Capital Update – For the Week Ending June 19, 2026

Study: USMCA Helped Lower Food Prices

What happened: A study commissioned by the Agricultural Coalition for USMCA, of which NPPC is a member, showed the U.S.-Mexico-Canada Agreement – and its predecessor, the North American Free Trade Agreement – helped lower U.S. food prices over the past 20 years and could keep groceries affordable going forward.

The three USMCA signatories are in the process of reviewing the trade deal, and by July 1, must agree to renew it for 16 years, terminate it, or let it continue, with annual reviews, until 2036. President Trump has indicated the United States won’t renew the agreement.

The U.S. and Mexico this week held bilateral negotiations on agriculture issues. The two countries will meet again in July in Mexico City.

Conducted by Purdue University, the study found tariff reductions under NAFTA, then USMCA generated an estimated savings of about $700 a year – in today’s dollars – or 7% of total food expenditures per household.

It also showed how expanded North American trade improved the efficiency and stability of agricultural supply chains and benefited U.S. agricultural sectors that rely on exports, such as pork, and experienced lower domestic prices as trade barriers were lifted.

NPPC’s take: NPPC strongly supports renewal of USMCA, which has facilitated and streamlined the flow of commerce throughout North America. In 2025, for example, nearly $2.9 billion of U.S. pork was exported to Mexico and almost $759 million to Canada, making those countries the No. 1 and No. 4 markets for U.S. pork.

Why it matters: USMCA represents one of the largest trading blocs in the world, with more than 500 million people, $30 trillion in GDP, and a trade volume of $1.7 trillion. The agreement eliminated trade barriers for all three countries, increased regulatory transparency, and ensured science-based treatment of agricultural products.

2026 First Quarter U.S. Pork Exports Trending Upward

What happened: U.S. pork exports for the first quarter of the year were up by 4% in volume and value compared with the same period in 2025, according to data from the U.S. departments of Agriculture and Commerce and compiled by the U.S. Meat Export Federation. For the January through April timeframe, the United States shipped 1.04 million metric tons of pork valued at nearly $2.9 billion to foreign destinations.

For April, pork exports increased by 8% in volume at almost 20,000 MT and 6% in value at more than $718 million. Those numbers were from continued growth in exports to No. 1 market Mexico and to Central America, the Dominican Republic, Japan, the Philippines, and Taiwan. Even shipments to Canada and China, which have trended down in recent years, were up significantly from the same period last year.

(The April data, however, does not reflect the effects of restrictions on pork variety meats imposed in early May by Colombia and Mexico, following findings of pseudorabies in boars on a small Iowa operation. See related story.)

What it means for producers: The 2026 first-quarter exports have been robust, which is critical given U.S. pork producers’ dependence on exports. In 2025, U.S. pork exports achieved a second highest record at $8.4 billion, equating to an average of $66 in value from each hog marketed and accounting for about 25% of total production. Those exports supported more than 140,000 U.S. jobs.

Iowa Pseudorabies Outbreak Contained to One Farm

What happened: An outbreak of pseudorabies on an Iowa hog farm has been contained, with tests of surrounding hog farms showing no virus, according to the Iowa Department of Agriculture and Land Stewardship.

Pseudorabies, which can affect swine, cattle, sheep, goats, cats, dogs, and some wildlife, is a highly contagious disease that was eliminated from the U.S. commercial hog herd in 2004. PRV does not pose a risk to pork safety.

The disease was confirmed on a small commercial swine operation in central Iowa on April 30 by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service. It was traced back to five affected boars transported to the state from an outdoor facility in Texas. Those animals likely contracted the disease from feral swine.

The Iowa Department of Agriculture and Land Stewardship completed APHIS’s response protocols for PRV, including depopulating the affected farm and quarantining and testing farms within the surrounding area. These actions will allow the United States – and Iowa – to retain its pseudorabies disease-free trade status in commercial production.

In May, the outbreak prompted several countries, including Colombia and Mexico to ban the importation of U.S. pork variety meats, such as hearts, kidneys, livers, and tongues.

NPPC’s take: NPPC appreciates the swift action by Iowa Secretary of Agriculture Mike Naig and department staff, regulatory authorities, and stakeholders involved in the outbreak. The system in place to identify and respond to an incursion was tested and it worked as designed.

Why it matters:  The U.S. pork industry worked hard for decades to eradicate the pseudorabies virus from commercial production. These efforts resulted in improved market access because of our free status. It is critical for the welfare of our pigs and continuity of trade that the virus was contained and eliminated quickly.