique matrix of these compounds within it that creates the biological effects, not a single component.

    Over sixty peer-reviewed studies have been published in the scientific literature on grapes and health. The role of grapes on cardiovascular health is well established, including promoting relaxation of blood vessels and healthy circulation, as well as modulating cholesterol levels. Clinical trials also show that grapes support brain health (help maintain healthy brain metabolism and beneficial impacts on cognition), skin health (enhanced resistance to UV radiation and DNA damage in skin cells), gut health (modulating the gut microbiome and increasing diversity in the gut), and eye health (retinal impact via increase in macular pigment optical density). Finally, in the realm of nutrigenomics – the study of foods on gene expression in the body – grape consumption has been shown to positively alter gene expression in relevant body systems. Pezzuto suggests that it is these activities at the genetic level that are likely the

    driving force behind the health benefits of grapes.

    “Dr. Pezzuto shows that based on the science, grapes are indeed a superfood, and should be recognized as such,” said Ian LeMay, president of the California Table Grape Commission, “and we are hopeful that using this nomenclature in association with grapes becomes common practice. Luckily, whether consumed for health or sheer enjoyment as a healthy snack, eating California grapes is a win for consumers.”

  • California Rice Fields Provide Vital Habitat for Snakes, Birds and Fish

    From ducks and cranes to giant garter snakes and salmon, flooded rice fields in California’s Central Valley offer important — often vital — habitat to many wildlife species. Yet uncertainties around crop markets, water and climate can prompt some growers to fallow rice fields or change their management practices.

    Will today’s rice acreage under current practices be enough to meet key species’ needs? If not, how much rice is needed? Where should it be planted? And what management practices offer the greatest benefit for species of concern?

    Scientists from the University of California, Davis, and Point Blue Conservation Science address these questions in a new report, “A Conservation Footprint for California Rice,” written for the California Rice Commission.

    “This was a highly interdisciplinary effort that I don’t think has been attempted at this scale for California rice or perhaps any other California agricultural crop working with wildlife,” said report co-lead John Eadie, a UC Davis professor emeritus in the Department of Wildlife, Fish and Conservation Biology who coordinated the 173-page effort among 13 authors. “I think this report provides the baseline for future work to come.”

    Core needs

    The authors reviewed the core needs of key species living among the region’s rice fields. These include giant garter snakes, wintering ducks, wintering and breeding shorebirds, black terns, sandhill cranes and native fish. They developed a mapping framework of the species’ habitat, as well as an estimate of the rice acreage, management practices and priority locations for rice that would most greatly benefit each wildlife group.

    Over the past decade, rice acreage has ranged from 250,000 to 540,000 acres in California. The report found that approximately 470,000 to 500,000 acres defines the desired conservation footprint of rice for the most species of concern. The needs for different species include:

    • 30,000 acres for native fish
    • 43,000 acres for sandhill cranes
    • 80,000 acres for giant garter snakes
    • 373,500 acres of winter-flooded rice and flooded fallow rice fields for non-breeding shorebirds
    • 473,000 acres of planted rice to restore populations of black terns and help support breeding shore birds
    • 500,000 acres for wintering ducks

    Winter flooding critical

    The authors emphasize that rice acreage alone — even as much as 500,000 acres — will not sustain these species unless water is available during the winter and during critical periods in the fall and spring. Winter flooding of the rice fields is especially critical for many of these species.

    Historically, seasonal wetlands shaped the Central Valley’s ecology and biodiversity. Beginning in the mid-1800s, these lands were largely drained for agriculture, flood control and development.

    “In the absence of natural wetlands, rice has become essential surrogate habitat for an incredible diversity of California wildlife,” said report co-editor Daniel Karp, a UC Davis professor in the Department of Wildlife, Fish and Conservation Biology. “In the face of climate-induced droughts and escalating water prices, providing rice farmers with the support needed to continue flooding their fields in winter is absolutely essential to safeguard this incredible conservation success story.”

    Priority locations and management solutions

    For nearly all wildlife groups, the Colusa and Sutter basins rank as the highest priority locations for rice habitat, given their proximity to wetlands and wildlife refuges. The Yolo Basin, Consumnes-Mokelumne Rivers region, and parts of the Delta are especially important for shorebirds and sandhill cranes. The Yolo and Sutter bypasses also represent critical areas for fish in flooded rice fields.

    The conservation value of these areas, however, largely depends upon how they’re managed. In addition to winter flooding and water availability, spatial location, managing vegetation, irrigation canals and post-harvest rice straw are just some of the considerations when managing rice for wildlife. The report outlines several strategies for each group.

    “This kind of interdisciplinary work is challenging but so important to effective conservation,” said report co-author Kristen Dybala, a principal ecologist at Point Blue Conservation Science. “When we work together, we can identify opportunities for the same acres to contribute to multiple goals at once.”

    The value of rice

    In addition to providing habitat for wildlife, rice production creates about $1 billion of added economic value and up to 7,500 jobs for California’s Sacramento Valley.

    “For decades now, our growers have seen firsthand how much their rice fields are used by wildlife all throughout the year,” said Tim Johnson, president and CEO of the California Rice Commission. “This Rice Footprint report by the University of California, Davis, details how these same fields that grow America’s sushi rice serve as the economic driver for our small communities and are also vital to our ecosystem in helping waterfowl, shorebirds, reptiles and fish thrive.”

    The report was funded primarily by the California Rice Commission through a grant to the UC Davis Center for Watershed Sciences and to Point Blue Conservation Science.

    Additional authors include Francisco Bellido-Leiva, Lee Burrows, Sean Fogenburg, Andrew Rypel and Brian Todd of the UC Davis Department of Wildlife, Fish and Conservation Biology; Robert Walsh of Point Blue Conservation Science; Bruce Linquist of UC Davis Plant Sciences; and Daniel Sumner and Jessica Xu from UC Davis Agricultural and Resource Economics. — By Kat Kerlin, UC Davis

  • National Dairy FARM, California Dairies, Inc., and Athian Join Forces to Monetize New Protocol for Reducing Dairy Emissions

    Thanks to a new partnership, dairy producers will soon have additional options for achieving and marketing verified greenhouse gas (GHG) reductions from on-farm sustainability practices. The National Milk Producers Federation (NMPF), California Dairies, Inc., and Athian announced today they have signed a memorandum of understanding (MOU) to develop a “carbon intensity” protocol supported by the FARM Environmental Stewardship (ES) Program, which seeks to define, quantify and verify how production efficiencies and new practice adoption contribute to positive environmental outcomes.

    “Facilitating supply chain partnerships is an important part of our mission,” said Kendra Tolley, chief product officer for Athian. “So, this MOU is a perfect demonstration of how our technology works to unite common interests around delivering new revenue opportunities for farmers and Scope 3 solutions for food companies.”

    Athian is a technology company, founded in 2022, to connect food company buyers looking to source Scope 3 reductions with sustainability minded farmers in their supply chain. They have committed through this MOU to work with their Scientific Advisory Board and accredited third party auditors to define, verify and monetize the on-farm practices that will be part of the protocol and then identify buyers for the resulting outcomes (i.e. insets) they generate.

    “This partnership supports dairy farmers interested in carbon claim opportunities by creating a streamlined process,” said Nicole Ayache, chief sustainability officer for NMPF, which administers the National Dairy FARM Program. “Farms who engage in a protocol that aligns with FARM ES methodology can use data already collected by its evaluation tool to pursue efficiencies benefiting the environment and their business.”

    As part of the MOU, FARM will contribute advice on quantification methodology as well as data collection and calculation support so farmers who are interested in generating carbon claims can receive additional value from the data they collect for FARM ES evaluations.

    California Dairies, Inc., as the largest member-owned milk marketing and processing cooperative in the state, will contribute to the MOU by supporting the development and implementation of this new protocol for the benefit of its farmer members.

    “CDI is guided by a promise to move as fast as technology and farmer economics allow,” said Darrin Monteiro, SVP, sustainability and member relations at CDI. “This MOU supports our promise, and we believe will play a pivotal role into the future of dairy sustainability.”

    The National Dairy Farmers Assuring Responsible Management (FARM) Program was created by NMPF with support from Dairy Management Inc. in 2009. Program participation is open to all U.S. dairy farmers, cooperatives, and processors. The FARM Environmental Stewardship (ES) Program, started in 2017, is a farm-level environmental assessment and customer assurance program that provides tools and resources for farmers to measure and improve their footprint. FARM ES leverages the Ruminant Farm Systems (RuFaS) model, a cutting-edge, whole-farm model simulating dairy farm production and environmental impact. Learn more at www.nationaldairyfarm.com.   For more, visit nationaldairyfarm.com.

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    Athian was founded in 2022 to help the livestock value chain capture and claim greenhouse gas (GHG) emission reductions by aggregating, verifying and certifying them, and then monetizing those reductions for farmers through the sale of the resulting insets. Athian’s platform is a secure software tool that simplifies data entry, upload, measurement and verification at scale, resulting in high-quality and credible GHG emission reductions that help satisfy Scope 3 goals and fund livestock producer sustainability measures. Athian provides a way for leading food brands to not only invest in climate and sustainability initiatives but also to mitigate enterprise risk by supporting the financial and environmental resilience of the farms in their supply chains. Athian is an Alloy Partners company based in Indianapolis, Ind. Learn more at www.athian.ag.

    California Dairies, Inc. is the largest member-owned milk marketing and processing cooperative in California, producing 40 percent of California’s milk. Co-owned by nearly 300 dairy producers who ship 17 billion pounds of Real California Milk annually, California Dairies, Inc. is a manufacturer of quality butter, fluid milk products, and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery and milk powder brand, DairyAmerica. California Dairies’ quality dairy products are available in all 50 United States and in more than 50 foreign countries. For additional information on California Dairies, Inc., visit www.californiadairies.com.

  • California Fresh Fruit Association Announces New Director of Government Relations

    The California Fresh Fruit Association (CFFA) is pleased to announce the hiring of Clayton Smith, as its new Director of Government Relations. He comes to the Association after serving as a Legislative Assistant in the United States House of Representatives.

    CFFA Board Chairwoman Melissa Frank of the Wonderful Company stated, “On behalf of CFFA’s leadership, we are thrilled to welcome Clayton to the Association. His experience working in Washington, DC, along with his background and education will be of great value to our membership.”

    Association President Daniel Hartwig added, “I am delighted to welcome Clayton to the CFFA team. He brings extensive professional experience working on issues such as water, labor and trade and I am confident he will be a strong voice for our membership in Sacramento and Washington, DC. I am confident that Clayton will work collaboratively in conjunction with our current staff to continue to serve the needs of the California fresh fruit industry.“

    Clayton is a graduate of Oklahoma State University, where he earned his bachelor’s degree in Agricultural Business. He served as an intern for CFFA the summer following his college graduation. Clayton’s first day at the Association was Monday, July 7.

  • Livestock Marketing Association Welcomes New Western Region Executive Officer

    Livestock Marketing Association, or LMA, is pleased to announce the appointment of Devin Murnin as region executive officer for the western U.S., following Forrest Mangan’s transition into the role of chief executive officer.

    Devin joins the association after a decade of service as a fieldman for the Western Livestock Journal, where he built strong relationships across the livestock industry and earned a reputation for professionalism, integrity and a deep commitment to the people he served.

    In his farewell column, Devin reflected on his time at the publication with gratitude and excitement for the road ahead, writing, “Though I will be serving in a different capacity as I transition to the Livestock Marketing Association, I look forward to continuing to be involved with the industry I truly am passionate about.”

    In his new role, Devin will support livestock auction markets and livestock marketing businesses across the 11 states of the association’s western region, providing guidance on regulatory issues, risk management and insurance coverage. His experience in livestock marketing, event coordination and industry outreach positions him well to serve members with energy and insight.

    Mike VanMaanen, association president said Mangan has been a tremendous asset and will continue to lead with vision and dedication, and he’s excited to add Murnin to the team.

    “Devin’s industry knowledge, communication skills and passion for livestock marketing make him a natural fit,” he said. “We know livestock marketers in the western states and beyond will benefit from his leadership and vision.”

    About the Livestock Marketing Association

    The Livestock Marketing Association, headquartered in Overland Park, Kansas, is North America’s leading, national trade association dedicated to serving its members in the open and competitive auction method of marketing livestock. Founded in 1947, LMA has more than 800 member businesses across the U.S. and Canada and remains invested in both the livestock and livestock marketing industries through member support, education programs, policy representation and communication efforts.

  • Golden State Farm Credit Awards Over $15,000 in Scholarships

    Golden State Farm Credit (GSFC) is proud to announce that it has awarded more than $15,000 in academic scholarships to outstanding high school seniors and college students pursuing degrees in agriculture. These scholarships reflect GSFC’s ongoing commitment to investing in the future of rural communities and supporting the next generation of agricultural leaders.

    Each year, GSFC recognizes and supports students who reside within its service area, including Butte, Glenn, Tehama, Shasta, Trinity, Fresno, Kings, and Tulare counties, or are children of GSFC customers. Recipients must demonstrate academic excellence, leadership potential, and a strong commitment to agriculture and can receive awards ranging from $500 to $1,500 to support their education at two-year and four-year colleges.

    “Our scholarship recipients are the future of agriculture,” said Rob Faris, President and CEO of Golden State Farm Credit. “By supporting their education, we’re not only investing in individual students but also in the long-term sustainability of agriculture in California.”

    The scholarship program is one of many ways GSFC works to strengthen rural economies and encourage youth to pursue careers in the agricultural industry. In addition to academic scholarships, GSFC supports youth in agriculture by purchasing livestock at county fairs, offering a summer internship program, and providing interest-free youth loan opportunities for junior livestock exhibitors. These initiatives underscore the cooperative’s mission to develop future ag leaders and strengthen rural communities.

    Applications for the scholarship program open annually in January. Interested applicants are encouraged to visit GSFC’s website to apply for the 2026 cycle.v

    For a full list of 2025 scholarship recipients, see the following:

    About GSFC:

    Golden State Farm Credit (GSFC) is a lending institution of the Farm Credit System with offices in Northern and Central California that service the counties of Butte, Glenn, Tehama, Shasta, Trinity, Fresno, Kings and Tulare. The GSFC administrative office is located at 3013 Ceres Avenue, Chico, CA 95973. The Farm Credit System (System) is a nationwide network of borrower-owned lending institutions that provides loans, leases, and related services to farmers, ranchers, rural homeowners, agribusiness, agricultural and rural utility cooperatives, and Young, Beginning and Small Farmers nationwide. Congress established the System in 1916 to provide a reliable source of credit for the nation’s farmers and ranchers. Today, the System provides more than one-third of the credit needed by those who live and work in rural America.

    For more information about Golden State Farm Credit, call (530) 895-8698 or visit us online at www.goldenstatefarmcredit.com.

  • California State Fair Honors Generations Announcing 2025 Ag Heritage Awards

    The California State Fair proudly recognizes the legacy, resilience, and contributions of multi-generational farming and ranching families as part of the 2025 Agricultural Heritage Awards. This year’s honorees include families whose operations span over a century of dedication to California’s rich agricultural landscape, with two families celebrating an extraordinary 175 years of continuous farming.

    The honorees were celebrated for their remarkable contributions and unwavering commitment to California agriculture at the Ag Heritage Awards Ceremony, Wednesday, July 16th at the Clubhouse at the Michelob Ultra Racetrack Grandstand. The Friends of the State Fair were also acknowledge their scholarship recipients.

    “These families represent the spirit and perseverance of California agriculture,” said Tom Martinez, CEO of the California Exposition & State Fair. “They’ve remained committed to working the land and feeding their communities and the world.”

    175-Year Honorees

    Locke Ranch Inc. – Lockeford, CA

    Founded in 1850 by Dr. Dean Jewett Locke, Locke Ranch is a testament to six generations of agricultural innovation and perseverance. From cattle and dairy to wine grapes and walnuts, the Locke family has continuously adapted to the times, overcoming floods, failed crops, and economic shifts. Today, the ranch spans 600 acres and remains under the stewardship of Chris and Elliot Locke, with a strong focus on sustainability and innovation.

    Hoskins/Pleasants Ranch – Pleasants Valley, CA

    Settled in 1850, the Hoskins/Pleasants Ranch helped give Pleasants Valley its name. Through generations, the family raised livestock, grew orchards, and now focuses on queen bee production and regenerative agriculture. Despite the destruction of historic buildings during the 2020 LNU Lightning Complex Fire, including an original 1880 barn, the ranch was rebuilt. Under the care of Ethel Hoskins and the Joyful Ranch Foundation, this historic homestead is preserved for future generations and recognized on both the National and State Registers of Historic Places.

    125-Year Honorees

    Gowan’s Family Orchard – Philo, CA

    Established in 1876, Gowan family orchards are located in Philo, California, near the Mendocino coast, in the heart of Anderson Valley. Gowan’s Heirloom Cider is California’s pre-eminent premium cider, estate grown, produced, and bottled. Gowan’s Heirloom Cider is self-distributed in California, and available online throughout most of the US.

    Tyron Ranches – Del Norte County

    The Tryon family first settled in Del Norte County in the early 1800s. In November 1883, George Tryon purchased the original ranch property, laying the foundation for a multi-generational legacy in agriculture. Today, the ranch is proudly owned and operated by his great-niece, Rose Tryon. Rose acquired the ranch from her father, Presley Scott Tryon. Rose attributes her deepest inspiration to her grandmother, Celia W. Tryon, the matriarch of the ranch who passed on a profound respect for the land and her family’s heritage. Rose is honored to farm the same fields today where she once fed hay alongside her grandmother as a child. A lifelong advocate of agriculture, Rose Tryon has dedicated herself to advocacy and leadership. She is a former State President of California Women for Agriculture and currently serves as the National President of American Agri-Women.

    100-Year Honorees

    Heinke’s Family Farm – Paradise, CA

    Founded in 1925, Heinke’s Family Farm has evolved from fruit preserves to organic juice and specialty crops. Known for launching the U.S. kiwi industry, the farm faced devastating loss during the 2018 Camp Fire—but the orchard and vineyard survived. Today, Heinke’s stands as a powerful symbol of resilience and renewal, continuing to grow and distribute organic produce nationwide.

    San Gabriel Nursery & Florist – San Gabriel, CA

    Established in 1923 by Japanese immigrants Fred and Mitoko Yoshimura, this beloved nursery overcame immense adversity. In 1942, the Yoshimura family—American citizens—were forcibly relocated to an internment camp during World War II. After the war, they returned and rebuilt across the street, growing the nursery into a flourishing business and cultural landmark. Fred was a pioneer of the California Bonsai Society, and the family introduced unique plant varieties like the “Mission Bell” azalea.

    About the California State Fair Ag Heritage Program:

    The Agricultural Heritage Club was established in 1948 to honor California farm families who have maintained continuous family ownership and operation of their land for 100 years or more. The awards are a cherished State Fair tradition celebrating the vital role agriculture plays in California’s identity and economy.

    The California State Fair runs through July 27. Gates open at 4 p.m. Monday through Thursday and at 10 a.m. Friday through Sunday. For tickets, schedules, and updates, visit castatefair.com.

    About the California State Fair

    The California State Fair is an international award-winning fair, receiving top honors at the International Association of Fairs and Expositions out of more than 1,100 fairs world-wide. The California State Fair is dedicated as a place to celebrate the best the state has to offer in agriculture, technology, and the diversity of its people, traditions, and trends that shape the Golden State’s future.

  • Daily Consumption of Grapes Improves Muscle Strength Markers in Postmenopausal Women

    A new study from the University of California, Davis, published in the peer-reviewed journal Food & Function, provides the first clinical evidence showing that regular consumption of grapes – just 1 ½ cups per day – can improve muscle strength and boost irisin levels in postmenopausal women. The results suggest a promising strategy against age-related muscle decline, also known as sarcopenia. Sarcopenia is the loss of muscle mass and strength. These losses can start as early as age 40 and with progression over time, sarcopenia adversely affects quality of life including degree of mobility, loss of independence, and higher healthcare costs.

    In this study, led by Gerardo Mackenzie, Ph.D., one group of subjects consumed whole grape powder (equivalent to 1 ½ cups fresh grapes per day), while the other group consumed a placebo powder that had none of the beneficial phytonutrients found in grapes. The women consuming grape powder significantly improved their performance on the tests of muscle strength: hand grip and gait speed. Irisin, a hormone that is beneficial for muscle and bone growth, was also measured pre-and post-study interventions. Those consuming grapes had a 14.4% increase in plasma irisin levels, while the placebo group saw a 7.8% decrease in irisin levels, although the changes did not reach statistical significance. However, the research team observed a positive and significant association between changes in grip strength and changes in irisin levels from baseline to the end of the study.

    “These findings indicate that regularly consuming a modest amount of grapes – just 1 ½ cups per day – can help improve muscle strength in postmenopausal women who are at risk for muscle loss as part of aging,” said Mackenzie. “Incorporating grapes into the diet may offer an easy and promising nutritional approach to help mitigate sarcopenia, a condition for which there are no effective treatment options.”

  • Shrinking Labor Force Threatens US Economic Growth

    Declining labor force participation, lower birth rates and a collapse in net migration are combining to squeeze the U.S. labor supply. The looming labor shortage could begin to weigh on businesses and strain economic growth as soon as later this year, according to a new quarterly report from CoBank’s Knowledge Exchange. With the labor supply about to get tighter, businesses and industries operating in rural America should be increasing their focus on technology to overcome labor availability challenges.

    “Barring an unforeseen change in labor force participation rates or immigration policies, the pool of available workers is set to shrink precipitously in the next few years,” said Rob Fox, director of CoBank’s Knowledge Exchange. “The problem will be even more acute in states with lower population growth in the Upper Midwest, Corn Belt and the Central Plains. Increased adoption of technology, namely AI and robotics, will likely be at the core of any strategy to address the oncoming labor squeeze.”

    The labor force participation rate has trended downward since 2000, and the trend may be accelerating. Nearly 2.5 million working-aged people dropped out of the labor force in the past eight months alone. The U.S. fertility rate has plummeted since the Great Financial Crisis in 2008, reducing the number of native-born citizens entering the workforce. The loss of those new workers coincides with baby boom generation retirements, amplifying the impact on the overall labor supply. Those two factors, combined with more restrictive immigration policies and aggressive deportation efforts, will put significant stress on the U.S. labor supply with the potential to impede economic growth.

    U.S. Economy

    While the economy appears to be running well as evidenced by low unemployment and easing inflation concerns, consumer sentiment remains historically low. A major reason for the sour mood among consumers is the escalating cost of housing. The monthly cost of homeownership in the U.S. rose 60% between 2021 and 2024 and there is little hope of improvement anytime soon. Rising unaffordability of homes has driven the homeownership rate lower for the first time since the aftermath of the 2008 subprime mortgage crisis. For homebuilders, the economic situation and outlook are equally painful. New single-family housing starts have dropped by 16% over the last three months and the index of publicly traded homebuilders is down about 30% since late 2024.

    U.S. Government Affairs

    President Trump scored a major legislative victory with the passage of the One Big Beautiful Bill Act. As with all budget reconciliation efforts, politics took center stage – and this one may have caused the deepest political rift in a decade. Fights over the farm program policy and funding addressed in the OBBBA left the traditional farm bill coalition in Congress fractured, and longstanding industry alliances in doubt. Farmers and ranchers still walked away with significant wins. But rural economic development programs were cut or left out entirely, and domestic food assistance received its largest funding cut in history. In all, total farm bill program funding took a nearly $200 billion hit.

    Grains, Farm Supply & Biofuels

    Favorable growing conditions in the U.S. and South America are pressuring corn prices, which fell 7% last quarter on the prospects for a record U.S. harvest this fall. Export demand for old-crop U.S. corn and soybeans remains strong, but new-crop export sales are sluggish amid ongoing trade uncertainty. Sales of new-crop soybeans are historically low due to the lack of Chinese demand. The U.S. winter wheat harvest on the Plains has been hampered by heavy rains, but crop yields are set to be the best in years. U.S. wheat stocks available for blending were up 22.1% year-over-year as of June 1.

    Agriculture retailers and farm supply cooperatives enjoyed strong spring agronomy sales due to good weather conditions and increased corn acres. However, pre-sales for the 2026 growing season are projected to soften due to tariff uncertainty, higher interest rates and farmer profitability constraints. As farmers look to minimize losses, many may choose to limit chemical applications. Agriculture retailers are delaying buying decisions and inventory builds due to higher input prices. USDA’s latest cost of production estimates show no relief in sight and a slight increase from 2025 into 2026.

    Lingering uncertainty surrounding U.S. biofuels policy continues to cast a shadow on the outlook for production and demand. Renewable volume obligations, small refinery exemptions and the 45Z Clean Fuel Production Tax Credit are the three legs the biofuels industry will be balancing on as the year progresses. Soybean oil may be the winner in EPA’s proposed RVO change, as it likely shifts more domestic soybean oil to be used for biofuels. EPA indicated it would make its determination of small refinery exemptions by release of the final RVO rule at the end of October which will also impact overall biofuels demand.

    Animal Protein & Dairy

    Record high beef cattle prices continue to support strong margins for cow-calf producers and feedlot operators, while squeezing packers. Calf prices hit a record $405 per cwt. in May, up 25% year-over-year. Tight supplies have pushed feeder and fed cattle futures up at a similar pace. Feeder cattle futures for the nearby August contract were trading at $302 per cwt., up 18% from a year ago. The supply of Prime and Choice graded beef is at its highest level since 1988, as U.S. beef producers have focused on improving meat quality to effectively boost demand.

    Domestic and international demand for pork is gaining momentum with the start of grilling season and lower cold storage inventories. Hog prices have jumped significantly through June. Lean hog futures on the CME surpassed $112 per cwt. in June, the highest since July 2022. The pork carcass cutout value rose to average $103 per cwt. in the second quarter. Inventories of pork in cold storage were down 7% year-over-year, signaling strong international demand for U.S. pork. Domestically, new marketing campaigns are promoting pork’s taste and flavor, encouraging an upward move in prices for producers.

    The U.S. broiler sector entered 2025 well positioned to serve the restaurant industry’s desire to show consumers an inflation-busting animal protein offering. Promotional activity and new chicken menu items throughout the quick service restaurant sector are meeting consumer demand for a value-added meal. Production of eggs and broiler meat are improving and setting new records to help meet the growing demand. Broiler prices have seen an extraordinary boost from value-added product interest. Seasonal market pressure is likely as the year progresses, but demand should remain relatively stable.

    The U.S. dairy herd is continuing to grow with 90,000 cows added since January. Most of that growth has occurred in Texas, Idaho, Kansas and South Dakota, all states with new dairy processing assets coming online. Producer margins have been favorable enough for dairy farmers to retain cows for milk production rather than sending them to slaughter to capture record beef prices. U.S. milk production increased by 1.6% year-over-year in May, the highest monthly growth in over two years. Strong production has pushed butter exports to reach 87% of last year’s total through May.

    Cotton, Rice & Sugar

    Expectations for the second smallest U.S. cotton crop in 10 years have lifted cotton prices, but not enough to cover farmers’ cost of production. Following two years of drought and disappointing yields, U.S. cotton farmers on the Plains are expected to enjoy bigger yields this year but on a much smaller planted acreage. U.S. Department of Agriculture expects planted acreage for the 2025/26 crop to fall 9.5% to 10.1 million acres. Persistent pressure from a record Brazilian cotton harvest and uncertainty over trade policy with China, continue to limit prices from climbing to profitable levels for U.S. farmers.

    Inclement weather during planting season in southern parts of the U.S. curbed long-grain rice acres while medium-grain acreage in California rebounded as rejuvenated reservoirs allowed farmers to irrigate more acreage. The shortfall in long-grain rice will impair the U.S. exports program and domestic millers will compete for scarcer bushels. Global rice prices continue to struggle under the weight of a flood of rice released from record Indian stockpiles. Strong U.S. exports of medium-grain rice, particularly to Japan, are a bright spot for U.S. rice farmers.

    Sugar demand faces a multitude of headwinds, including widespread usage of GLP-1 dietary medications reducing consumer demand for snack foods. World and U.S. sugar prices fell last quarter as a result of softening demand. Sugar manufacturers note consumer packaged goods companies have reduced forward bookings, resulting in higher-than-normal inventories. Globally, lower fuel and ethanol prices have caused raw sugar mills to send sugar to the export market rather than to ethanol producers, increasing global sugar supplies.

    Food & Beverage

    Food and beverage brands are reporting less-than-stellar earnings in the most recent quarter, with companies from PepsiCo to Kraft Heinz lowering their fiscal year guidance. Others are taking a wait-and-see approach to the impact of tariffs and higher prices on their overall performance. KPMG’s April 2025 consumer survey found 69% of consumers are eating more at home, with 85% of those citing budget constraints. Restaurants are feeling the shift in consumer spending. Virtually all major chains in the country have experienced notable declines in recent quarters. Restaurants laser-focused on delivering value have had the best success in recent months.

    Power & Digital Infrastructure

    Given geopolitical unrest following the U.S. strikes on Iranian nuclear facilities, U.S. energy security and the strategic petroleum reserve have received surprisingly little attention. The U.S. is now a net oil exporter, leading some to question whether the U.S. should have a strategic reserve at all. However, calls for the dismantling of the SPR are likely misplaced. While the shale revolution offers an important buffer, the nation’s petroleum reserve remains a critical national security asset, providing additional speed and agility when oil supply is scarce. Keeping the SPR at historic low levels limits response options to future events and risks greater consumer price exposure.

    Recent changes to the Broadband Equity, Access and Deployment program mark a shift away from the Biden administration’s “fiber-first” strategy. Under the new rules, fixed wireless and satellite technologies will now have greater access to BEAD funding provided they meet minimum performance benchmarks. This new direction introduces both strategic opportunities and competitive threats for rural broadband providers. Operators that choose not to participate in BEAD may find themselves vulnerable to government-funded fixed wireless competitors. Alternatively, rural internet service providers can go on the offense and pursue BEAD funding to expand their own footprints, especially in areas where fixed wireless is eligible.

    Read The Quarterly. Each CoBank Quarterly provides updates and an outlook for the Macro Economy and U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Cotton and Rice; Specialty Crops; Food & Beverage industries and Rural Infrastructure.

    About CoBank

    CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 78,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

  • Opportunities for CA Tree Nuts & Dairy in Upcoming Trade Mission to Mexico

    The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) is now accepting applications for its upcoming agribusiness trade mission to Mexico City, Mexico, scheduled for November 3–6. U.S. exporters interested in exploring trade opportunities in Mexico’s dynamic agricultural market must apply by Thursday, July 31.

    “Strengthening export opportunities for American farmers, ranchers, and agribusinesses is a top priority of USDA,” said Deputy Under Secretary for Trade and Foreign Agricultural Affairs Michelle Bekkering. “This trade mission will connect U.S. producers with key buyers in Mexico, expanding economic opportunities, supporting rural prosperity, and keeping American agricultural products globally competitive.”

    Mexico was the largest export market for U.S. agricultural products in 2024, with sales totaling more than $30 billion, supporting approximately 190,000 U.S. jobs. Agricultural trade between the United States and Mexico under the United States-Mexico-Canada Agreement (USMCA) reached nearly $79 billion in 2024 and has shown consistent growth over the last decade.

    To ensure the protection of U.S. livestock herds, in June, Secretary Rollins launched a Bold Plan to combat New World Screwworm (PDF, 434 KB) by protecting our border at all costs, increasing eradication efforts in Mexico, and increasing readiness. USDA also announced the groundbreaking of a sterile fly dispersal facility in South Texas. This facility will provide a critical contingency capability to disperse sterile flies should a NWS detection be made in the southern United States.

    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 strong demand for high-quality agricultural goods.

    Consumer-oriented products represent the largest share of U.S. agricultural exports to Mexico and have increased by more than 75 percent between 2020 and 2024. USDA anticipates strong export opportunities across several product sectors, including:

    •Beef, poultry, and related products

    •Dairy products

    •Seafood

    •Tree nuts

    •Pet food

    •Baking and food processing ingredients

    Additional opportunities exist for U.S. products such as animal feed, rice, pulses, seed potatoes, and livestock genetics.

    During the trade mission, U.S. agribusiness representatives will connect directly with buyers from Mexico City and surrounding regions through business-to-business meetings, market briefings, site visits, and networking events led by FAS staff and regional experts.

    For more information or to apply, see the Mexico Agribusiness Trade Mission webpage. The application deadline is Thursday, July 31, 2025.

    The Mexico trade mission is part of USDA’s broader 2025 export promotion strategy. Recent trade missions to Thailand, Guatemala, Hong Kong, and Peru have delivered measurable success for U.S. exporters. Applications are now closed for the trade mission to Taiwan. To learn more about FAS agribusiness trade missions, visit https://www.fas.usda.gov/topics/trade-missions.