Hearing Highlights Ag Impact Of OBBB Tax Bill
SIMI VALLEY, CA -A recent congressional field hearing in California spotlighted how “The One, Big, Beautiful Bill” (OBBB) could deliver meaningful support to U.S. agriculture. Held July 26 at the Ronald Reagan Presidential Library, the House Ways and Means Committee invited producers and business leaders to testify on the bill’s impact.
California rancher Kevin Kester told lawmakers the OBBB Act would ease tax burdens for multi-generation operations. Provisions like a permanent estate tax exemption, full expensing for equipment, and continuation of the 20% small business deduction were cited as essential for producers facing tight margins and high capital needs. Kester also emphasized the bill’s livestock-specific measures, including expanded disaster aid, improved indemnity coverage, and investments in animal health.
The bill’s supporters said permanent tax certainty would help producers plan, invest, and survive market shocks. Farm groups also pointed to reforms that strengthen crop insurance, boost commodity reference prices, and expand support for new and beginning farmers.
Lawmakers said the hearing was a chance to bring rural voices into the national tax conversation. Ranchers, in turn, stressed the need for fiscal policies that reflect agricultural realities, from drought risk to generational transfer.
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Gulf-Japan Freight Rates Reach Nine-Month High
NASHVILLE, TN – Ocean freight rates for shipping grain from the U.S. Gulf to Japan climbed to $52.75 per metric ton as of July 17, the highest level since October 2024. Rates rose $4 from the previous week, marking the largest weekly increase since August 2023. Analysts attribute the rise to improved demand for iron ore in the Atlantic and strong grain export volumes from both the United States and Brazil.
USDA projects the U.S. will export a record 69.9 million metric tons of corn during the 2024/25 marketing year. As of mid-July, over 10 million tons remained unshipped. Brazil’s second corn harvest is underway, adding to global vessel demand. China also imported a record 12.26 million metric tons of soybeans in June—primarily from Brazil—further tightening vessel availability.
Grain inspections show U.S. wheat exports hit 732,000 metric tons the week ending July 17—the highest total since September 2022. Nigeria was the top destination. Class I railroads moved over 27,500 grain carloads during the week ending July 12, a 21% jump from the prior week. Grain barge traffic was also up sharply on the Mississippi River system.
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U.S. Farm Production Costs Dip Slightly in 2024
NASHVILLE, TN – Farm production expenditures in the U.S. totaled $477.6 billion in 2024, down nearly 1 percent from 2023, according to USDA’s annual Farm Production Expenditures report.
Feed, farm services, labor, and livestock-related expenses were the top four categories, accounting for nearly half of all costs. Feed led at $73.2 billion, followed by farm services at $55.5 billion, labor at $51.5 billion, and livestock and poultry at $49.6 billion.
Average spending per farm declined to $254,043. Diesel remained the largest fuel expense at $9.9 billion but fell 9 percent from last year.
By region, the Midwest led all others with $149.1 billion in total expenses, followed by the Plains at $111.6 billion and the West at $107.5 billion. California topped state-level spending at $48.6 billion, despite a nearly 8 percent drop from 2023.
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California Wine And Table Grape Acreage Declines
NASHVILLE, TN – California’s total grape acreage declined in 2024, with wine-type and table-type grape plantings both falling year over year. Wine-type grapes, which make up 70 percent of the state’s vineyard acreage, totaled 590,000 acres, down 3.3 percent from 2023 and 7 percent below the 2018–19 peak. Of these, 93 percent were bearing. Red wine grapes continued to dominate, led by Cabernet Sauvignon, Pinot Noir, and Zinfandel. Pinot Noir acreage has more than doubled since the early 2000s, while Zinfandel has declined.
Table-type grape acreage also fell 4 percent to 120,000 acres. Leading varieties included Flame Seedless, Autumn King, and Scarlet Royal. Meanwhile, fresh grape exports rebounded in 2024/25, rising 23 percent following hurricane damage the prior year. Imports also hit a record, topping 2 billion pounds, with most coming from Peru, Chile, and Mexico. USDA will issue a new production forecast in August. As of mid-July, movement data suggests a slower start to the 2025/26 season despite favorable early growing conditions.
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Cattle Economists React to Shrinking Herd, Reports
NASHVILLE, TN – Cattle economists across the South say USDA’s July Cattle Inventory and Cattle on Feed reports confirm continued herd contraction and limited signs of expansion. The 2025 calf crop is expected to be 1.3% smaller than last year, and beef cow inventory is down 1.2% from 2023. Economists note that fewer heifers are being retained for breeding, despite a drop in beef cow slaughter over the past year.
Dr. Will Secor of the University of Georgia sees signs that the cattle inventory may be near a bottom, but expansion appears slow. Dr. Kenny Burdine at the University of Kentucky says the drop in beef cow slaughter likely softened the decline in overall numbers, though retention remains sluggish. He notes Kentucky producers are still selling heifers due to high prices and land constraints.
University of Tennessee’s Andrew Griffith points out that despite fewer cows and a smaller calf crop, a rebound in beef cow numbers could arrive in 2026, weather permitting. Dr. Josh Maples of Mississippi State sees stabilization, not expansion, with lower heifer placements into feedlots offset by smaller calf crops. Regional observations from Florida and Arkansas echo similar caution about rebuilding, with tight calf supplies expected to support feeder prices.
