In the news affecting a dairy producer's bottom line the first week of February 2026:
- Agriculture groups join forces for USMCA renewal
- Farmer sentiment drops sharply
- GDT index takes another big jump
- February FSA interest rates slightly higher
- ‘Plant a Seed’ campaign open now to support dairy education, outreach
- Livestock Marketing Association opens applications for 2026 scholarships
- El Salvador and Guatemala agreements strengthen protections for U.S. dairy exports
Agriculture groups join forces for USMCA renewal
Forty farm and agricultural groups, and growing, launched the Agricultural Coalition for the United-States-Mexico-Canada Agreement (USMCA), underscoring the accord’s vital role as an economic engine for the U.S. farm economy and calling for its renewal with targeted improvements.
As part of the launch, the group unveiled a new website and kicked off an aggressive ad campaign in the nation’s capital, all of which is designed to promote the benefits afforded to the U.S. food and agriculture sector under the USMCA as the administration approaches the 2026 mandatory review.
Under the agreement, leaders of all three nations must begin a formal review by July 2026 to determine whether to renew. If renewed, the agreement would remain in effect for an additional 16 years, with another review scheduled in 2032. If the countries fail to reach an agreement and move to terminate, USMCA will expire in 2036. The review could also enter a period of annual consultations with no clear path forward, creating significant uncertainty for the farm economy.
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) joined the launch of the coalition, voicing the importance of the trade agreement to U.S. dairy.
“USMCA has helped grow vital export opportunities that support dairy farm incomes across the country,” Gregg Doud, president and CEO of NMPF, said. “Unfortunately, Canada has clearly not upheld their end of the deal, and Mexico needs to fully implement USMCA commitments to respect our use of common cheese names. We look forward to working with the administration during the review to ensure our trading partners honor their commitments so the agreement can best deliver for dairy farmers.”
“USMCA has been critical to maintaining strong export demand for U.S. dairy farmers, manufacturers and exporters, providing greater opportunities in the Mexican market in particular,” Krysta Harden, president and CEO of USDEC, said. “At the same time, persistent market access barriers, particularly in Canada, limit the full potential of the agreement and must be addressed to ensure that U.S. dairy exporters receive the benefits they were promised.”
The U.S. dairy industry exported about $3.6 billion in dairy products to Canada and Mexico in 2024, which accounts for about 44% of total export value. At the same time, USMCA has fallen short in certain key areas.
NMPF and USDEC will continue to work with trade negotiators to address USMCA noncompliance areas ahead of the July 1 joint review deadline.
Farmer sentiment drops sharply
Farmer sentiment weakened sharply in January due to a modest decline in producers’ outlook over the next five years, according to the latest Purdue University/CME Group Ag Economy Barometer.
“One-half of the producers surveyed reported that their farm operations were worse off than a year ago. Moreover, looking ahead 12 months, 30 percent expected worse financial performance, compared to 20 percent who expected better financial performance,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Respondents also expressed greater concerns about agricultural exports compared to last month.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released Feb. 3, reflect ag producer outlooks as of Jan. 12-16.
GDT index takes another big jump
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up 6.7% in the auction held Feb 3. This carries on the trend of higher trading events since the start of the year.
Compared to the previous auction, prices for individual product categories were higher. Mozzarella and skim milk powder were both up 10.6%. Butter was up 8.8%, and buttermilk powder as up 6.4%. Whole milk powder and anhydrous milkfat were up around 5%. Cheddar cheese was 3.8% higher, and lactose was up 1.5%.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is Feb. 17.
February FSA interest rates slightly higher
The announced interest rates on loans through the USDA’s FSA are slightly higher. As we begin February 2026, interest rates for operating and ownership loans (compared to January) are as follows:
- Farm operating loans (direct): 4.625%, unchanged
- Farm ownership loans (direct): 5.75%, up from 5.625%
- Farm ownership loans (direct, joint financing): 3.75%, up from 3.625%
- Farm ownership loans (down payment): 1.75%, up from 1.625%
- Emergency loan (amount of actual loss): 3.75%, unchanged
The FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. For more information, producers can contact their local USDA Service Center.
‘Plant a Seed’ campaign open now to support dairy education, outreach
The ninth annual “Plant a Seed” campaign supporting Dairy’s Foundation officially launched on Feb. 1, bringing the dairy community together to invest in education, sustainability and outreach programs that move the industry forward.
The 2026 campaign goal is $70,000 with every dollar going directly to programs that develop dairy leaders, strengthen on-farm skills and build stronger connection between dairy producers and their communities.
Three industry heroes – Pipping Concrete, Grassland Dairy Products and Mullins Cheese – have stepped up as campaign champions to match donations made by individuals, farms and businesses during the campaign.
Donations can be made online or in person at the 2026 PDP Business Conference, March 4-5, at the Alliant Energy Center in Madison, Wisconsin.
Livestock Marketing Association opens applications for 2026 scholarships
The Livestock Marketing Association (LMA) has announced that applications are now open for its 2026 scholarship programs, offering two distinct opportunities to support students pursuing education and careers connected to the livestock marketing industry.
LMA will offer the Career and Academic Education Scholarship for traditional post‑secondary education pathways and the Auctioneer School Scholarship for individuals pursuing training in the auction method of marketing livestock.
Applications for both scholarship tracks are online.
All applications must be received, whether emailed or mailed, by March 13 at 4 p.m. CST. Incomplete or late submissions will not be considered.
El Salvador and Guatemala agreements strengthen protections for U.S. dairy exports
NMPF, USDEC and Consortium for Common Food Names (CCFN) welcomed the United States’ signing of reciprocal trade agreements with El Salvador and Guatemala, underscoring the importance of reinforcing long-standing market access gains for U.S. dairy exporters and preventing the emergence of new trade barriers.
As outlined in the agreements, El Salvador and Guatemala have both committed to address and prevent barriers to U.S. agricultural products, including dairy. These obligations include recognition of U.S. regulatory oversight and acceptance of currently agreed certificates issued by U.S. regulatory authorities, a prohibition on introducing a facility registration requirement for U.S. dairy products, and streamlining of product registration requirements, which are critical elements for ensuring predictable and fair market access for all U.S. dairy exports.
The two countries have also committed to ensuring that market access for U.S. agricultural exporters will not be restricted due to the use of certain cheese and meat terms. These include 38 widely used dairy terms such as Parmesan, Gruyere, feta and Asiago, as well as 10 meat terms. This commitment provides important certainty for common name producers and exporters.
NMPF, USDEC and CCFN will continue working closely with the U.S. trade representative and U.S. government partners to monitor implementation of the agreement and to ensure that El Salvador and Guatemala fully meet their commitments to maintaining open and predictable access for U.S. dairy products and common name foods and beverages.
