Senate Ag Chairman John Boozman, R-Ark., says storms and wildfires across the country make it more likely Congress will consider a supplemental spending bill this year. That’s important for the ag sector because the supplemental bill could be a vehicle for providing more aid to producers.

“I think that there’s a good chance that we’re going to have a supplemental,” Boozman told Agri-Pulse on Wednesday. “We’ve got all the storm damage going on now. The fire damage in California. So, I think there’s a fair chance we’ll get something together.”

Farm groups continue to press Congress for $15 billion in additional farm aid – including $5 billion for specialty crop growers – last week after it was left out of the government spending package.

What’s next: Boozman said he couldn’t provide a timeline because the package is still “at the talking stage.”

E15 hopes renewed

Sen. Deb Fischer, R-Neb., says President Donald Trump’s pledge to keep supporting the ethanol industry’s fight for year-round E15 is “deeply encouraging.” Fischer is a longtime sponsor of legislation to authorize year-round sales of E15. She was referring to the president’s remarks in Iowa on Tuesday.  

“No mandate – just certainty for our farmers and the fulfillment of a promise to establish true American energy dominance,” she said. 

Trump told Iowans he’s confident that House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., will “soon” advance a legislative plan for E15. 

Sen. Pete Ricketts, R-Neb., said he was very unhappy E15 was left out of a spending package last week and that lawmakers are focused on finding a new vehicle to get the ethanol legislation passed. “This is really important for our farmers,” he told Agri-Pulse on Wednesday.  

Shutdown showdown 

The Senate is set to start voting on a package of funding measures needed to keep the full government running after Jan. 30.

But Democrats say the U.S. Homeland Security Department needs to be reined in after the shooting death of Alex Pretti in Minneapolis by federal immigration agents. Senate Minority Leader Chuck Schumer, D-N.Y., says his party is ready to vote for five of the six bills and set the DHS measure aside.

“Time is short. We shouldn’t waste time on failed votes right now or else the government will shut down,” Schumer said on the Senate floor Wednesday.  

Thune told reporters that White House officials and Democrats need to work out a resolution on DHS. He also noted that ICE is already funded for the current year, but holding up the Homeland Security budget bill would impact FEMA funding when much of the country is dealing with weather-related disruptions.

Republican Sen. John Kennedy, R-La., a member of the Appropriations Committee, said he supports removing DHS from the funding package as does Sen. Thom Tillis, R-N.C.

AP_Dec_22_Chuck_Schumer_closeup.jpgSen. Chuck Schumer, D-N.Y. (AP Photo/Jacquelyn Martin)

EU-India reach trade deal

The European Union and India have signed a free-trade agreement that lowers tariffs on some EU ag and food products.

India’s getting rid of its 45% tariff on European olive oil along with duties on sheep meat, confectionary products, breads, pastry, pasta, chocolates and pet food. Duties on alcoholic beverages are being reduced, and EU fruit exporters are getting “sizeable” tariff rate quotas, according to an EU release.

The EU is making no trade concessions on imports of sugar and ethanol, rice and soft wheat, beef and poultry, milk powders, bananas and honey. The EU also is maintaining its existing food safety standards.

Farmers for Free Trade announces USMCA roundtable series 

Farmers for Free Trade is launching what it calls a national USMCA roundtable series for farmers, trade experts, and lawmakers ahead of the trade agreement's 2026 review. FFT says in a news release that the roundtables will let farmers speak directly with elected representatives about how the U.S.-Mexico-Canada Agreement affects their operations.

"USMCA is the foundation of American agricultural trade, supporting farmers in every corner of the country," FFT Executive Director Brian Kuehl says in the release. "Mexico and Canada are our top two agricultural export markets, accounting for over $58 billion in annual exports."

The first three events kick off in February and March in San Antonio, Texas; Wisconsin's La Crosse-Eau Claire region; and southeastern Iowa's Quad Cities area. Additional locations will be announced throughout the spring and summer.

Take note: In 2024, Mexico was the top destination for U.S. agricultural exports at $30.3 billion, while Canada ranked second at $28.4 billion. The two nations account for approximately one-third of all U.S. agricultural exports.

Nestlé announces global collaborations on regenerative agriculture 

Nestlé is partnering with The Nature Conservancy and Goodwall, the social networking app designed for Gen Z, to advance regenerative agriculture and attract young farmers. Nestlé says in a news release that the collaboration builds on its Agriculture Framework, developed with TNC, to help farmers improve yields while protecting nature,

"Regenerative agriculture is essential to the long-term resilience of our business and the global food system," said Nestlé COO Stephanie Hart.

Nestlé says through Goodwall's platform, young people will access game-based learning about regenerative farming and connect with their peers to build more resilient food systems and secure the future of food. TNC CEO Jennifer Morris emphasized scaling "science-based solutions that restore ecosystems, protect biodiversity and strengthen farmer livelihoods."

EDF report targets five areas for climate-smart investment 

Five agricultural technology areas offer a huge opportunity for the private sector to advance climate-smart farming. So says a new report from the Environmental Defense Fund.

Those areas are, according to EDF’s “Innovations Report”:

  • Nutrient solutions that cut emissions and improve crop efficiency
  • Smart sensing tools that use AI and precision analytics to optimize inputs
  • Data platforms that help scale innovative conservation practices
  • Biotech advancements that strengthen crop resilience
  • Automation and machinery that reduce costs and emissions

Products in some of these areas are ready for sale, but others are in the beginning stage. The report notes, for example, that many sensing solutions are ready for the market, “particularly in high-value crops and large-scale commodity systems where [return on investment] from input optimization can be realized quickly.”

But the report also says adoption can be “limited by equipment costs, connectivity challenges in rural areas, and the need for technical expertise to interpret and act on data.”

Final Word

“I would not pick a fight going into USMCA to score some cheap political points. Either you are working for your own political career or you’re working for the Canadian people.” – Treasury Secretary Scott Bessent in an interview with CNBC Wednesday. He was asked whether Canada would face “consequences” in negotiations over the U.S.-Mexico-Canada Agreement because of Prime Minister Mark Carney’s remarks in Davos critical of President Trump.

Kim Chipman, Steve Davies, Lydia Johnson, Philip Brasher, and Bob Ellison contributed to today’s Daybreak