As global trade instability continues, major agribusiness players and equipment manufacturers are feeling the pressure — and U.S. pork producers could soon feel it too. With lower crop trading profits, shifting biofuel policies, and the looming cost of new tariffs, the ripple effects are beginning to touch every corner of the agricultural economy.
Crop Traders Feel the Squeeze
Archer-Daniels-Midland (ADM) and Bunge Global SA, two of the largest players in global grain markets, recently posted their weakest second-quarter profits in years. The downturn stems from ongoing trade friction, particularly new rounds of tariffs, and uncertainty surrounding U.S. biofuel mandates.
ADM has warned that its 2025 full-year earnings could reach their lowest point since 2020. Bunge, although exceeding analyst estimates thanks to strong South American performance, still reported its worst second quarter since 2018.
Why does this matter for pork producers? Lower crop trading margins could lead to tighter supplies or price volatility in feed grains like corn and soybeans — a critical input cost for swine operations. And while ADM remains cautiously optimistic about a stronger second half due to potential biofuel policy boosts, the market remains unstable.
Rising Equipment Costs Could Squeeze Margins
Pork producers who rely on imported or high-spec farm equipment may face new cost burdens. Companies like AGCO and CNH Industrial — both key suppliers of tractors, combines, and feed handling equipment — are bracing for price increases due to President Trump’s tariffs on European and other foreign imports.
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