Trump Administration Sues California Over Farm Production Mandates

What happened: The Trump administration is suing California over state laws it says have contributed to the high price of eggs nationwide.

The administration’s lawsuit targets:

• California Proposition 2, a 2008 ballot initiative that set welfare standards for egg-laying hens, sows, and veal calves
• Assembly Bill 1437, which prohibited the sale in the state of eggs for human consumption that do not meet the Prop. 2 standards
• Proposition 12 ballot initiative in 2018, which set specific space requirements for hens, sows, and veal calves and banned in the state the sale of products from those animals – including the progeny of sows – if they were raised anywhere in housing that fails to meet the Prop. 12 standards.

Filed in the U.S. District Court for the Central District of California, the suit argues that regulating eggs is solely within the federal government’s purview under the 1970 Egg Products Inspection Act. That law set nationwide standards for eggs and egg products and prohibited states from imposing additional or different regulations on eggs.

The administration also argues that “Proposition 12 alone has caused a significant increase in egg prices and therefore led to a sizeable reduction in consumer surplus.”

NPPC’s take: “NPPC appreciates the Trump administration’s actions to make food affordable again,” said NPPC CEO Bryan Humphreys. “Tackling high food prices, especially for animal protein that nourishes healthy American diets, is essential to making America healthy again. Similar to the impact on eggs that this lawsuit seeks to address, Prop. 12 has resulted in grocery store prices for pork in California skyrocketing, with the price of some essential cuts rising over 40 percent since Prop. 12 took effect. NPPC will continue to encourage lawmakers to provide a federal solution for the imminent patchwork of conflicting state laws – not only for the sake of certainty for American pork producers but for lowering food prices as well.”

NPPC has led the charge to get Congress to fix the problems caused by Prop. 12, encouraging lawmakers to approve a federal solution for the imminent patchwork of conflicting state laws regulating farm production practices.

One Big, Beautiful Bill Becomes Law

What happened: On the Fourth of July, President Trump signed into law the One Big, Beautiful Bill, the fiscal 2026 budget reconciliation measure that includes provisions important to agriculture.

After the U.S. House approved it in May, the U.S. Senate on July 1 passed an amended version of the OBBB on a 50-50 vote, with Vice President J.D. Vance casting the tie-breaking vote. On July 3, the House then agreed on a 218-214 vote to the Senate’s amended bill. Among many other NPPC priorities, the legislation includes provisions for:

• Animal disease prevention and management through the National Animal Health Laboratory Network, the National Animal Disease Preparedness and Response Program, and the National Animal Vaccine Bank
• Research facilities, including for their construction, acquisition, modernization, or renovation
• The Feral Swine Eradication and Control Pilot Program

It also extends and enhances several tax measures that were part of President Trump’s 2017 Tax Cuts and Jobs Act and that were set to expire or begin phasing out at the end of this year, including:

• • Bonus depreciation, which allows the cost of qualified property to be deducted in the year it is placed into service rather than depreciated over several years
  • Estate tax exemption for estates valued above a certain amount that are subject to a 40% tax when passed to an heir
  • Section 179 expensing for vehicles, machinery, and equipment purchased for business use
  • Qualified business income deduction (Section 199A), which allows a reduction in certain business income for determining federal tax liability

NPPC’s take: NPPC strongly supported funding for animal disease prevention and management and extending and enhancing tax provisions that benefit producers. “The ‘One Big, Beautiful Bill’ is one of the most consequential pieces of legislation for American agriculture in years,” said NPPC President Duane Stateler, a pork producer from McComb, Ohio. “It helps producers protect our herds by fending off foreign animal diseases, and it also cuts red tape, allowing us to more easily pass down our farms to the next generation.”

Why it matters: Funds for preparing for, preventing, and responding to animal diseases such as African swine fever provide stability for producers and veterinarians subject to those risks. The extended and enhanced tax provisions help producers with profitability, financial stability, growth, and strategic business planning.

Business Groups Weigh in on Investigation into Mexican Tomato Imports

What happened: NPPC joined over 30 business groups and agricultural organizations in expressing concern over the Trump administration’s decision to withdraw from an agreement suspending an antidumping investigation on tomatoes from Mexico, a move that could negatively affect U.S. food prices and American jobs.

The U.S. Commerce Department in 1996 initiated the investigation to determine whether fresh tomato imports from Mexico were being sold in the United States at “less than fair value.” The investigation has been suspended through agreements with Mexican growers and exporters several times since, with the latest suspension – after a lapse in the previous agreement – coming in 2019. In mid-April, the department decided to withdraw from the 2019 agreement effective July 14 because it “failed to protect U.S. tomato growers from unfairly priced Mexican imports.” The agency also will impose a 17% duty on most tomatoes from Mexico.

In a letter to Commerce Secretary Howard Lutnick, the agricultural groups pointed out that U.S. growers and distributors import more than 2 million metric tons of tomatoes annually to meet U.S. demand and about 90% come from Mexico. They also noted that domestic tomato production has decreased because of adverse weather, labor shortages, high production costs, and other factors, “making trading partners like Mexico especially crucial.”

The organizations urged the administration to reconsider its decision to withdraw from the suspension agreement and negotiate a new agreement with Mexico.

NPPC’s take: NPPC supports the continued suspension of the antidumping investigation on Mexican tomatoes because withdrawing from the agreement would set a precedent that could affect other U.S. commodities, including pork.

Why it matters: A decrease in tomato imports resulting from tariffs would lead to food price inflation, with a 25% decrease causing an average 13% price increase for U.S. consumers, according to the agricultural organizations. Jobs throughout the agriculture and food sectors also would be adversely affected.

Nationwide, the import and sale of Mexican tomatoes generate an estimated $8.3 billion in economic impact. U.S.-owned companies employ nearly 50,000 workers in jobs supporting the movement of tomatoes from Mexico into regions around the country.

NPPC Wants Nigeria, South Africa Removed from Trade Program

What happened: NPPC submitted comments to the Office of the U.S. Trade Representative on the eligibility of sub-Saharan African nations to receive African Growth and Opportunity Act benefits. AGOA allows countries to export goods to the United States duty-free but requires beneficiaries of the trade program to provide “reasonable and equitable treatment” for U.S. imports.

Several AGOA beneficiary countries have barriers to their markets for U.S. goods and services, including Angola, Cote d’Ivoire, and Kenya. Two of the most recalcitrant nations with regard to U.S. pork imports are Nigeria and South Africa.

Despite being the second-largest AGOA beneficiary, Nigeria has continued to block market access for U.S. pork. While in 2022 it began allowing pork sausage imports from the United States, Nigeria has maintained an express prohibition against the importation of raw pork, as well as other meats and associated products. Its restrictions are not science based and violate provisions of the General Agreement on Tariffs and Trade.

South Africa is the largest non-oil beneficiary of AGOA but has several unwarranted, non-scientific provisions that limit imports of U.S. pork. The country bans pork offal and restricts pork because of Porcine Reproductive and Respiratory Syndrome, for example, even though there is no documented scientific case of PRRS being transmitted to domestic livestock through imported pork.

NPPC’s take: NPPC supports withholding AGOA benefits from countries that have barriers to U.S. goods and services. It also supports removing Nigeria and South Africa from the AGOA program until such time as they allow full market access for U.S. pork.

Why it matters: The objectives of AGOA are to expand U.S. trade and investment with sub-Saharan Africa, stimulate economic growth in the region, and facilitate African nations’ integration into the global economy. In many AGOA countries, pork is an important source of protein, making them potentially significant markets for U.S. pork.

North American Pork Groups Meet to Discuss Common Interests

What happened: Pork producer leaders from the national organizations representing the U.S., Canadian, and Mexican pork industries met to discuss their common interests of producing nutritious, sustainable, and affordable pork.

Hosted by the Canadian Pork Council (CPC), the trilateral meeting in Ontario, Canada, was attended by officers of the CPC, NPPC, and Opormex – the Mexican pork producer organization.

Among the topics discussed at the meeting were animal care and health issues, food security, and agricultural sustainability. Producers also committed to collaborate on efforts to reduce the risk of animal diseases, such as African swine fever.

NPPC’s take: “The North American pork industries, including both producers and pigs, are strongest when we collaborate, share challenges and solutions, and learn from one another,” said NPPC President and Ohio pork producer Duane Stateler. “This important trilateral meeting accomplishes just that.

“American pork producers appreciate the opportunity to meet annually with our neighbors to the north and south to find new ways to reaffirm our commitment to producing pork in the best ways possible.”

Why it matters: Canada, Mexico, and the United States have the largest trilateral agricultural trade relationship in the world, positioning North America as a critical region for supporting global food security.

The United States exported nearly $2.6 billion of pork to Mexico and almost $853 million to Canada in 2024. Mexico and Canada are the No. 1 and No. 4 export markets, respectively, for the U.S. pork industry.

Farm Groups Want USTR Chief Ag Negotiator Position Filled

What happened: A group of agricultural organizations asked the White House to fill the job of chief agricultural negotiator at the Office of the U.S. Trade Representative. In a letter to President Trump, nearly 30 farm organizations urged the expeditious nomination of a candidate for the vacant USTR position, which is critical to American agriculture during current ongoing reciprocal trade negotiations.

They expressed support for the Trump administration’s willingness to tackle tariff and non-tariff barriers to trade and address unfair trade practices that are “distorting markets and creating supply chain vulnerabilities in the U.S. food system.”

“To ensure that meaningful progress is made,” the groups said, “we seek the nomination and confirmation of a Chief Agricultural Negotiator to prioritize agriculture issues at the negotiating table and to secure wins for rural America.”

Whomever Trump picks for the post will need to be approved by the Senate Committee on Agriculture, Nutrition, and Forestry and the full Senate.

Why it matters: The USTR chief agricultural negotiator represents the interests of America’s farmers and ranchers and the U.S. government in trade talks with foreign nations, working to reduce trade barriers, open new markets, and eradicate unfair trade practices. She or he helps ensure that agricultural priorities are integrated early and consistently throughout the trade negotiation process and brings critical expertise to the full range of agricultural production, supply chain, and technical issues.

“Having a dedicated political appointee focused entirely on agricultural trade issues will lead to more effective and productive negotiations, ultimately resulting in increased demand for high-quality American products,” said the agricultural organizations in their letter to the president.

Organizations Want Clarification on Shipping of Foreign Cargo

What happened: A coalition of agricultural and business organizations, including NPPC, asked the Department of Homeland Security’s Customs and Border Protection (CBP) to clarify the treatment of cargo bound for the United States loaded and laded at foreign ports.

In a letter to Department of Homeland Security (DHS) Secretary Kristi Noem and CBP Commissioner Rodney Scott, more than 50 U.S. importers, exporters, transportation providers, and other supply chain stakeholders asked the Trump administration to conform to trade norms that loading is defined as loading on any vessel for the purpose of duty assessment. They pointed out that the transfer of cargo from one ocean-going ship by way of a relay or feeder vessel to another ocean-faring vessel historically has not subjected the cargo to an additional levy.

Recent guidance from CBP indicated that an exemption from a reciprocal tariff duty rate for “in-transit” cargo does not apply to goods loaded onto a relay or feeder vessel prior to April 5 for some products and April 9 for others when the cargo arrives at a U.S. port on a vessel other than the feeder vessel. CBP previously said in-transit eligibility should be based on the initial country of loading and export.

The groups also asked the administration to remove CBP and DHS non-uniformed personnel from the government’s personnel reduction plan. The personnel, they said, are critical for the successful planning and execution of tariff changes and enforcement. Why it matters: The U.S. trade community needs clarification regarding loading and lading of cargo at foreign ports to avoid increased costs and administrative burdens, as well as disruptions to the supply chain.

Groups Urge Senate to Approve Lindberg for Top USDA Trade Post

What happened: NPPC and other agriculture and business organizations urged the Senate to approve Luke Lindberg’s nomination to be Under Secretary for Trade and Foreign Agricultural Affairs in the U.S. Department of Agriculture.

In a letter to Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY), the groups asked that they “expedite a vote in favor of [Lindberg’s] confirmation,” noting that he “will be vital to the necessary trade and agriculture efforts to address these challenges [farmers and others face] head on.”

Lindberg currently is president and CEO of South Dakota Trade, which collaborates with local and regional agriculture groups to help the state’s producers and agricultural partners navigate the global trade landscape. He also serves on the board of directors of the National Association of District Export Councils and as an adviser with the U.S. Global Leadership Coalition. Lindberg was chief of staff and chief strategy officer at the U.S. Export-Import Bank during Trump’s first term in the White House.

Why it matters: Lindberg will represent USDA in trade negotiations and will play an important role in administering the agency’s international food assistance programs and be responsible for coordinating commodity procurement among various departments within USDA.