Farm Bureau Press | August 22, 2025

Farm Bureau Press

USDA UNVEILS PLAN TO GUARD AGAINST NEW WORLD SCREWWORM

U.S. Secretary of Agriculture Brooke Rollins announced Aug. 15 the United States Department of Agriculture’s (USDA) plan to construct a new sterile fly production facility at the former Moore Air Force Base in Edinburg, Texas, to combat New World screwworm. Built in partnership with the U.S. Army Corps of Engineers, the site will be the first of its kind in the United States in decades, capable of producing up to 300 million sterile screwworm flies per week. By flooding the environment with sterile male flies, USDA aims to disrupt screwworm reproduction and suppress populations before they reach the U.S. border. This facility will work in tandem with existing plants in Panama and Mexico, which together produce about 200 million sterile flies weekly.

The USDA’s plan represents one of the largest federal investments in livestock protection in decades. The USDA will dedicate up to $750 million to build the new sterile fly production facility, along with $100 million for new technologies such as traps, lures and sterilization methods. An additional $8.5 million is being spent on a sterile insect dispersal facility at the same location in South Texas, while $21 million is going toward renovations at the Metapa, Mexico plant to boost its fly production by 60-100 million additional flies. Together, these efforts total nearly $880 million in combined spending to keep the screwworm out of the U.S.

Planned efforts include developing new traps and lures, stockpiling therapeutics and advancing sterilization techniques to scale quicker in response to outbreaks. Prevention efforts are also being expanded along the southern border. More horse-mounted USDA surveillance staff or “Tick Riders,” specially trained detection dogs and new vehicle-based inspection systems

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A PEEK INSIDE

H-2A Application Costs Jump 198% in Two Years, Page 2

Back to School with County Women’s Leadership Donations, Page 3

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NEW WORLD SCREWWORM

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will be deployed in coordination with U.S. Customs and Border Protection to monitor livestock, wildlife and companion animals for signs of infestation.

The effort extends beyond U.S. borders. USDA’s Animal and Plant Health Inspection Service is working closely with Mexico’s National Service of Agri-Food Health, Safety and Quality (SENASICA) to strengthen livestock movement controls, expand trapping and case reporting, and enhance animal health monitoring. These measures are intended to slow the pest’s northward march while allowing safe trade in healthy animals to continue. Meanwhile, the USDA’s Food Safety and Inspection Service will continue to closely inspect animals and carcasses at processing plants to ensure the safety of meat products.

The New World screwworm is one of the most destructive parasites in animal agriculture. Its larvae burrow into the flesh of warm-blooded animals, including cattle, sheep, horses, wildlife and even humans. With infestations reported as far north as Veracruz, Mexico (roughly 370 miles from Texas) the parasite’s return poses a serious threat. The cattle industry alone contributes more than $100 billion annually to the U.S. economy, underscoring what is at stake.

More information can be found in the USDA’s press release. Arkansas Farm Bureau will continue to follow this issue and report back as more information becomes available.

USDA PUBLIC COMMENT PERIOD REMAINS OPEN

The public comment period remains open for feedback on the United States Department of Agriculture’s (USDA) reorganization plan. Details on the plan, led by U.S. Secretary of Agriculture Brooke L. Rollins, can be found in the Secretary’s memorandum.

Arkansas Farm Bureau urges its members to respond and provide comments on the USDA Reorganization Plan. Comments can be submitted through Aug. 31. Feedback and comments can be emailed to reorganization@usda.gov.

FAMILY-OWNED FARMS ACCOUNT

Family farms comprise 95% of all U.S. farms, according to the 2022 Census of Agriculture Farm Typology report released today by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).

The farm typology report primarily focuses on the “family farm,” defined as any farm where the majority of the business is owned by the producer and individuals related to the producer. The report classifies all farms into unique categories based on two criteria: who owns the operation and gross cash farm income (GCFI). GCFI includes the producer’s sales of crops and livestock, fees for delivering commodities under production contracts, government payments, and farm-related income.

“Classifying America’s 1.9 million farms to better reflect their variety is critical to evaluating and reporting on U.S. agriculture,” said NASS Administrator Joseph Parsons. “Typology allows us to more meaningfully explore the demographics of who is farming and ranching today as well as their impact on the economy and communities around the country.”

Data shows that small family farms, those farms with a GCFI of less than $350,000 per year, account for 85% of all U.S. farms, 39% of total land in farms and 14% of the value of all agricultural products sold. Large-scale family farms (GCFI of $1 million or more) make up less than 4% of all U.S. farms but produce 51% of the value of all agricultural products.

Data also shows that the number of family farms decreased

H-2A APPLICATION COSTS JUMP

Applying for certifications and visas for H-2A temporary agricultural workers is the beginning of a long list of requirements for farmers who cannot find enough U.S. workers. Farmers who are unable to find domestic farmworkers may petition the U.S. government to grant foreign workers temporary work visas. This process requires interactions with three different federal agencies, all with independent application processes and corresponding fees.

Despite workers being required to apply for their visas themselves, H-2A employers bear the responsibility for paying or reimbursing all application fees associated with H-2A employment. In recent years, rapid increases to agency fees have hit farmers’ margins in nearly every step of the H-2A filing process. These fee increases are the latest in a long line of costly updates to H-2A employer requirements, most notably mandated wages that are increasing much faster than domestic wages or inflation. These costs rack up as farmers are waiting on much needed farmworkers during time sensitive planting and harvesting seasons, when an extra day of administrative delays could mean the difference between a perfect or lost crop, and

ACCOUNT FOR 95% OF U.S. FARMS

by 8% (almost 159,000 farms) since 2017. Mid-size, large and very large farms experienced increases of 2%, 40% and 65%, respectively. The number of small family farms fell 10% (low sales) and 7% (moderate sales), respectively.

Other key findings from the 2022 Census of Agriculture Farm Typology report include:

• Farm specialization varied between farm size groups. The majority (56%) of small farms specialized in cattle (31%) or other crops such as hay and forage production (25%).

Over 60,000 (55%) of mid-size farms specialized in grains and oilseeds, while large-scale farms were more varied in production specialization.

• Small family farms account for 44% of all direct sales to consumers, compared to 18% for mid-size family farms and 19% for large-scale family farms.

• Compared to producers on mid-size and large-scale family farms, small family farm producers are more likely to be women, age 65 or older, and report living on the farm operation. They were also more likely to report having served in the military, to work off the farm, and to be a new/ beginning farmer (farmed 10 years or less).

Access the full farm typology report and additional information such as maps and data highlights online. Typology data is also available here.

198% IN TWO YEARS

each additional dollar could threaten the farm’s financial future.

H-2A filing is a convoluted process that requires juggling three different federal agency requirements, employee responsibilities and hard-copy mailing timelines. In total, application fees for just one H-2A worker will soon cost at least $1,350, nearly $600 more than just two years ago, and take months to process. For an average contract for 20 workers, application fees alone will cost at least $10,640, up over 127% in two years, and employers are advised to begin their application process 75 days before they plan to start employing workers. The application process often requires attorney assistance to navigate, meaning the total costs and time extend past the checks and paperwork mailed to the federal government. These applications and fees are just the beginning of a long list of requirements for U.S. farmers and ranchers once employees reach the United States, including rapidly inflating wages, housing and transportation –some of which begins during the filing process.

More information about the H-2A application process is available on the Arkansas Agriculture blog.

MARKET NEWS

as of August 20, 2025

Contact Brandy Carroll brandy.carroll@arfb.com

Tyler Oxner tyler.oxner@arfb.com

Corn

This month’s WASDE report projected higher U.S. corn production as yield estimates received a sizable bump, keeping September and December futures under pressure. Both contracts are holding just above key support levels at $3.80 and $4.00, respectively. To spark upward momentum, prices would need to close above their 20-day moving averages, $3.85 for September and $4.07 for December. Crop condition ratings remain historically strong, with 71% of the crop rated good to excellent, the best in 9 years. Harvest activity is also expanding across the southern Corn Belt, adding pressure to the market. Louisiana’s harvest is 61% complete, Mississippi 31%, Georgia 30% and Arkansas 17%. Collectively, these four states are expected to produce 160 million more bushels of corn than last year, according to USDA.

Soybeans

November soybeans received a boost from this month’s WASDE report, filling the early-July chart gap and regaining the $10.00 level before meeting resistance near $10.40. Current price action suggests consolidation as traders wait for news of potential Chinese buying. For now, China continues to source South American soybeans at roughly a $1.00 premium to U.S. prices, slowing U.S. export demand during what is typically a key buying period. Monday’s crop progress report showed the national soybean condition rating steady at 68% good to excellent, the highest rating since 2020 and well above the five-year average.

Wheat

Wheat futures across all three exchanges have slipped to new lows, with Chicago and Kansas City breaking below $5.00 and Minneapolis also posting fresh contract lows before recovering slightly. While futures have staged a corrective bounce, technicals remain bearish with prices still hovering near five-year lows. A move above the 10-day moving average could spark some fund short covering, but rallies are likely to be seen as selling opportunities. Ongoing pressure comes from stiff global export competition and fresh supplies entering the market from the U.S. winter wheat harvest in the Plains. However, the 2025/26 marketing year has begun with strong export demand, and U.S. wheat values remain competitive globally, factors that could help stabilize futures in the weeks ahead.

Rice

Rice futures posted a bearish outside day in reaction to the August Crop Production Report. The market was expecting further cuts to acreage and production, with many believing the estimate of 1.229 million acres in Arkansas is too high. However, Arkansas acres were unchanged in the report and the U.S. saw an increase of 110,000 acres planted and an 80,000 acre increase in harvested acres. Production was increased by 3.5 million hundredweight to 208.50 million and beginning stocks were increased to 50.5 million hundredweight. Increases in domestic use and export projections offset the increase in production, and the ending stocks were pegged at 44.6 million cwt, down 100,000 cwt from the July report. The projected average long grain price was unchanged at $13. In Arkansas, 94% of the rice is heading and 4% has been harvested already. 69% of the crop is rated good to excellent, down from 73% just a week earlier. Technically, the September

contract has resistance at the spike high of $13.33, with support at the contract low of $12.15.

Cotton

December cotton futures posted a new three-week high in reaction to the August Crop Production Report but quickly retraced those gains after finding resistance at 68.5 cents in most active December. In the report, USDA lowered planted acres to 9.28 million, and harvested acres to 7.36 million, down from 10.12 million and 8.66 million respectively in the June 30 report. Despite a 53 lb. per acre increase in expected yield, the size of the crop was cut by 1.39 million bales, resulting in a projection of 13.21 million bales. Projected ending stocks were cut by one million bales, and the expected average on-farm price was 64 cents per pound. December has additional resistance at 69 cents, and support beginning at 66 cents.

Livestock and Poultry

In the August Supply and Demand Report, USDA reduced the forecast for red meat and poultry production for 2025. Beef, pork and turkey production were all reduced, while broiler production was raised reflecting recent production and hatchery data. Beef import projections were also lowered due to higher tariff rates and slower shipments. Cattle price forecasts for 2025 were again raised for both the third and fourth quarters based on recent strength and relatively strong demand for beef. Hog price forecasts were raised on recent prices and tightening supplies. Broiler prices are expected to decline during the last half of the year, but exports are expected to increase.

EDITOR

Shaylee Wallace Barber shaylee@arfb.com