What's Happening?
Seth Meyer, the outgoing USDA Chief Economist, has reviewed the agricultural challenges and developments of 2025 as he transitions to a new role at the University of Missouri’s Food and Agricultural Policy Research Institute. The year was marked by significant
volatility, including disease outbreaks in the livestock sector and unexpected shifts in crop production. Highly Pathogenic Avian Influenza impacted poultry supplies, while the New World Screwworm posed a threat to cattle. Despite these challenges, livestock producers experienced record-high prices due to strong consumer demand for beef. In the crop sector, while commodity prices fell, input costs remained high, squeezing margins for producers. The USDA introduced ad hoc assistance programs to support farmers, including 'bridge payments' until more comprehensive safety net programs become available. Notably, there were unexpected increases in corn acreage, affecting soybean production, and the U.S. maintained strong export programs for corn and wheat despite global competition.
Why It's Important?
The review of 2025 by Seth Meyer highlights the resilience and adaptability of the U.S. agricultural sector in the face of significant challenges. The livestock industry's ability to maintain high prices despite disease pressures underscores the importance of consumer demand in stabilizing markets. For crop producers, the financial strain from high input costs and falling commodity prices illustrates the need for effective policy interventions, such as the USDA's assistance programs. These developments have implications for U.S. agricultural policy, trade dynamics, and the economic well-being of rural communities. The unexpected shifts in crop production and strong export performance also reflect the complex interplay of domestic and international market forces that U.S. agriculture must navigate.
What's Next?
As the agricultural sector moves into 2026, stakeholders will be closely monitoring the implementation of the USDA's assistance programs and the impact of the 'One Big Beautiful Bill Act' on producer support. The industry will also need to address ongoing disease threats and adapt to changing market conditions. Policymakers and industry leaders may focus on enhancing biosecurity measures and exploring new trade opportunities to sustain growth. Additionally, the sector will likely continue to innovate in response to environmental and economic pressures, potentially leading to shifts in production practices and market strategies.
