Sen. John Boozman (AR-R) on the work ahead for the Senate Ag Committee in 2023 (Photo All Ag News)
South Korea Deal Brings New Market Access for Agriculture
WASHINGTON, DC – President Trump announced a “full and complete” trade deal with South Korea on July 30, which cuts threatened 25% tariffs to 15% in exchange for major investment commitments. South Korea will invest $350 billion in U.S.-owned projects and purchase $100 billion in American energy products. Importantly for agriculture, Seoul agreed to remove duties on U.S. cars, trucks, and agricultural goods. This move offers U.S. farmers access to captive markets amid tight global grain, meat, and ethanol trade.
South Korean officials reportedly declined to further open rice and beef markets, citing strong domestic farm protections. But the tariff relief on other ag goods, including grains and processed products, may allow U.S. exporters to regain momentum. Agriculture groups—including corn, meat, and soy interests—have welcomed the agreement as a boost to investor confidence and export durability.
With South Korea among the top ten U.S. ag markets, this deal helps solidify one more large trade channel ahead of a reciprocal tariff deadline that would have triggered broader tariffs.
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Thailand, Cambodia Trade Deals Aid U.S. Farmers’ Prospects
WASHINGTON, DC – The White House and Commerce Secretary Howard Lutnick announced trade agreements with Thailand and Cambodia on July 30, following a ceasefire between the two countries. The deals reportedly reduce or delay tariffs tied to an August 1 deadline, sparing agriculture exports from steep reciprocal duties.
In Thailand’s case, ongoing negotiations anticipate U.S. tariffs aligning with regional peers rather than a 36% penalty. Thailand has also agreed to import more U.S. corn to reduce feed costs, which may increase exports of U.S. grain. Cambodia is expected to receive reciprocal tariff relief as well, though final terms are still pending formal documentation.
For U.S. producers, opening or stabilizing trade channels with Southeast Asian markets supports exports of corn, soymeal, ethanol, and feed grains. Improved trade relations add momentum to regional ag demand and ease uncertainty for ranchers and processors seeking new outlets.
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USDA Defends Reorganization Plan Amid Senate Scrutiny
WASHINGTON, DC – The U.S. Department of Agriculture faced questions Wednesday from the Senate Agriculture Committee over its plan to relocate thousands of Washington-based employees to five regional hubs. USDA Deputy Secretary Stephen Vaden testified in support of the reorganization, saying the move would streamline operations, cut bureaucracy, and bring the agency closer to the producers it serves.
The plan, announced earlier this month, would shift about 4,600 USDA employees out of Washington, D.C., reducing the department’s presence in the capital by more than half. Vaden told lawmakers that decentralizing USDA operations would improve responsiveness, promote efficiency, and align more closely with the department’s mission to support rural America.
Senate Ag Chairman John Boozman of Arkansas acknowledged the need for reform but criticized the lack of consultation with Congress. He stressed the importance of preserving USDA’s reach in the field while avoiding disruption to services farmers rely on.
Democratic senators expressed stronger concerns. Ranking Member Amy Klobuchar of Minnesota warned that the proposal could harm the department’s research capacity, following years of staff attrition. She pointed to the 2019 relocation of ERS and NIFA, which a GAO report found had resulted in temporary productivity losses and delays in grant funding and research outputs.
Outside experts have also voiced skepticism. Former USDA Deputy Secretary Kathleen Merrigan noted that most USDA employees already work outside of Washington, making further decentralization less effective than advertised. Economist Chad Hart of Iowa State University cautioned that forced relocations could prompt a loss of experienced staff, further straining USDA’s ability to serve producers and implement the new farm bill.
USDA says the new hubs — expected to be located in Raleigh, Kansas City, Indianapolis, Fort Collins, and Salt Lake City — will strengthen service delivery and reduce long-term costs tied to underused federal buildings. Still, lawmakers on both sides of the aisle are asking for more data on how the changes will affect programs and staffing before the plan moves forward.
The Senate hearing made clear that while the reorganization may offer some benefits, questions remain about its timing, transparency, and overall impact on American agriculture.
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White House Ends De Minimis Policy For Imports
WASHINGTON, DC – President Donald Trump has signed an executive order ending duty-free treatment for low-value imported goods, effective August 29. The change eliminates the so-called “de minimis” exemption, which had allowed most shipments under $800 to enter the U.S. tariff-free with minimal inspection.
The White House says the policy had been exploited to import illicit narcotics, counterfeit items, and below-market goods that hurt American workers. Nearly 90% of all cargo seizures in FY2024 came from de minimis shipments, including 98% of narcotics cases. The new rule applies full tariffs to eligible shipments and was enacted ahead of a broader statutory repeal set for 2027.
The U.S. cotton industry has supported closing the loophole, citing heavy competition from foreign-made textiles entering duty-free under the exemption. Industry leaders say these shipments, often misdeclared or undervalued, undermine cotton prices and violate the spirit of trade protections.
Cotton groups, including the National Cotton Council, have asked for increased enforcement, arguing the change is necessary to support farm income and stop tariff evasion.
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Ethanol Production Climbs While Exports Surge Mid-Summer
NASHVILLE, TN – Ethanol production rose to a six-week high for the week ending July 25, reaching 1.10 million barrels per day. That’s 1.7% higher than the previous week and 2.1% above the three-year average, according to EIA data analyzed by the Renewable Fuels Association. Though output was slightly below last year’s level, the four-week average now stands at an annualized rate of 16.71 billion gallons.
Stocks climbed to 24.7 million barrels, the highest since mid-May, while gasoline supplied—used to measure fuel demand—rose 2.1% to 9.15 million barrels per day. Blender inputs ticked up slightly, as did ethanol exports, which jumped 42.6% to an estimated 154,000 barrels per day.
For context, U.S. ethanol exports have topped 1 billion gallons just halfway through the 2024/25 marketing year. The USDA expects a record 1.85 billion gallons in exports by year-end. Brazil has recently raised its ethanol blending mandate to 30%, while U.S. refiners challenge the current Renewable Fuel Standard mandates in court. Meanwhile, no ethanol imports have been recorded for over a year.
