USMCA Takes Effect: Welcome News for Struggling Farmers

Jul 01, 2020

The United States-Mexico-Canada Agreement (USMCA) goes into effect tomorrow, at a crucial time for farmers and ranchers struggling to recover from COVID-19 losses and a depressed agricultural economy. The expected $2 billion annual increase in U.S. agricultural exports and overall increase of $65 billion in gross domestic product will provide a welcome boost.

USDA estimates COVID-19 contributed to a $50 billion decline in commodity value alone for 2019, 2020 and 2021 production totals. This does not include all of agriculture’s losses, which would be billions more.

“The launch of the USMCA brings optimism to the country’s farmers and ranchers at a time they need it the most,” said American Farm Bureau Federation President Zippy Duvall. “We’re grateful for the opportunity to build on the success of the North American Free Trade Agreement, and we’re eager to see the results on America’s farms. It’s important that our neighbors uphold their end of the deal, so the agreement provides a stabilizing force amid the unpredictability of a pandemic in all three countries.”

Under USMCA, Canada will increase quotas on U.S. dairy products, benefitting American dairy farmers by $242 million. Canada will also treat wheat imports the same as domestic wheat for grading purposes. Mexico has also agreed that all grading standards for ag products will be non-discriminatory. The agreement also enhances science-based trading standards among the three nations.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.