We’re getting the first clues as to how farm equipment may be affected by President Donald Trump’s tariffs. Major manufacturer AGCO reported Thursday it’s looking at price increases as an option, and CNH Industrial announced an increase in product prices “in the low single digits.”
But, like other companies, it’s also looking to control inventory. In the end, “Like most large industrials, we’re pulling every lever out there … to mitigate the cost given the dynamic situation we're in right now,” said Damon Audia, AGCO senior vice president and CFO.
Both AGCO and CNH Industrial reported significantly lower quarterly sales but saw their stock prices jump because their numbers beat analyst expectations.
Asked by investment analysts to estimate the net tariff impact to AGCO, Audia put it at 30 cents earnings per share. The company’s outlook for the next quarter is a $4 to $4.50 earnings per share.
Tariff critics eye further votes in Congress
Critics of Trump’s new tariffs see opportunities for further votes on the issue after the latest push to overturn the reciprocal tariffs failed in the Senate this week.
“We're going to pull out all the stops,” Senate Finance Committee ranking member Ron Wyden, D-Ore., told Agri-Pulse Thursday. Wyden added that he has “no higher priority” than uprooting Trump’s tariffs, which he argued are taking “a huge toll on the well-being of our people.”
Senate Minority Leader Chuck Schumer, D-N.Y., told reporters he is eyeing opportunities in the reconciliation bill to force Republicans to defend the duties.
“You're going to see proposals to undo the tariffs” as part of that process, he said.
Meanwhile, Sen. Tim Kaine, D-Va., believes there may be openings during the dealmaking process to force votes. He told Agri-Pulse that the administration may have to issue new emergency declarations to lower reciprocal duties, which could offer new opportunities to challenge the economic emergencies on the Senate floor. He also argued that Congress should have to approve any new trade deal.
“We are looking at that as sort of a next set of steps, but we haven't made decisions yet,” he said.
Read more at Agri-Pulse.com
Mega-MAHA bill advances in state legislature
A bill that takes aim at seed oils, food chemicals, dyes and additives advanced out of a Louisiana state Senate committee on Wednesday.
The package contains many proposals in line with Health Secretary Robert F. Kennedy Jr.’s vision to “Make America Healthy Again.” SB 14 was introduced into the state Senate in mid-April and cleared the Committee on Health and Welfare in a 4-3 vote.
If passed, the bill requires Louisiana to apply for a federal waiver through the USDA to restrict SNAP purchases of sweetened beverages. It also prohibits a list of food dyes and artificial sweeteners from school meals. Similar bills have appeared in other states.
Uniquely, the Louisiana bill also includes labeling requirements for certain products. If passed, restaurants would have to disclose if they cook with seed oils. Additionally, food packages would have to include a warning that the product “may be harmful to your health” if it includes certain ingredients that are banned in other countries.
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“As an industry committed to nutrition, transparency, and public health, the facts on heart-healthy oils like plant-based seed oils remain unchanged: they are safe, beneficial, widely recommended by health experts, and preferred by many consumers,” said Devin Mogler, president and CEO of the National Oilseed Processors Association, in a statement responding to the bill.
Meanwhile: Santa Cruz, California, implemented a 2-cents-per-ounce tax on sugary drinks on Thursday. Voters first approved the tax in 2018, but it was blocked by a state preemption law. A state court struck down the penalty provision of that law in 2023, and Santa Cruz is the first city to act on a local sugary drink tax since then.
The tax applies to sodas, iced teas, sports drinks and any other nonalcoholic beverage with an added caloric sweetener that has 40 calories or more per 12 fluid ounces. There is an exemption for small businesses with less than $500,000 in gross receipts annually.
Senator pushing for short 45Z extension in reconciliation
Sen. Jerry Moran, R-Kan., told Agri-Pulse he is lobbying for an extension of the 45Z tax credit for clean fuel producers in the reconciliation process.
The incentive was created in the Inflation Reduction Act but was only set for three years, which biofuel and sustainable aviation fuel groups have argued is too short to provide certainty. Moran said he is pushing to extend the credit to five years.
Moran said this effort is a work in progress and the Senate is still waiting to see how the House portion of reconciliation plays out.
“But it seems like it’s not outside the realm of possibility,” Moran said of including the extension.
Biofuel and commodity groups recently welcomed the reintroduction of a bipartisan bill that would extend 45Z to a total of 10 years.
Keep in mind: Not all Republicans are on board with even keeping 45Z and other IRA incentives. Members from farm states like Iowa have encouraged leadership for months to take a “scalpel” approach to the IRA credits rather than a sledgehammer. But members from the Freedom Caucus have continued to call for a full repeal of the climate package incentives.
“End the Green New Deal subsidies. All of them!” Sen. Mike Lee, R-Utah, wrote in a social media post Thursday.
US dairy signs deal with Indonesia to boost trade
Multiple U.S. dairy groups have inked a deal with the Indonesian Chamber of Commerce, known as KADIN, to support cross-border dairy trade.
The National Milk Producers Federation, U.S. Dairy Export Council and KADIN signed a memorandum of understanding Thursday, according to an NMPF statement.
The deal fosters collaboration on putting more dairy into a public meal program, dairy facility registrations, data and information sharing, and joint communication campaigns around dairy nutrition.
CoBank: Mexico to surpass Canada as top US ag export destination
Mexico’s post-pandemic economic recovery and emerging manufacturing sector are likely to propel the country to the top U.S. ag export destination in 2025, according to CoBank.
New research says Mexico is on track to import more U.S. ag products than Canada this year, despite its slowing economy and weaker currency.
Rising feed demand for the country’s growing pork, chicken and beef industries is partly to blame, CoBank says. As is an ongoing drought that continues to subdue crop yields.
“The economic boom has allowed consumers to expand their traditional diet, and U.S. food and agricultural producers are helping meet Mexico’s growing demand for more meat, poultry, dairy, processed foods and feed grains,” the report reads.
Final word
“There’s the what you’d like to have … and then there’s other solutions all in the middle. And so we’ll just see what we can come up with. That’s what all these negotiations are about is trying to find something that maybe everybody’s not totally happy with, but they can live with.” — Sen. John Boozman, R-Ark., on a possible extension of the 45Z credit.
