Thursday, January 1, 2026

2025 Top Ag Stories: Best of Rest - 1: TV's McBee Sentenced; Cropland Values Rise; DEF System Rules Eased

OMAHA (DTN) -- From New World screwworm threatening the U.S. livestock industry, to the Trump administration's mass firings at USDA and canceling grants, financial losses and labor fears testing America's farmers, and the One Big Beautiful Bill redefining taxes and farm policy, 2025 was another memorable year for agriculture.


During the past two weeks, DTN has revisited these and other big stories in our annual Top 10 Ag Stories of Year series.

But those stories were just the tip of the iceberg. Beyond the major events that dominated the headlines were numerous other stories that, though they may not have gotten as much attention, had a significant impact on the farming and ranching community and rural America.

In recognition of the importance of these stories to agriculture, we're presenting some of them here as part of our annual "Best of the Rest" list, in no particular order -- but this year in two parts, appearing on DTN Jan. 1-2.

Welcome to Best of the Rest - 1: TV's McBee Sentenced; Cropland Values Rise; FTC, States Sue John Deere on Repair Rights; Hansen-Mueller Files for Bankruptcy; Kansas Farmers Killed in Plane Crash; DEF System Rules Eased.

Ag Reality TV Star Steve McBee Convicted, Sentenced for Crop Insurance Fraud

Ag reality television star and Gallatin, Missouri, farmer Steve A. McBee was sentenced to two years in prison and ordered to pay $4 million in restitution after pleading guilty to crop insurance fraud.

In the weeks following the start of his prison sentence, the U.S. government sued McBee and two of his sons, Cole and Jessie, alleging they hid assets to avoid paying court-ordered restitution. The McBees star in "The McBee Dynasty: Real American Cowboys."

Cropland Values Continue to Rise, Topping $5,830 Per Acre Nationally

The value of all agricultural real estate continued to increase in 2025, rising an average of 4.3% to $4,350 per acre, USDA reported at the beginning of August.

The average cropland value nationally reached $5,830 an acre, up 4.7% from 2024.

The average value of pasture was $1,920 an acre, up 4.9% from a year ago.

USDA released its annual Land Values Summary report on Aug. 1, 2025. The average value includes the value of both the land and buildings on farms.

Every state reported increases in overall farmland land value. Michigan had the highest increase in land value at 7.8%; Tennessee at 7.7%; South Dakota at 6.8%; and Ohio, Texas and Utah each at 6.1%.

Average farmland values ranged from a low of $725 an acre in New Mexico to $22,500 in Rhode Island.

FTC, States Sue John Deere on Repair Rights

The Biden administration sued John Deere alleging the company's practices restrict farmers from the ability to seek repairs for farm equipment including tractors and have driven up repair costs.

Attorneys general in Illinois and Minnesota joined the Federal Trade Commission lawsuit and asked the U.S. District Court for the District of Northern Illinois to order John Deere to make available to farmers and independent repair shops the necessary diagnostic tools to make repairs. In addition, the lawsuit is seeking a permanent injunction against the company.

Hansen-Mueller Fails to Pay Farmers for Crops, Files for Bankruptcy

The Nebraska Public Service Commission suspended the grain dealer license for Omaha-based Hansen-Mueller Co. in October 2025, after a group of 38 Nebraska farmers reported not being paid for grain deliveries.

Less than one month later, the company filed for Chapter 11 bankruptcy protection, listing between 1,000 and 5,000 creditors and assets and liabilities of between $100 million and $500 million.

The company left many farmers unpaid across Iowa, Minnesota, Nebraska, Texas, Kansas, Missouri, Wisconsin, Louisiana, Alabama and Ohio, as Hansen-Mueller moved on to sell its assets.

Kansas Farmers Bob and Lori Schrock Killed in Plane-Helicopter Crash in DC

Kansas canola and wheat farmers Bob and Lori Schrock were among 67 people who died in January 2025 when an American Eagle flight 5342 from Wichita collided with a Blackhawk helicopter.

According to media reports, the Schrocks were on their way to visit their daughter, Ellie, who was a student at Villanova University in Philadelphia.

The Schrocks operated a farm near Kiowa, Kansas, along the Oklahoma border and into Oklahoma.

Trump Administration Eases DEF System Rules

The U.S. Environmental Protection Agency announced new guidance that allows farmers and truckers to revise software to prevent sudden speed and power losses caused by diesel exhaust fluid systems, or DEF.

The Trump administration action starts with model year 2027 trucks, requiring all new diesel on-road trucks to be engineered to avoid sudden and severe power loss after running out of DEF.

With previous regulations, when SCR technology sensors fail, vehicle operators have just four hours before a diesel engine becomes barely operable with speeds reduced to 5 miles per hour before shutting down, creating headaches for farmers.




This Week's Drought Summary (1/1/26)

This week, a massive heat dome settled over the central and southern United States, creating unprecedented warmth for the holiday week. This high-pressure system shattered daily high-temperature records, with readings soaring 15 to 35 degrees above average across the region. Numerous daily records were broken between December 24 and December 27, contributing to what was forecast to be the warmest Christmas Day on record for the contiguous U.S. The weather pattern snapped violently late in the weekend as a powerful winter cyclone swept eastward from the Plains between December 27 and 29. This system drove a sharp cold front through the South, causing temperatures to plummet from record highs to near freezing overnight. Simultaneously, the storm unleashed severe winter conditions across the Upper Midwest and Great Lakes, delivering blizzard conditions and up to two feet of snow near Lake Superior, alongside significant ice accumulations that snarled travel in parts of the Northeast. Precipitation was near- to below-normal for much of the country, while much of the West, and parts of the Midwest and Northeast observed above-normal precipitation during this week. The West Coast was a notable exception where a strong atmospheric river brought heavy precipitation to most of California, dumping over 10 inches of rain in some areas and several feet of new snow in the mountains.


Northeast

Precipitation fell across much of the Northeast this week, though rainfall amounts varied across the region. Heavier amounts (>1.5 inches) were observed across much of New York and in parts of Maine, Pennsylvania, and West Virginia, with the greatest weekly rainfall totals (2 to 3 inches) recorded in portions of central and western New York. This above-average rainfall allowed for the reduction of severe drought (D2) in Maine and reduced moderate drought (D1) coverage in New York and West Virginia. Abnormal dryness (D0) also improved in parts of Pennsylvania and West Virginia. Conversely, below-normal precipitation resulted in the expansion of moderate drought in Massachusetts, Maryland, and Delaware. Abnormal dryness was expanded in West Virginia and into Rhode Island this week. Average temperatures varied significantly across the region, with below-normal temperatures in the north and above-normal temperatures in the south. During the week, temperature departures ranged from -15 degrees F in parts of Maine to +20 degrees F in southern portions of West Virginia.

Southeast

Temperatures were near to above normal across the entire region this week. The largest temperature departures (+18 degrees F) were observed in parts of Georgia and Alabama, while near-normal temperatures were reported along parts of the Virginia and North Carolina coasts and parts of the Florida Peninsula. Rainfall was mostly below normal across the region this week, with much of the region reporting little to no precipitation. Portions of the Southeast were two inches below normal, with most of the region reporting 10% or less of normal precipitation for the week. This combination of below-normal precipitation and above-normal temperatures—alongside worsening conditions shown in short-term SPI/SPEI, streamflow, and soil moisture data—supported the degradation of moderate to severe drought (D1-D2) and abnormal dryness (D0) in the region. Severe drought (D2) expanded in Alabama, Florida, and southern Georgia, and was introduced in northern Georgia. Moderate drought (D1) expanded in parts of the Carolinas, Georgia, and Alabama, while abnormal dryness (D0) expanded into parts of Alabama and South Carolina. Conversely, wetter conditions were observed along portions of northwest Virginia, resulting in small improvements to moderate drought and abnormal dryness in this area.

South

Below-normal precipitation and above-normal temperatures dominated the South this week, resulting in widespread drought degradation across the region. Temperatures were above normal for the entire region, with departures ranging from +5 degrees F to +25 degrees F. Dry conditions also persisted, with monthly rainfall totals ranging from 1 to 5 inches below normal (5% to 25% of normal) for December. Extreme drought (D3) expanded in central Texas, while severe drought (D2) was introduced or expanded in southeast Oklahoma, southeast Texas, west-central Louisiana, eastern Tennessee, parts of central Texas, and northeast Arkansas. Moderate drought (D1) and abnormal dryness (D0) expanded across much of the region.

Midwest

Above-normal temperatures, with departures ranging from +5 to +25 degrees F, were observed across most of the Midwest this week. The largest temperature departures (+25 degrees F) were observed in southern Missouri and in a small pocket of southwest Kentucky. Precipitation was reported across most of the region, with half an inch or more falling across the northern half and the greatest amounts (2 to 3 inches) falling in parts of Illinois, Indiana, and Michigan. This above-normal precipitation led to improvements in extreme drought (D3) in northwest Ohio and eastern Indiana, while severe drought (D2) coverage was reduced in central Illinois, central Indiana, and northwest Ohio. Moderate drought (D1) also improved in parts of Illinois, Indiana, Ohio, and Michigan. Abnormal dryness (D0) saw improvements in central Minnesota, southwest Michigan, and parts of Illinois, Indiana, and Ohio. Conversely, precipitation was below normal across the southern part of the region, with rainfall totals as low as 10% of normal for the week. Growing precipitation deficits and degrading conditions—indicated by short-term indicators, streamflow, and soil moisture data—resulted in the addition of severe drought (D2) in southeast Missouri and the expansion of moderate drought (D1) in Missouri and southern Illinois. Abnormal dryness (D0) also expanded in southwest Indiana and western Kentucky.

High Plains

Warmer-than-average temperatures dominated the High Plains this week, with departures ranging up to +25 degrees F above normal, while near- to below-normal temperatures were observed along northern portions of the region. Precipitation varied across the region, with most areas reporting near- to below-normal totals. Western Wyoming was the exception, where weekly precipitation totals were 200% to 600% of normal. Consequently, severe drought (D2) was removed from western Wyoming, while moderate drought (D1) and abnormal dryness (D0) improved. Conditions were drier on the east side of the state, justifying the expansion of abnormal dryness in those areas. The majority of the southern half of the High Plains observed temperatures 10 to 20 degrees above normal for the week, while precipitation totals were reported to be 25% or less of normal. Extreme drought (D3) expanded in central Colorado, while moderate drought (D1) expanded in southern Colorado, across northern portions of Nebraska, and in southeast Kansas. Abnormal dryness (D0) expanded across northeast Colorado, southern and northern portions of Nebraska, and in southeast Kansas.


West

Temperatures were above normal across much of the West this week, while below-normal temperatures were observed along parts of the West Coast and in northern Montana. For the week, temperature departures ranged from -10 degrees F below normal in northern Montana to +25 degrees F above normal in parts of Nevada and Utah. Precipitation varied across the region, with beneficial amounts falling across much of the southwest and parts of the north. Over the past 14 days, much of the West has received 2 to 20+ inches of precipitation, with departures ranging from +1 to +8 inches above normal (150% to 800% of normal). This above-normal precipitation justified the removal of extreme drought (D3) from the Washington-Idaho-Oregon border and reduced severe drought (D2) coverage in northern Montana. Moderate to severe drought (D1-D2) conditions improved in portions of Washington, Idaho, Montana, Nevada, and southern Arizona, while moderate drought (D1) was removed in western Washington and improved in north-central Oregon and central Arizona. Abnormal dryness (D0) was removed from southern California and improved across northern portions of the region. Conversely, conditions were drier than normal across interior and eastern portions of the region. Lack of precipitation and growing deficits resulted in the expansion of severe drought (D2) in western Utah, while moderate drought (D1) and abnormal dryness (D0) expanded in central Nevada this week.


Caribbean

Several surface troughs and remnants of cold fronts manage to leave a couple of significant showers along the U.S. Caribbean islands. These beneficial rains, along with improving streamflow levels and vegetation health, resulted in improvements to abnormal dryness in central and northern parts of the island. Conversely, abnormal dryness was expanded in parts of the northwest, southwest and south, where based on rainfall deficits and declining groundwater levels.

At the start of the drought week (Wed, December 24 – Tue, December 30, 2025), the remnants of a frontal system brought showery conditions to the region. Relatively stable weather conditions ensued, as a surface high pressure system extending from the western Atlantic into the Caribbean promoted subsidence and brought dry, cooler air to the USVI. Apart from a stray shower or two, relatively cool and dry conditions prevailed through the remainder of the drought week, accompanied by abundant sunshine. The main concern this week was for rip currents along the northward-facing beaches due to pulses of long period northerly swells. A short-wave trough approaching from the western Caribbean is forecast to bring an increase in moisture, with scattered to numerous showers returning to the region just beyond the end of this drought week. Weekly satellite-based (SPoRT GPM IMERG) precipitation estimates for the USVI (through 12z Dec 29th) were generally 0.75-inch or less.

According to weekly precipitation data from CoCoRaHS, anywhere from 0.08-inch to 1.06 inches of rain fell at St. Croix. The precipitation measurements (in descending order) were: at observing site VI-SC-20 (Frederiksted 1.7 ESE): 1.06 inches, 7 days of data; VI-SC-35 (Frederiksted 1.3 ENE): 0.85-inch (6 days of data); VI-SC-29 (Frederiksted 2.5 NNE): 0.69 (7); VI-SC-25 (Christiansted 4.4 W) and VI-SC-30 (Christiansted 1.7 SW): 0.31 (7); VI-SC-10 (Christiansted 1.6 E): 0.25 (6); and VI-SC-24 (Christiansted 2.1 ENE): 0.08 (4). The Adventure 28 USGS Well water level ranged between 18.55 feet (Dec 24, 6:30 am AST) and 18.79 feet below ground level (Dec 30, 12 noon AST). For most of the period, the water level slowly subsided. At East Hill (station 672560), the Standardized Precipitation Index (SPI) values at 1-, 3-, 6-, 9-, and 12-months were respectively: -0.09, -0.77, -0.36, -0.10, -0.07. These values are consistent with slight dryness. Therefore, St. Croix’s drought depiction remains at D0(S) this week.

Scant rainfall observations were noted at St. John this week. Amounts ranged from 0.17-inch at VI-SJ-10 (Cruz Bay 3.1 NNW) with 7 days of data, to 0.10-inch at VI-SJ-3 (Windswept Beach) with 7 days of data, to 0.02-inch at VI-SJ-8 (Cruz Bay 7.4 E) with only 1 day of data. The heavier rainfall experienced during the autumn has tapered off significantly by the end of the calendar year. Provisional wellwater data from the Susannaberg Dpw 3 Well was at its highest level this week at 10.90 feet (Dec 24, 2:45 am AST) and lowest level at 11.30 feet (Dec 30, 10:00 am AST), with a gradual fall in water level during the week. At Windswept Beach, the SPI values at (1-, 3-, 6-, 9-, 12-months) were, respectively: -0.44, -0.94, 0.05, 0.01, and 0.29, consistent with slight dryness at the most recent timescales. Considering as a whole the reduced precipitation amounts, falling groundwater levels, and most recent SPI values, the drought depiction at St. John was degraded to D1(S) this week.

On the island of St. Thomas, weekly precipitation amounts included VI-ST-5 (Charlotte Amalie West 4.2 WNW): 0.63-inch (2 days of data), VI-ST-15 (Charlotte Amalie West 1.3 N): 0.44-inch (7 days of data), and VI-ST-13 (Charlotte Amalie West 1.2 NNW): 0.04-inch (6 days of data). The Grade School 3 Well water level started at 6.48 feet (Dec 24, midnight AST), briefly nudged upward to 6.32 feet (Dec 25, 9:30 am AST), then steadily declined throughout the remainder of the drought week, ending at 6.79 feet (Dec 30, 12:15 pm AST). At King Airport (11640), the only available SPI value this week was -0.87 at the 1-month time scale, consistent with very recent dryness. Considering as a whole the reduced precipitation amounts, falling groundwater levels, and 1-month SPI value (albeit, only a single number), the drought depiction at St. Thomas was degraded to D1(S) this week.

Pacific

Temperatures were mostly below-normal this week for Alaska, with departures ranging from -5 to -20 degrees F below normal. Conditions were drier than normal for much of the state, while parts of the west, east-interior, and the Panhandle were wetter than normal this week. Up to 2 inches of precipitation was reported in the Bristol Bay area, justifying the removal of abnormal dryness (D0) in this area.

There were no changes to Hawaii’s depiction this week.

This drought week (Wed, December 24 – Tue, December 30, 2025) across the USAPI domain was characterized by various progressive features such as passing trade-wind troughs, shear lines, the Inter-Tropical Convergence Zone (ITCZ) or associated fragments of it, upper-level troughs, the tail-end of a broad mid-latitude frontal system, a weak circulation south of Palau, all interspersed with periods of dry trades (i.e., no converging boundaries or uplift mechanisms to support convection). As strong mid-latitude high pressure passed north and east of the region, trade winds and northeast ocean swell waxed and waned. Over the South Pacific, shortly after the middle of the drought week, Invest 99P organized to the north and east of Tutuila, American Samoa, with widespread showers and storms expected for the region (including Swain’s Island and the Manu’a Islands). As the intensifying disturbance recedes from the area to the east and south, conditions should begin to improve.

Satellite-based (SPoRT GPM IMERG) precipitation estimates for the week ending 12z Dec 29 show widespread coverage of 1-2 inch rainfall amounts near/over the islands of American Samoa, but the amounts quickly rise to a widespread 2-4 inches just north and east of the area, in large part due to the presence of Invest 99P. The Joint Typhoon Warning Center (JTWC) expects 99P to develop rapidly over the next 1-2 days in an environment characterized by very warm sea surface temperatures (29-30 deg C) and less than 10 kts of vertical wind shear. North of the equator, two areas of approximately 1-2 inch rainfall amounts were noted; the first was linear and extended from south of Palau eastward to near the island of Kapingamarangi, while the second was a circular clump concentrated just west of the CNMI.

The Commonwealth of the Northern Mariana Islands (CNMI) reported a “dry” week overall, with rainfall amounts falling short of the 1-inch minimum threshold requirement to meet most water needs. At the Saipan International Airport, a manual gauge measured 1.55 inches for the month of December so far, and a rain gauge at Capitol Hill measured 2.16 inches for the same period (hence no weekly rainfall totals are available). Though these values fall well short of the 4-inch monthly minimum threshold, vegetation is still reported to be healthy and green. Therefore, Saipan’s drought depiction remains at D0(S) this week. The nearby island of Tinian received 0.42-inch of rain this week (only 3 days of data), and its depiction also remains at D0(S) this week. The Rota Airport measured almost three times the amount of precipitation as Tinian this week (1.17 inches), and its drought designation remains free of any drought. The territory of Guam fared much better compared to the CNMI, with observed totals mostly in excess of the 1-inch threshold early in the drought week, followed by a much drier pattern for the remainder of the period. Rainfall amounts included Agat (1.51 inches, 5 days of data), Guam (1.19 inches, 6 days of data, remains drought-free), and Dededo (0.94-inch, 4 days of data).

The Republic of Palau recorded a “dry” week, with weekly precipitation totals less than the 2-inch minimum requirement. WSO Palau (Airai) received 1.23 inches of rain this week (6 days of data) and Koror reported only 0.37-inch of rain this week (5 days of data). With surplus precipitation reported every month in 2025 (at least through November), Palau remains free of any drought.

Across the Federated States of Micronesia (FSM), precipitation amounts varied widely. In descending order, the “wet” stations include: Rumung led the pack with 4.70 inches and only 3 days of data, Pohnpei (4.61, 6), Nukuoro (4.58, 6), Kosrae (4.46, 6), Yap Island (3.51, 6), and Lukunoch (3.11 inches, 6 days of data). The “dry” stations were: Kapingamarangi (1.62 inches, 6 days of data), Woleai (0.98, 4), Pingelap (0.38, 6), Chuuk (0.19, 4), and Gilman (0.02, 2). Pingelap now has 4 dry weeks in a row, and 3 dry months in a row (December is likely to end as a dry month), warranting a one-category degradation in its drought depiction to D0(S). With the exception of Pingelap, all stations with available data remain dryness- and drought-free this week. No data was available for analysis this week at both Ulithi and Fananu.

Precipitation amounts across the Republic of the Marshall Islands (RMI) this past drought week were well below the 2-inch minimum threshold requirement to meet most water needs. Received rainfall amounts include Jaluit (1.05 inches, 7 days of data), Ailinglaplap (0.25, 7), Majuro (0.19, 7) and Kwajalein (0.17, 7). There were no reports from Mili, Wotje, or Utirik this week. Kwajalein retains its D0(S) status, while the other stations with available data remained drought-free.

In the South Pacific, American Samoa received significant rainfall amounts this week, easily surpassing the 2-inch minimum cutoff. For the higher elevation sites, Toa Ridge reported 4.37 inches of rain with 6 days of data, while at Siufaga Ridge no data was available. The Pago Pago Airport accumulated 2.77 inches of rain this week, with 5 days of data. Therefore, the island of Tutuila remains drought-free.

Looking Ahead

During the next five days (December 30, 2025–January 3, 2026), a highly amplified pattern will create a sharp divide across the Continental U.S. An upper-level ridge situated over the West Coast will keep conditions initially quieter there, while a broad trough east of the Mississippi River will usher in cold air and active winter weather to the eastern states. A strong low-pressure system exiting the Northeast will leave behind blustery conditions and significant lake-effect snow, particularly downwind of the Great Lakes where accumulations of 1-2 feet are possible in Upstate New York. As the week progresses, a reinforcing cold front will sweep through the East on Thursday, maintaining the chill and snow chances, while the western ridge will begin to move inland. This split flow will result in a notable temperature dichotomy across the country. Below-average temperatures will grip the region from the Northern Plains to the East Coast, with the coldest conditions centered on the Upper Midwest where highs in the single digits and subzero overnight lows are expected. Dangerous wind chills may affect the central Gulf Coast and Southeast early in the period. Conversely, much of the West and High Plains will experience above-average warmth. By Thursday and Friday, the weather pattern will shift in the West as Pacific systems move in, bringing rain and mountain snow back to the coast, with potential heavy precipitation in Southern California and snow in the Sierra Nevada.

The Climate Prediction Center’s 6-10 day outlook (valid January 4–8, 2026) favors above-normal precipitation across Hawaii, the Pacific Coast and parts of the interior West, Alaska, and in parts of northern Plains and New England. Below-normal precipitation is favored from the central and southern Plains into portions of the Ohio Valley. Probabilities for above-normal temperatures are increased across most of the U.S., including most of Hawaii, while below-normal temperatures are favored across most of Alaska and much of the Northeast.




Wednesday, December 31, 2025

Top 10 Ag Stories of 2025: No. 1 - Tariffs, Power and Pressure: How Trade Policy Drove Markets and Politics in 2025

OMAHA (DTN) -- Serving as president of the American Soybean Association for most of the year, Kentucky farmer Caleb Ragland was likely the most quoted farmer in the United States in 2025.


China stopped buying U.S. soybeans in the spring and didn't book any buys for the fall crop until U.S. and Chinese officials brokered a deal in late October. In the meantime, the U.S. helped out Argentina, which led Chinese buyers to quickly snatch up Argentinian soybeans.

"The frustration is overwhelming," Ragland said at the time.

Tariffs once again put U.S. soybeans at a competitive disadvantage to Brazil and Argentina soybeans at a time when Brazil keeps expanding its production.

"We gave Brazil and Argentina another excuse to compete with us," Ragland said to DTN this week. "It's a basic business principle that a lot of expense and effort goes into getting a customer on board, and it's a lot easier to keep an existing customer than it is to get a new one. Unfortunately, our largest customer, China, has gotten into a habit of going elsewhere to buy their soybeans and we're seeing that it's hard to get them to come back."

Soybeans and the blocked trade with China became just one element adding to struggles for commodity farmers, who also faced an estimated 12% increase in the costs of various inputs, partially due to tariffs.

President Donald Trump aided farmers with an executive order in November ensuring key nitrogen and phosphate fertilizers would not be subject to reciprocal tariffs.

Still, the tariff disputes were a key factor weighing on markets in early December when the president announced a $12 billion aid package to farmers.

TRUMP SHAKES UP ECONOMY

Soybeans were just one small piece of Trump's tariff policies, but they became a pressure point for crop farmers as the president evolved tariffs from a trade bargaining chip into a much broader tool for reshaping U.S. economic policy.

Trump began by using emergency powers to impose tariffs on Canada, Mexico and China because of fentanyl.

Tariff policies, though, swung like a pendulum. In the early days, tariffs were announced then suspended, and reinstated. Trump set 25% tariffs on Canada in February then pulled them. They went into effect in March.

On April 2, the president announced sweeping reciprocal tariffs of 10% on at least 60 countries, but key trading partners were hit with higher tariffs, which included 34% tariffs on China, 24% on Japan and 20% on the European Union. The tariff on imported automobiles rose to 25%. In making his announcement, Trump pointed to some of the high tariffs other countries impose on U.S. agricultural products and automobiles.

"They have taken so much wealth from our country and we're not going let that happen," Trump said at the time. He later added, "There is no tariff if you build your plant -- your product -- in America."

SOME DEALS WERE REACHED

The tariff moves appeared to produce results. In the coming months, the president and his administration would announce deals to increase market access to the United Kingdom, including commitments to buy more ethanol, beef, cereals, fruits, vegetables and other commodities.

The White House announced a series of deals:

-- The EU agreed to purchase $750 billion in energy and make new investments of $600 billion in the U.S. by 2028 while paying a baseline 15% tariff rate.

-- Japan agreed to invest $550 billion in the U.S. and open its market to more U.S. products while paying a 15% tariff rate.

-- Additional deals were reached with Indonesia, the Philippines, South Korea and Vietnam.

CHINA'S TOUGH TAKE

With China, the Trump administration pressed its case with more than tariffs. The administration designated Chinese entities as national security threats, restricting U.S. capital investments in Chinese companies. The U.S. also moved to tighten restrictions on Chinese access to technology.

Halting soybean purchases was an early move, but Chinese officials made a much bigger play in early October when the country announced sweeping export restrictions on rare earth minerals.

Rare earth minerals are needed for semiconductor manufacturing and are vital for aircraft engines as well as advanced military systems. The minerals are needed for electric vehicles and expansion of the electric grid.

And China controls roughly 70% of global rare-earth mining and has an even bigger share of processing capacity.

China's move on rare earth minerals was so significant Treasury Secretary Scott Bessent and U.S. Trade Ambassador Jamieson Greer held a press conference on Oct. 15 denouncing the impact it would have globally. Greer said China's move "is not proportional retaliation" but "an exercise of economic coercion on every country in the world."

After that, both countries sought an off ramp.

By the end of October, China agreed to delay its restrictions on rare earth minerals for at least a year. The U.S. agreed to lower tariffs by 10% and suspend a rule that restricted Chinese companies' access to certain U.S. technology exports.

CHINA BUYS SLOWER THAN PROMISED

Bessent also hailed that China had agreed to buy U.S. soybeans -- 12 million metric tons (440 million bushels) immediately, followed by an annual target of 25 mmt (918 mb).

Bessent initially said China would buy its 12 mmt "between now and January" but he and other officials later tamped down that timeline.

USDA's export sales, though Dec. 11, 2025, showed sales of 5.4 mmt (198 mb) of soybean purchase commitments to China.

In 2024, China bought 26.8 mmt (984 mb), according to USDA. For the marketing year, China already had 14.6 mmt (536 mb) of soybean buys leaving U.S. ports.

Despite the commitments, the Chinese duty on U.S. soybeans remains at 13%, which includes a 10% tariff added after Trump's new tariffs were announced in April. Brazilian soybeans are subject to only the 3% most-favored-nation tariff.

VOLATILITY OF UNCERTAINTY

It's fair to say the tariffs created a roller coaster of uncertainty during the past year and injected anxiety into the markets, said DTN Lead Analyst Rhett Montgomery. Throughout the summer, traders watched anxiously as it became clear China wasn't in the market.

"I suppose the real consequence is the summer of negotiations, and back and forth escalations and de-escalations with China specifically, really put the U.S. export program behind schedule, with another forecasted record-setting crop from Brazil limiting the window the U.S. has to operate as the most abundant supply of soybeans," Montgomery said.

Oddly enough, January soybean futures have fallen roughly $1.19 since mid-November despite China returning to the market.

Soybeans bore some of the brunt here, Montgomery noted, because corn and wheat exports were relatively unscathed by trade turmoil throughout the year. Corn is looking at back-to-back years of record export sales.

CANADIAN RELATIONS FRAYED

China and soybeans were just one trading relationship under strain. Relations along the world's longest unsecured border deteriorated sharply in 2025.

Canada's leaders would say a close relationship that had long been a strength for the country became a major vulnerability.

Trump initially blamed Canada for fentanyl imports though the data didn't support it. As soon as he got into office, the president also repeatedly goaded Canadians by suggesting it should be the 51st state.

In March, Trump imposed 25% tariffs on Canadian products not covered by the United States-Mexico-Canada Agreement (USMCA), except for energy and potash fertilizer imports, which became subjected to 10% tariffs.

Canada responded by imposing 25% tariffs on about $30 billion in U.S. goods. Canadians also began boycotting U.S. products.

Trump's moves also affected Canada's domestic politics. Former Canadian Prime Minister Justin Trudeau, a liberal, had become unpopular, but Canadians still chose Mark Carney over a populist Conservative leader who had embraced Trump's rhetoric before the tariff war began. Conservative Pierre Poilievre not only lost the chance to be prime minister but lost his own seat in Parliament.

The overall Canadian tariff was bumped up to 35% in August. The president then cut off trade talks after the province of Ontario ran an ad in the U.S. quoting former President Ronald Reagan criticizing tariff policies.

If the conflict did anything, it galvanized Canadian nationalism. Trump's continued hostility toward Canada led provinces in the country to pull U.S. alcohol from store shelves. Liquor stores promoted Canadian products while American whiskey or wine was nowhere to be found. Grocery stores boosted promotion of Canadian-grown food products as well.

Sales of U.S. beer, wine and distilled spirits to Canada dropped by $380 million through the first nine months of the year, or 70% compared to a year earlier.

California wineries saw their sales plummet. Jim Beam halted bourbon production at one of its Kentucky distilleries for 2026 as well.

The decline in alcohol sales was a big driver in lowering overall agricultural export sales to Canada. Through September, the last data available from USDA, agricultural exports to Canada are down 6% for the year, or about $1.3 billion.

By the end of November, Carney said U.S. tariffs and the uncertainty they have created "will wipe $50 billion from our economy -- the equivalent of $1,300 for every Canadian."

Carney has laid out plans to diversify its oil, steel and lumber trade to reduce the country's dependence on the U.S.

AFFORDABILITY

Trump began facing questions about affordability in the fall as consumers complained about high prices. Countries such as Brazil were facing 50% tariffs, which pushed up the costs of some everyday items.

In a speech earlier this month, Trump blamed consumers' perceptions on his predecessor, saying, "I inherited a mess" while he and his administration seek to make the case that the country's economy is stronger now than a year ago. On Truth Social on Dec. 27, Trump credited his tariff policies for boosting the economy.

"Tariffs are creating GREAT WEALTH, and unprecedented National Security for the USA. Trade deficit has been cut by 60%, totally unheard of. 4.3% GDP, and going way up. No inflation!!! We are respected as a Country again."

A SNAPSHOT OF THE ECONOMY

-- As Trump noted, real gross domestic product increased 4.3% in the third quarter of 2025, the highest since the third quarter of 2023 (4.7%).

-- In financial markets, the S&P 500 is set to finish 2025 about 16% higher than a year ago.

-- Tariffs collected by the federal government through November were $236 billion according to the Tax Foundation, compared with $79 billion for all of 2024.

-- The overall U.S. trade deficit is falling with a minus $79 billion deficit on goods in September, which was 29% below the 12-month average. Meanwhile U.S. exports rose 6.9% year-over-year in September.

-- Overall inflation for November came in at 2.7% and has largely remained lower in 2025 than 2024.

-- Unemployment remains low at 4.6%, but up from 4.2% a year ago and the highest since 2021. A portion of the job losses have been in the federal government as the administration cut 249,000 jobs.

-- The Fed's effective fund rate has fallen 4.3% to 3.6% over the past year as well, though banks have tightened credit standards, including for farmers.

WHAT'S NEXT?

As Trump has frequently pointed out, his current tariff strategy -- and use of the 1977 International Emergency Powers Act -- is now in the hands of the Supreme Court, which heard arguments over the tariffs in November. Two combined lawsuits challenge how Trump used the law to impose tariffs.

Administration officials maintain that ruling against the tariffs would "effectively disarm the President in the highly competitive arena of international trade" and stymie negotiations tied to top foreign policy goals. Such a ruling also "would destroy" framework deals with the European Union, United Kingdom, Japan, South Korea and China worth "several trillions of dollars," the administration stated.

Trump has called the High Court's potential decision as one of the most important in history. Without the ability to immediately set his own tariffs, Trump said, "we will be at a major disadvantage against other countries throughout the world."




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