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."

Idaho And Western United States SNOTEL Water Year (Oct 1) to Date Precipitation % of Normal (12/30)

Top 10 Ag Stories of 2025: No. 2 - Growers Expected to Set New Record Average Yields Despite Seasonal Setbacks

JEFFERSON CITY, Mo. (DTN) -- Despite pests, disease and everything Mother Nature could dish out throughout the growing season -- from frosts and flooding to droughts and derechos -- U.S. row-crop farmers still managed to set what are expected to be record average yields for both corn and soybeans in 2025.

While USDA won't release final crop production data for 2025 until January, the agency's World Agricultural Supply and Demand Estimates (WASDE) report released earlier in December forecast average corn yield at 186 bushels per acre (bpa), besting the 179.4-bpa average from 2024. Total corn production and harvested acres also are expected to reach new all-time highs at 16.752 billion bushels (bb) from 90 million acres, surpassing the 15.341 bb harvested from 86.5 million acres in 2023.

Soybeans also set what could be a new record average yield at 53 bpa, eclipsing the 52.6 bpa from 2016. Total production was down as both planted and harvested acreage was at its lowest level since 2019.

COULD HAVE BEEN EVEN LARGER CROP

Had it not been for weather events leading to losses and crop abnormalities in some areas and the onset of some late-season foliar diseases in others, the 2025 corn and soybean crop could have been even larger.

In some regions, the season got off to a quick start as conditions allowed for early and/or rapid planting. But heavy rains across the upper Delta and lower Ohio Valley regions delayed planting, made replanting necessary or prevented planting all together.

A burst of heat in May led to issues with rapid growth syndrome in some young corn stands. While in other places, rapid growth at later stages led to reports of "tassel wrap," a relatively uncommon condition where the uppermost whorl becomes tightly wrapped around the tassel as it begins to emerge. When tassel wrap occurs, the timing of pollen shed and silk emergence can be affected, resulting in varying degrees of ineffective pollination and poor kernel set, depending on the severity.

While how a crop starts is important, so is how it finishes. Later in the season, a lack of precipitation across the lower Midwest and to the east into the Ohio Valley meant that corn didn't pack on as much kernel weight and displayed more tip back than farmers would like. Soybeans in some places struggled to fill pods with beans no larger than BBs.

Diseases also crept into the crop, especially where farmers cut back on fungicide applications to mitigate expenses. In corn, tar spot, southern rust and gray leaf spot wreaked the most havoc. Outbreaks of red crown rot, sudden death syndrome and white mold dominated disease reports from soybeans.

Insect pressure was more isolated; injury was relatively minor when it occurred. Most notably, corn leafhoppers, which can transmit corn stunt disease, were found farther north than usual for the second consecutive season.

Although reports of all-time best yields for many farmers would usually bring satisfaction, that wasn't the case in 2025 for most. Instead, row-crop farmers became victims of their own agricultural success as commodity prices remained low in an environment of abundant global supply and uncertain demand.

Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (12/29)

Average daily streamflows indicated in cubic feet per second.
Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 45 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
Total space available:	2240913 AF
Total storage capacity:	4045695 AF

Top 10 Ag Stories of 2025: No. 3 - How the One Big Beautiful Bill Redefined Taxes and Farm Policy in 2025

OMAHA (DTN) -- What began as a line from incoming President Donald Trump became the defining domestic policy law of 2025.

Trump wanted "one big, beautiful bill" to pass his agenda for tax cuts, mass deportations and energy policies. The One Big Beautiful Bill Act became just that -- a sweeping budget reconciliation package that Trump wanted on his desk before Independence Day.

After failing to get a farm bill done in the two prior years, Congress also added an expansion of the farmer safety net in the One Big Beautiful Bill Act, often called OBBBA or OB3 for short. The budget reconciliation package ultimately added as much as $61.8 billion in spending on farm programs over 10 years.

The legislation set up a monumental battle over how the $4.5 trillion in tax cuts would be partially offset by roughly $1.2 trillion in spending cuts. The Congressional Budget Office projects the OBBBA will increase the national debt by $2.8 trillion over 10 years.

Passing the OBBBA was a high mark of the year for President Trump. He held a rally on July 3 at the Iowa State Fairgrounds to celebrate its passage. He signed the OBBBA on Independence Day at the White House.

"With this bill, every major promise I made to the people of Iowa in 2024 became a promise kept," he said at the rally.

Trump added, "Very simply, the One Big Beautiful Bill will deliver the strongest border on Earth, the strongest economy on Earth, the strongest military on Earth, and ensure the United States of America will remain the strongest country anywhere."

FARMERS BENEFIT

Farmers were among the winners in the legislation. When the bill passed, Sen. John Hoeven, R-N.D., said on social media that Congress effectively passed a seven-year farm bill.

"That includes priorities like updating reference prices for this crop year, stronger and more affordable crop insurance, as well as updates to the sugar program and improvements to livestock disaster programs. These are the core pieces of the farm bill and vital to farm country," Hoeven stated on X.

OBBBA raised reference prices under the Prices Loss Coverage program (PLC) and the Agricultural Risk Coverage (ARC) program. For the 2025-26 crop year, USDA will provide producers with the higher of the calculated ARC or PLC payment rates after the marketing year ends. ARC/PLC payments next fall are projected at $13.5 billion.

Addressing a long-time challenge with base acres, the legislation allows USDA to add up to 30 million new base acres tied to planting history from 2019-23. USDA will have to come up with a prorated formula for determining eligible acres that will be added to the commodity program. However, the law does not allow producers to reallocate their current base acres.

In addition, Congress made several changes to crop insurance, including expanding the Supplemental Coverage Option (SCO) to 90% coverage at the county level while boosting the federal subsidy to 80% of premium costs.

TAX CUTS IN PACKAGE

Among the tax law changes that will affect farmers:

-- A 20% deduction for qualified business income is made permanent, which includes a minimum $400 deduction for businesses with at least $1,000 in income.

-- Updated and expanded 100% bonus depreciation for equipment purchases is made permanent.

-- For smaller businesses, OBBBA also increases the Section 179 deduction to $2.5 million for any business buying $4 million or less in equipment.

-- The estate-tax exemption is made permanent and increased to $15 million for individuals and $30 million for married couples starting in 2026.

-- Full expensing for research and development for farmers or businesses using innovative practices in their operations.

-- A new 100% depreciation allowance for nonresidential property, which will include manufacturing facilities built before 2031. That provision includes language implying the bonus depreciation can be applied for buildings used for agricultural and chemical production.

-- Any capital gains resulting from the sale of farmland to qualified farmers can be paid in four annual installments rather than all at once. Such farmland must have been in agricultural production for the past 10 years to qualify and remain in agriculture for another 10 years after the sale occurs.

-- Rural bankers also will receive a 25% deduction on interest income from qualified rural real-estate loans.

-- For biofuels, the 45Z Clean Fuels Production Credit is extended and modified. The law extended the 45Z tax credit to the end of 2029 but also cuts the top rate for 45Z from $1.75 a gallon to $1 a gallon. Transportation fuels developed from animal manure would also qualify for the credit.

-- The Small Agri-Biodiesel Producer Credit doubled from 10 cents a gallon to 20 cents a gallon.

-- A $10,000 deduction on auto loan interest for couples earning $200,000 or less.

-- The state and local tax (SALT) deduction increases to $40,000 for taxpayers earning under $500,000.

SNAP-MEDICAID CUTS

The OBBBA also cut $185 billion from the Supplemental Nutrition Assistance Program (SNAP) over 10 years, a program that spends about $123 billion a year for roughly 42 million people on the program. The law increased SNAP work requirements while pressing on states to reduce SNAP error rates. The law, though, also temporarily shields states with the highest payment error rates before having to pay a share of SNAP costs. Still, most states will now have to pay a percentage of SNAP benefits starting in 2028, which could cause further cuts to benefits.

Groups such as leaders of food banks said the SNAP cuts would put more pressure on charitable services when demand for food aid is already high.

"In effect, we cut spending on SNAP to double subsidies to farmers," said Jonathan Coppess, associate professor of farm policy at the University of Illinois, during an event in Iowa earlier this month.

Coppess added, "This is the end of the farm bill as we've known it. For 50 years, the core deal has been food assistance paired with farm programs. That deal is now broken. OB3 is the fatal, final blow."

The legislation also didn't extend the premium tax credits for the Affordable Care Act. That led to gridlock in Congress that eventually caused the longest government shutdown in history. Still, Congress could not come to terms on a health-care bill to extend the tax credits, which affect health insurance costs for roughly 24 million Americans.

SNAP cuts also became part of the shutdown fight as the Trump administration effectively used SNAP benefits as leverage, which put pressure on Democrats to end the shutdown. SNAP benefits for 42 million Americans weren't paid throughout most of November as a result.

OBBBA REBRAND

The "One Big Beautiful Bill Act" became unpopular enough among some voters during the summer that the White House and Republicans in Congress in September sought to rebrand the legislation as the "Working Families Tax Cut Act."

Tax refunds for average Americans will be larger because of the OBBBA, according to an analysis from the Tax Foundation earlier this month. The law lowers individual income taxes by an estimated $144 billion.

The act does allow certain service workers to deduct up to $25,500 in tips and workers can deduct up to $12,500 in overtime pay as well. Seniors over age 65 also get a $6,000 bump in their standard deduction.

The SALT cap increase, the deduction for seniors, the overtime deduction and an increase in the standard deduction are the biggest impacts most average families will see. Average tax refunds will increase about $800, the Tax Foundation stated.

Still, the legislation is weighted more heavily toward top earners and corporations compared to middle-income families while lower-income people see limited tax benefits as they face potential SNAP and Medicaid cuts.

Top 10 Ag Stories of 2025: No. 4 - Active Weather Largely Characterizes the 2025 Growing Season

Weather is always a hot-button story to the growing season and always comes with areas that end up in favorable condition, and others that deal with challenges. This one was no exception but tended to be a more favorable weather situation than most years for much of the United States.

That was not the forecast at the beginning of the year, however. A year ago, DTN and other outlets were concerned about hot and dry conditions for the central U.S. in the middle of 2025.

Because of a waning La Nina and a forecast of near- to below-normal sea-surface temperatures in the Pacific Ocean for the summer, the fear was that a stagnant weather pattern would develop and promote long stretches of hot and dry conditions that could wither crops. Many outlets were trying to make comparisons to the dreaded 2012 season. And while the season started with widespread drought, particularly in the Plains and Midwest in early spring, that did not end up being the case for most of the season.

ACTIVE SPRING PATTERN ALLEVIATES DROUGHT CONCERNS

La Nina peaked in January and early February, then quickly moved into a neutral state in March. The ocean temperatures were a little warmer than many forecasts, which meant that other influences on our weather could take over, and they fought it out for months. The result was an active weather pattern, but not for a specific area for too long of a time. Many areas of the country benefited in early spring, though some areas saw flooding as well.

A particularly busy week of weather in the first five days of April produced widespread severe storms and double-digit rainfall over large areas of the Ohio and Tennessee valleys. Flooding was a major issue and led to late planting and long-term delays as wet weather continued for the rest of spring.

In the Plains, the active pattern aided drought reduction and good soil moisture for winter wheat from Kansas southward, particularly in April and May. The same goes with northern areas, as the Dakotas saw reduction in drought as well. Nebraska had to wait until late May, but once the spigot turned on, it was rather frequent for most of the summer, leading to very little drought come harvest time.

The Midwest benefited from this pattern, too. Very few areas were missed by system after system crossing the region. Drought was largely eliminated by the start of summer, except for some smaller patches of moderate drought along the Iowa-Missouri border through northern Illinois and northwestern Indiana. SUMMER STARTS ACTIVE, GOES STAGNANT AS LA NINA REDEVELOPS

The active spring weather pattern continued through June and into the first half of July. Predictions for corn and soybean production were record high by the middle of the season, and the early concerns about poor weather essentially vanished. Only very small areas of drought existed on the drought monitor east of the Rocky Mountains at the end of July.

Though some significant severe weather did occur, including a couple of major widespread wind and tornado events in May, and a derecho across North Dakota into northwest Minnesota on June 20, the weather was overall favorable for most areas of the country.

Because of cooling waters in the Pacific Ocean, the weather pattern became much more stagnant in the second half of summer. This continued to favor much of the Plains and Upper Midwest, with frequent rainfall that bolstered expectations for high yields. But the eastern half of the Corn Belt through the Delta and parts of the Southeast turned much drier. Drought grew rapidly from Arkansas up through Ohio, resulting in a flash drought as areas went from not having any designations on the U.S. Drought Monitor in early August to D3, or extreme drought, by mid-September. The water levels on the Mississippi River quickly took a tumble and have been low ever since, resulting in headaches for transportation up and down the river systems.

The active weather pattern caused many in the Plains to have a near-normal summer season in terms of temperature. Extreme heat was limited to shorter stretches this year. Meanwhile, the lack of rainfall and increased temperatures led to heat stress for much of the Delta and Eastern Corn Belt, especially toward the end of the season.

Dryness continued for the late-fill period in early fall, but ebbed and flowed more across the county, particularly in the Eastern Corn Belt. Several systems hit the Ohio and Tennessee valleys in late September and October but were too late to benefit crop production and could not provide a big enough boost to the water levels on the Mississippi River, at least not for an extended period. Drier conditions started to work into the Central and Southern Plains, and drought began to increase again, but did so in patchy fashion. La Nina finally became official, according to NOAA, in October.

WEATHER INCREASED DISEASE PRESSURE

Southern rust became a big topic during the late-summer and early fall season. Producers were noting dust clouds as their combines started to roll in Iowa and Illinois. This was due mainly to the good weather in the spring across the South. Heavy rain and wet conditions, along with mild to warm weather, allowed the rust to grow across the Delta and Southeast. As the summer wore on, frequent systems continued to bring moisture northward, carrying rust spores and other diseases northward as well. Frequent rainfall and high humidity in the middle of the country helped rust to continue to develop throughout the end of summer.

OTHER EVENTS AND WEATHER NOTES

The weather during the growing season was largely favorable for a lot of the country but wasn't perfect. Drought was a major issue for producers in Montana for most of the year. The Pacific Northwest dried out, and drought was introduced in May and continued to grow throughout the year. Heavy rain and flooding wiped out drought in California and significantly reduced it in the Four Corners area but also led to the tragic flooding event in the Hill Country of Texas in early July. Wildfires were frequent and widespread for the first half of the year in the West and Canadian Prairies, leading to smoke hazards for much of the spring and summer.

On a more favorable note, the hurricane season was rather quiet. Only one tropical storm landed in the U.S., moving across Florida and then the Carolinas into Virginia in early July. For the first year since 2015, no hurricanes landed on the U.S. mainland, though there were three Category 5 storms, including Hurricane Melissa that posted maximum sustained winds of 185 mph and devastated Jamaica and eastern Cuba.

And lastly, winter started off quite severely. During Thanksgiving week, a plunge of arctic air spread across the country and was repeatedly reinforced through the first half of December. Snow was frequent and led to widespread coverage over most of the Northern Plains, Midwest and Northeast by Dec. 14. That has quickly flipped the page to end the month, however, and extreme warm weather is forecast to break records during the week of Christmas, eliminating a lot of that snow. The front-loaded winter season is likely to return in January as extremely cold air lurks in Western Canada and should return at some point in the month.

Top 10 Ag Stories of 2025: No. 5 - Cattle Industry Experiences Historical Prices, Herd Numbers and Volatility

REDFIELD, Iowa (DTN) -- Cattle producers have experienced highs and lows in 2025, with the highs continuing to be the market prices because of the historical low in the cattle inventory.

The cattle herd is the smallest it has been in more than 70 years, which has helped boost prices. This has also led to a slower rebuild of the herd. Many producers have already culled cows that have problems, but now are reluctant to keep many heifers back or purchase more, because of prices.

Oklahoma State University Livestock Marketing Specialist Derrell Peel said the last time prices were near this high was in 2014 when herds were liquidated mostly because of drought, but the herd was rebuilt quickly after that. He said this time it would take until 2029 to see an impact on herd number if producers started to rebuild now; but the markets still seem to be preventing that.

DTN Livestock Analyst ShayLe Stewart agreed. "There's only one way to properly describe the cattle market in 2025 -- and that's by saying it was truly a record-breaking year in every sense of the word. Record-breaking prices across the entire marketplace -- futures contracts, feeder cattle prices, fed cattle prices, bred cow prices and cull cow prices, too." Profits have been record-breaking in some cases -- but so have volatility and risk.

CURRENT BENEFITS AND RISKS

Cow-calf producers have reaped the benefits of a historically low domestic calf crop, she said. These prices have also been driven higher by the closure of the U.S.-Mexico border as the fear of New World screwworm lingers.

"These producers also faced the challenge of longing to rebuild their cow herds as bred cow prices have easily averaged over $4,000 per head late this fall and early winter, and as the sheer cost to operate remains a heavy burden in and of itself," she added.

For those who elected to take this opportunity in the marketplace to exit the business on what will be remembered as one of the wildest rallies ever seen in the cattle sector, the decision was somewhat easy, as never before has the market extended prices to levels seen in 2025. Stewart said when leverage begins to shift from the grass root level to the feeding sector again, it will be anyone's guess on when prices could touch these thresholds again.

"But on the other hand, for those who are playing the long-term game, this year presented plenty of opportunities to sell -- and sell like never before. But buying cattle, of any kind or class, was the real challenge of the year," she added.

MOVING FORWARD

Peel said prices should remain strong at least into 2027. Price pressure could be seen by the end of the decade if herd growth happens. The great thing about the whole supply side is the demand has continued to be strong.

Meat supplies have stayed somewhat constant because of an increase in carcass weights. The average carcass weight for 2024 was 927 pounds and increased to 944 pounds for 2025. The increase is expected to continue with tight supplies to provide more meat for consumers. The trend of breeding dairy cows to beef bulls has helped provide more beef for consumers as well.

President Donald Trump became involved in the cattle markets through an investigation of beef packers and increasing beef imports. This came with reaction from both cattle producers and the markets. The National Cattlemen's Beef Association CEO Colin Woodall criticized Trump's plan for imports, wanting to let the cattle markets work like they should and not risk the livelihoods of America's cattlemen and women.

The latest Cattle on Feed report released Dec. 19, showed Dec. 1 cattle and calves on feed for slaughter are down 2% from the same time in 2024. Live cattle futures closed higher, as did March feeder cattle following that report. It will be interesting to see what the market does as it moves into 2026.

This Week's Drought Summary (12/24)

During the last 7-days, strong anomalous ridging over the Aleutians and troughing over the Gulf of Alaska promoted northerly flow across Alaska, leading to below-normal temperatures and little snowfall. Downstream, an unusually strong ridge dominated the flow across the contiguous United States. Between the northeastern Pacific trough and this ridge, strong onshore flow and atmospheric river activity promoted copious amounts of precipitation across the Pacific Northwest, though above-normal temperatures kept snow elevations higher than normal and limited the ability of this precipitation to substantially build early season snowpack across the Cascades, northern Sierras, and northern Rockies. Little to no precipitation was observed across the Southwest through the Plains under the anomalous ridge, and much above-normal temperatures promoted degradations of drought depictions for portions of the Rockies, Great Plains, and the lower to mid-Mississippi Valley. Across the East, an active northern stream saw the development of several storm systems which brought widespread precipitation across portions of the South, the Tennessee and Ohio Valleys, and the Northeast. Warming temperatures across the region caused much of this precipitation to fall as rain, melting much of the snowpack built during the previous week in the process. This precipitation led to some modest improvements to drought and abnormal dryness, though more widespread drought reductions were limited due to frozen soils and streams across New England, and groundwater conditions that are slower to respond to precipitation across the mid-Atlantic region. Dry conditions and above-normal temperatures led to degradations across much of Florida.

Northeast

A series of storm systems brought widespread precipitation to the Northeast Region, with most locations receiving at least 0.5 inches of liquid equivalent, and greater amounts extending from Delaware and Maryland's Eastern Shore through New Jersey, the lower Hudson Valley, and southern New England. Warming temperatures ahead of the strongest cold front allowed much of this precipitation to fall as rain, melting away a good portion of the snowpack that had accumulated late in the previous week. While the double input of new precipitation and snowmelt was beneficial, drought reductions were generally limited. This is due to several factors. Across New England, soils and streams have largely frozen over, limiting the potential for new precipitation to substantively alter soil moisture. Across the mid-Atlantic, while boosting topsoil moisture, the precipitation was largely insufficient to improve groundwater conditions and streamflow conditions. Therefore, drought improvements were limited to portions of eastern Maryland, Delaware, southeastern Pennsylvania, and southern New Jersey where precipitation totals were greater than 1 inch. Some reductions were also noted in north-central Pennsylvania and southern New York, based on improving SPI indicators. In contrast, D2 conditions expanded across the West Virginia Panhandle and western Maryland due to worsening streamflow and groundwater conditions.

Southeast

Across the Southeast, light to moderate precipitation (0.25 to 1 inch, locally heavier) fell across much of Alabama, portions of the eastern Florida Panhandle, across the Piedmont and southern Appalachians of Georgia and South Carolina, and much of North Carolina and Virginia. With temperatures ranging near normal on average through the week, this precipitation was largely insufficient to yield drought reductions, but did help prevent further degradations where it fell. Small areas of reductions are noted across southeastern Virginia, where accumulations exceeded an inch, as well as a small portion of Florida's Nature Coast. In contrast, drier conditions were noted across parts of northern Georgia, the remainder of Florida, and the coastal plain of Georgia and South Carolina. In these regions, some drought degradations did occur, including the higher elevations of northern Georgia, upstate South Carolina, far southeastern Georgia, and portions of the Florida Peninsula.

South

Following another week of subnormal precipitation, and with temperatures ranging above-normal, the South saw further drought degradations. A small area of heavier precipitation fell across far South Texas, resulting in reductions of D1 and D0, but drought expanded or intensified across the southern Texas plains, Hill Country, and the Piney Woods. Drought also intensified along the Red River Valley, and degradations were more widespread across the eastern two thirds of Oklahoma and Arkansas. In Arkansas, local observers continue to report drying lakes and ponds, while in Oklahoma, record warmth, strong winds, and persistently below-normal precipitation promoted expansion of D2 and D3 conditions. Across Tennessee, precipitation was more generous, and a swath of 1 inch or more fell across the central portion of the state where D0 conditions are currently in place. Despite this rainfall, 60- to 90-day precipitation levels remain below-normal, and SPI values continue to indicate dry conditions. Therefore, no improvements were made across Tennessee.

Midwest

Across the Midwest, clipper-type systems brought snowfall along the US-Canada border, with some Lake Effect snows falling across Michigan. Mostly dry conditions were observed for the remainder of the upper Mississippi Valley, Iowa, and western Missouri. Light precipitation fell east of the Mississippi River, with accumulations increasing towards the east. Overall, only small changes in the drought depiction were made across the region. A reassessment of impacts from prior precipitation led to reductions of D1 and D0 for northwestern Iowa, and a localized area of 0.5 inch precipitation following up on snowfall in early December allowed some modest reductions of D1 across southeastern Iowa and western Illinois. A small reduction of D0 also occurred across central Ohio, where accumulations exceeded 1 inch. In contrast, drier conditions and above-normal temperatures led to some degradation across south-central Missouri and far southern Illinois. No change in drought depiction was made across the upper Great Lakes region, where streams and soils have mostly frozen over.

High Plains

A lack of snow cover, much above-normal temperatures, and periods of strong winds led to an unusual amount of winter degradation across the High Plains region.D2 expanded across western Nebraska, with expansions of both D1 and D0 occurring across central and eastern parts of the state, where precipitation was generally less than 0.2 inch equivalent, and high temperatures soared as high as the 70s. A small area of D1 expanded across southeastern Kansas, and across Colorado, D4 was introduced to Eagle and Pitkin Counties. D0 expanded across the Plains of Wyoming, where warm temperatures, strong winds, and a record lack of snow cover promoted worsening impacts. Drought depictions remained unchanged across the Dakotas, where soils and streams have largely frozen for the winter.

West

Across the West, a series of atmospheric river events brought copious amounts of precipitation to the Pacific Northwest, with Washington and the northern Rockies continuing to be pounded, and precipitation extending further south later in the period to blanket western Oregon and northern California, which had missed out on heavy precipitation during AR events earlier in the month. While the repeated bouts of heavy precipitation continue to ease lingering drought conditions west of the Cascades, the picture is a bit more mixed at higher elevations. Temperatures during the period ranged above-normal, keeping snow elevations higher than average, which prevented the much above-average precipitation from building up substantial snowpacks in the Cascades and northern Sierras. In fact, SWE values remain below 50-percent of average across the Cascades, northern Sierras, Blue Mountains, and the Bitterroot Range, though conditions have started to improve across the remainder of the Northern Rockies. While not an immediate drought concern during the winter months, a lack of snow cover could present problems during the Spring and Summer melting season, and additional precipitation along with colder temperatures are needed to recover the snowpack conditions during this wet season. Based on these considerations, D1 and D0 were reduced along the western front of the Cascades and across small portions of the Intermountain West, but drought conditions were maintained across the higher elevations. A small area of D0 reduction was made across northern Montana, where recent storminess brought improvements to 30- and 60-day SPI values.

Caribbean

Widespread moderate rainfall overspread Puerto Rico and the northern Caribbean region during the past 7 days, which was sufficient to forestall degradation from D0 to D1 across Puerto Rico, but not enough to reduce the coverage of D0. Little to no rainfall fell across the southern coast of Puerto Rico, where some areas of D0 remain. Based on better conditions at the 30 to 90 day time scales, no D1 or expanded D0 was introduced into these drier areas.

At the start of the drought week, relatively light amounts of precipitation (generally less than a quarter-inch) were observed over the U.S. Virgin Islands, with significantly higher totals (about 1 inch) measured across Puerto Rico. Easterly winds were strongest across exposed coastal areas, but remained light and variable inland. These enhanced coastal winds were related to surface high pressure building over the North Atlantic. After a mostly dry and sunny Friday, patches of moisture returned to the region over the weekend, embedded in northeasterly flow, accompanied by the passage of a weak surface trough Sunday evening. Slightly drier conditions were observed towards the end of the drought week. Satellite-based (SPoRT GPM IMERG) precipitation estimates for the USVI so far this drought week (through 12z Dec 22) were generally under a half-inch.

Pacific

Across much of Alaska, a lack of snow cover has led to some difficulties in snow-based transportation, and an increased risk for ground freezing at greater depths than normal. Persistent northerly flow brought dry, colder than normal conditions to the state during the last week, which did not help snowpack conditions. Therefore, areas of D0 were introduced to portions of northwestern and southwestern Alaska due to the very low snow cover, which is unusual for this time of year.

Beneficial rainfall overspread much of Hawaii during the past week, with the highest accumulations occurring over the northwestern Islands. This precipitation resulted in widespread 1-category improvements across Niihau, Kauai and Oahu. Drought depictions remained unchanged across the southeastern islands, however, where drought conditions have been more entrenched and recent rainfall was insufficient to spark much improvement.

This drought week across the USAPI domain was characterized by a complex circulation pattern with many moving parts. These included trade-wind troughs, areas of trade-wind convergence, influences from the Near-Equatorial Trough (NET) and fragments of the InterTropical Convergence Zone (ITCZ), shear line fragments, the tail-end of a broad mid-latitude frontal system, and an occasional surge in the trade winds. These surges were associated with strengthening surface high pressure over Japan and the adjacent western North Pacific Ocean. They resulted in gusty winds, elevated seas, pulses of northeasterly swell, and increased surf along northern and eastern facing shorelines/reefs of many USAPI islands. For American Samoa south of the equator, a trough and associated weak area of low pressure brought heavy rainfall and elevated wind speeds to the territory late in the drought week.

Looking Ahead

During the next few days, atmospheric river activity will continue to bring copious moisture to the West, with the focus of heavy coastal rainfall and mountain snows shifting to California. Heavy precipitation is forecast to push inland to the Great Basin and portions of the Rockies. Later in the week, as the Pacific trough moves onshore and ridging builds over the northeastern Pacific, a break in AR activity is favored through the end of Week-1. Further east, persistent ridging is forecast for the central US, leading to mostly dry conditions and much above-normal temperatures for the Plains. Across the East, a blocking ridge retrograding towards Greenland from Europe will promote backdoor front activity and cold air damming, as well as providing a focus for additional precipitation and winter storm activity. The WPC 7-day QPF forecast shows precipitation amounts exceeding an inch across most of the Northeast Region, much of which may fall as snow or a wintery mix across the mid-Atlantic. Mostly dry conditions are favored for the Southeast during Week-1, with light rain possible across the lower Mississippi Valley. During Week-2, CPC forecast indicate enhanced chances for above-normal precipitation for the western third of the CONUS, with the highest probabilities across the Southwest. A slight tilt towards above-normal precipitation extends along the northern tier to the Great Lakes region, while below-average precipitation is favored for much of the eastern seaboard. Strong anomalous ridging favors above-normal temperatures for most of the CONUS, with blocking potentially leading to below-average temperatures across the Northeast. Above-normal precipitation is favored for Hawaii, while below-normal temperatures are favored for Alaska, with drier than normal conditions expected along the southern tier of the state.

Top 10 Ag Stories of 2025: No. 6 - Financial Losses, Labor Fears Tested America's Farmers in 2025

OMAHA (DTN) -- 2025 was always going to be a tough year for crop farmers and that's largely how it played out.

Crop farmers came into the year facing financial losses from the 2024 crop, while also waiting for details on $10 billion that eventually became the Emergency Commodity Assistance Program (ECAP), along with another $21.5 billion in aid for natural disaster losses in 2023 and 2024.

One small moment that stood out was in early February when 11 farmers testified before the U.S. Senate Agriculture Committee. Jennifer James, a rice farmer from Arkansas, was the last to speak, but her comments captured the real-life struggles many farmers were facing. Rice farmers were staring at four consecutive years of negative margins projected at $345 an acre, James said. In hindsight, the net returns for rice farmers actually came in worse than that.

"Nothing in my area pencils out," James told senators. "This is not economically sustainable."

Her voice trembled as James described the conversations her family was having at home.

"Just last week we had one of the most difficult business conversations my family has had. Is farming really worth it? What scares me is we are only one farm family of thousands having these conversations."

That was just one perspective from crop producers who grappled with financial strains.

Corn prices coming into 2025 were down 40% from two years earlier, but input prices such as fertilizer prices and interest rates on operating loans remained stubbornly high.

An analysis by economists at the University of Illinois shows the average corn farmer had a net return of minus $153 an acre this year. For wheat farmers it was minus $130 and for soybeans it was minus $83. Cotton farmers had net returns of minus $383 per acre, while rice net returns were minus $446 an acre. Sorghum farmers also had a net return of minus $160 an acre.

And yet, all eight fertilizers DTN tracks on a weekly basis are anywhere from 10% to 28% higher in price than they were a year ago.

In an interview with DTN last week, James said she was going over crop budgets for 2026.

"Everything is still negative, even much more negative than it was last year at this time. So, I question our sanity sometimes," she said.

LESS CAPITAL SPENDING

The losses translated into fewer farmers buying equipment as well. Despite the promise of new tax breaks for equipment expenses, capital spending by farmers across multiple Federal Reserve districts "declined at the fastest pace since early 2020," according to a recent Kansas City Fed report.

Manufacturers saw that decline in capital spending, and worker layoffs continued. Deere & Co.'s last quarterly report in November showed revenue was down $3.5 billion or 17% during the past year in Deere's Production & Precision Ag division. CNH Industrial reported weeks earlier that the company reduced production of Case IH and New Holland tractors as CNH lowered its outlook for the year.

"Market fundamentals remain uncertain and challenging for our farmers, and it is difficult to say if we will enter 2026 with more visibility or even more momentum," said CNH CEO Gerrit Marx on a November analysts' call, Reuters reported.

FARM FINANCE

While fewer farmers were in the market for equipment, farmers still increased their loan needs in 2025.

Agricultural banks reported during the past year that farm loan balances are up 5% at more than half of all agricultural banks while about one-quarter of those banks saw farm loan balances increase 10%. Debt is rising at agricultural banks for both real estate and non-real estate loans, according to a Kansas City Fed report.

One in five banks in the Chicago Fed region also has raised their collateral requirements for farm loans over the past year while none eased their collateral requirements.

Delinquency rates for farm loans remain low, about 1.3% overall, but the delinquency rates continue to tick upward slightly as well.

LABOR-IMMIGRATION INTERWINED

Agricultural labor has been a long-standing crisis that became more political and controversial as the Trump administration launched its mass deportation plans.

The spring and summer were filled with videos of farm raids, especially in California where the Trump administration heightened immigration enforcement efforts.

Lisa Tate, an orchard farmer in southern California, said on a call earlier this month with the group Grow It Here that her county just north of Los Angeles dealt with farm raids. The deportation push and aggressive tactics have left a lasting impression on farm workers and others in the community who are in the U.S. legally.

"It was very scary at first and there was a lot of outrage and a lot of protests out this way," Tate said. "The farming community was pretty concerned about it and we still are. But I'm also seeing it just -- within the community in general, just a change in the way we are doing things."

Area residents who would normally participate in a local nonprofits' Christmas events were leery about law enforcement and whether attending those events would be safe, Tate said.

"There have been some lasting -- I don't know -- cultural changes that started here and that's really sad, because we should really be valuing the people who are harvesting our crops and taking care of our food and getting it to us. They shouldn't be scared in their own communities."

Questions about farm raids often reached the White House. Trump repeatedly told his Cabinet and others that immigration officials needed to ensure farmers were not losing workers. Trump reiterated that message, though there was never any formal actions to back away from employer raids.

"I don't want to take people away from the farmers," Trump told a crowd in Iowa on July 3. The president added farm labor is hard work. "They bend over all day. We don't have too many people who can do that. They work very hard."

Zach Rutledge, an assistant professor at Michigan State University, said farm labor faces a growing problem of aging workers with as high as 40% of the workforce also are in the country illegally. Younger workers, both legal and undocumented, also are looking for better opportunities in other sectors. Farmers are experiencing a growing labor shortage that puts more pressure on wages and will also lead to higher food prices.

"We have an aging workforce that's not being replenished by younger immigrants the way it once was back in the '90s and the '80s," Rutledge said.

Contrary to popular belief, farmers didn't exactly lose large numbers of workers this year despite the immigration raids on farms in some states. There was a dramatic swing in the number of farm workers, which hit 2.37 million in March of 2025, but rapidly fell by 209,000 workers by May -- the sharpest decline in three years. Still, farm employment in November 2025 was 2.189 million, about 13,000 fewer jobs in agriculture than in November 2024, according to the Bureau of Labor Statistics and Federal Reserve Economic Data (FRED).

H-2A REGS AND PAY CUT

Farmers also got some needed reprieves when it comes to the temporary H-2A guestworker program. The Department of Labor (DOL) first ended enforcement of the Biden administration's 2024 "Farmworker Protection Rule" that had been blocked by court injunctions across at least 17 states.

After years of complaints about H-2A wages, USDA announced it would end its Agricultural Labor Survey that had collected wage data from 18,000 farmers nationally. Farmers who use H-2A workers blamed the survey for DOL's annual Adverse Effect Wage Rate changes that had increased how much producers are required to pay H-2A workers in each state.

In early October, DOL then changed how hourly wages are set for temporary foreign workers. The changes in the rule are projected to save H-2A employers $2.46 billion per year. United Farm Workers (UFW) sued the Trump administration in November over the wage changes, which the group argued would undercut wages for American farm workers and "risks dramatically expanding the exploitive H-2A" program.

Farmers are still waiting for Congress to reform the H-2A law to allow year-round workers. One of the biggest Republican advocates in Congress for reforming the program, Rep. Dan Newhouse, R-Wash., also announced he'll retire at the end of 2026 rather than seek re-election.

TARIFF BATTLES

High expenses and farm labor were just a few of the challenges farmers faced financially. There were also the non-stop tariff battles -- but that's a whole other story.

Idaho And Western United States SNOTEL Water Year (Oct 1) to Date Precipitation % of Normal (12/23)

Top 10 Ag Stories of 2025: No. 7 - A Year of Scorched Earth at USDA With Mass Firings, Canceled Grants and Reorganization

OMAHA (DTN) -- The Trump administration blew into Washington in January like a wildfire moving across a drought-stricken prairie.

They called it the Department of Government Efficiency -- DOGE. For five months, billionaire Elon Musk led a small group of computer-savvy contractors who took credit for canceling billions in contracts and indiscriminately firing federal employees. Musk left in May after a fallout with President Trump and DOGE now no longer exists. Musk and the administration now find themselves in myriad legal battles over DOGE's actions.

Still, the scorched-earth campaign created by DOGE continues to smolder.

The federal government's biggest organization for humanitarian assistance, the U.S. Agency for International Development (USAID), was dismantled with more than 80% of its programs eliminated. That forced Congress to move nearly $2 billion in annual farm commodity purchases for foreign aid to USDA as a way to try to ensure some food aid continues to flow. The full scale of cuts to USAID has not been made public by the State Department, but the food aid cuts forced the World Food Program to eliminate or drastically reduce aid to several countries this year.

Across the federal government, the Trump administration initially moved to terminate an estimated 200,000 or so "probationary" employees, meaning they had under two years of federal service.

DOGE staff had been at USDA for at least two weeks at that point. USDA called the initial terminations as a "workforce optimization" move.

A federal board ruled the firings were illegal, so the Trump administration fired the board.

Federal judges have ruled in multiple cases that the indiscriminate firing of thousands of probationary employees was illegal.

USDA's Office of Inspector General (OIG) on Dec. 17 released a report highlighting USDAs job terminations. By mid-June, USDA saw a total of 20,306 employees leave their jobs, the report stated.

In April, USDA and other federal departments gave veteran employees the option to quit with six months of pay if they chose to take it. As many as 15,114 USDA employees took the deferred resignation package (DRP).

Along with the DRP, another 1,636 USDA workers were terminated, 1,996 resigned and 1,280 retired.

That included roughly 5,860 employees in the U.S. Forest Service and 2,673 employees at the Natural Resources Conservation Service (NRCS), or 22% of staff. The Animal and Plant Health Inspection Service (APHIS) lost 2,105 employees, or 25% of its workforce. Rural Development lost 1,745 employees, or 36% of its employees. Another 1,647 employees at the Agricultural Research Service (ARS), or 23%, also left.

By the end of the year, the White House Office of Personnel Management posted there were 249,000 fewer federal employees than at the beginning of the year.

While trying to tackle avian influenza, USDA accidentally fired researchers who were working on the disease. At least 28 people were initially fired at the country's brand-new $1.25 billion National Bio and Agro-Defense Facility (NBAF) in Kansas -- the country's only level four biosecurity facility for foreign animal diseases.

A few weeks later, speaking to state agricultural directors, Rollins acknowledged some firings were rash though she backed efforts to slash USDA programs.

"I am proud to work with the Department of Government Efficiency, with DOGE, to streamline inefficiencies across the United States Department of Agriculture," Rollins said. "Does that mean we may make some mistakes along the way? Yes, but it also means we'll realize that and fix it while we're streamlining and making it more efficient."

DOGE initially moved to close 111 USDA office contracts across nine agencies, which included 36 NRCS offices and 22 Farm Service Agency offices. At one point, DOGE's website claimed it had canceled rental contracts in every federal office in one Arkansas county.

DOGE's role at USDA reached a point in late April that any FSA loan of $500,000 or more, or any loan to a corporate entity, would need approval by both the Secretary's office and DOGE. DTN detailed that FSA on average approves more than 1,000 loans over $500,000 annually.

USDA also froze payments for more than 1,000 contracts as Rollins and her team moved to eliminate contracts over terms that involve diversity, equity and inclusion (DEI). "We will end identity politics, identity celebrations and DEI here at USDA and across the federal government," Rollins said in her first speech to staff.

At the 100-day mark of the administration, Rollins said her staff had canceled 3,000 contracts and grants totaling $5.5 billion.

Conservation program payments to producers were also frozen as USDA tried to separate program dollars that came from the farm bill from those that came from the Inflation Reduction Act (IRA).

In early March, more than 10,000 farmers who grow food to sell locally lost $1.13 billion in federal support when USDA stated it would not honor Local Food Purchase Assistance (LFPA) and Local Food for Schools (LFS) cooperative agreements. The cuts came despite state agricultural directors calling for the programs to be permanently funded. Rollins said they were COVID-era programs that were no longer needed, though the administration at the same time was championing the importance of whole foods as part of the "Make America Healthy Again" agenda. By December, USDA was touting its work to promote local foods through farm-to-school programs.

In July, USDA leadership began plans to reorganize department around five regional hubs that would move more than 2,600 staff positions out of the Washington, D.C., area. That also includes closing the Beltsville, Maryland, Agricultural Research Center, known as BARC. The regional hub cities are: Raleigh, North Carolina; Kansas City, Missouri; Indianapolis, Indiana; Fort Collins, Colorado; and Salt Lake City, Utah.

Reflecting how the pendulum swings, USDA created a plan to reorganize and create regional centers to bring workers closer to the people they serve. That came after the administration in June ended $360 million in grants for 12 Regional Food Business Centers created in 2023 by the Biden administration to provide grants to help small farmers and rural businesses expand or develop their businesses. While some of the centers were still getting started, they had issued 450 grants that USDA said they would honor.

The administration's reorganization plans were delayed by a six-week federal shutdown this fall. In early December, USDA released a summary of public comments it received on reorganization. Out of 14,000 unique comments, the sentiment -- 82% -- was overwhelmingly negative. More than 2,185 comments were about BARC with 92% opposed to closing the research center despite arguments by leadership that the facility is outdated and costs too much to maintain and upgrade.

USDA plans to complete its reorganization by the end of 2026.