What's Happening?
Seth Meyer, the outgoing USDA Chief Economist, reviewed the agricultural challenges and successes of 2025. The year was marked by significant biological threats, including the Highly Pathogenic Avian Influenza affecting poultry supplies and the northward
movement of the New World Screwworm threatening U.S. cattle. Despite these challenges, the livestock sector saw record-high prices for feeder and fed cattle, driven by strong consumer demand for beef. The crop sector faced financial difficulties due to falling commodity prices and high input costs, squeezing producer margins. Trade disruptions further complicated the situation, prompting the USDA to introduce assistance programs to support producers.
Why It's Important?
The developments in 2025 highlight the resilience of the U.S. agricultural sector in the face of biological threats and economic pressures. The record-high livestock prices indicate robust consumer demand, which supports the overall protein market. However, the financial strain on crop producers due to high input costs and trade disruptions underscores the need for effective policy interventions. The USDA's assistance programs aim to bridge the gap until more comprehensive safety net programs are available, reflecting the importance of government support in maintaining agricultural stability.
What's Next?
As the agricultural sector moves into 2026, it will continue to navigate the complexities of global trade dynamics and biological threats. The USDA's upcoming 'bridge payments' are expected to provide temporary relief to producers, while longer-term solutions are developed. The sector will also need to adapt to potential shifts in consumer demand and international market conditions, which could influence pricing and production strategies.
