USTR targets Brazil deforestation as ag trade tensions deepen (Agri-Pulse): U.S. trade officials are questioning whether Brazil is doing enough to curb illegal deforestation as they pursue a Section 301 investigation that could lead to new tariffs. USTR general counsel Jennifer Thornton said evidence shows much of Brazil’s deforestation—estimated at more than 3,400 hectares per day in 2024—was illegal, and that land is often converted into crop and livestock production, giving Brazilian exports a cost advantage.
The investigation highlights growing trade tensions, as Brazil competes directly with the U.S. in beef, corn, and soybeans and has increasingly filled Chinese orders when U.S. exports face restrictions. America’s farm trade deficit with Brazil doubled between 2020 and 2024, reaching $7 billion. While Brazil has tightened some environmental laws, USTR says enforcement remains weak. Former USDA chief economist Joe Glauber noted the probe may mainly serve to justify tariffs the Trump administration already imposed on a large share of Brazilian exports.
Farmer sentiment falls in August as crop outlook weakens (Purdue University and CME Group): Farmer confidence weakened in August, with the Purdue University–CME Group Ag Economy Barometer slipping 10 points to 125. The decline was driven by a sharp drop in future expectations, which fell to their lowest level since last September. Views on current conditions held steady, but optimism varied widely: livestock producers—especially cattle operations—reported strong profitability, while crop farmers faced tighter margins.
Surveyed from August 11–15, farmers again signaled concern about their financial outlook. The Farm Financial Performance Index stayed low at 91, reflecting expectations of weaker incomes as USDA projects corn at $3.90/bu and soybeans at $10.10/bu—both below breakeven for many farms. Even so, the Farm Capital Investment Index climbed to 61, with livestock producers showing more willingness to invest than crop growers.
USDA to release and host webinar on September 2025 farm income report today (USDA): USDA’s Economic Research Service (ERS) releases farm income and balance sheet estimates and forecasts three times a year. These core statistical indicators provide guidance to policymakers, lenders, commodity organizations, farmers, and others interested in the financial status of the farm economy. ERS’ farm income statistics also inform the computation of agriculture’s contribution to the U.S. economy’s gross domestic product.
After the release today, the Department will host a webinar (1pm Eastern) with ERS Economist Carrie Litkowski presenting the September 2025 update to the farm sector income and wealth forecasts.