As the 119th Congress is sworn in on Friday, the shifting political landscape brings potential changes for U.S. agriculture policy. Republicans now hold a slim majority in both the House and Senate, creating an environment where bipartisanship may be critical to advancing legislative priorities, including the delayed Farm Bill and trade policy.

For agriculture, the makeup of the House Agriculture Committee is particularly significant. Representative Glenn “GT” Thompson (R-Penn.) will continue his role as chairman, with Rep. Angie Craig (D-Minn.) stepping in as the new ranking Democrat after defeating David Scott (D-Ga.). Craig’s focus on bringing new energy and midwestern priorities to the forefront could shape the committee’s priorities, contrasting with Scott’s more southern focus.

Across the Capitol, Sen. John Boozman (R-Ark.) will take over leadership of the committee after serving as Ranking Member last Congress. He will also see a new counterpart, with Sen. Amy Klobuchar (D-Minn.) leading her party after the retirement of Sen. Debbie Stabenow (D-Mich.).

Key legislative debates will likely include farm safety net programs, conservation funding, and trade policies. The House Freedom Caucus, which has already expressed skepticism about increased federal spending, may push for cuts to conservation and nutrition programs. This could set up clashes with Democrats, who have staunchly advocated for conservation and nutrition funding.

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Trade policy will also be a contentious issue. The Republican-led Congress may push for stricter trade enforcement against China and increased agricultural export support. Meanwhile, bipartisan interest in expanding market access for U.S. farmers could find common ground.

Potential port strike threatens U.S. meat exports

A looming contract deadline for port workers on the East and Gulf coasts is raising concerns about the potential disruption of U.S. meat exports. The U.S. Meat Export Federation warns that a failure to reach a new agreement by Jan. 15 could result in significant financial losses for the industry.

USMEF President and CEO Dan Halstrom estimates that a shutdown could cost over $100 million per week in beef and pork exports alone. "Forty-five percent of waterborne pork exports and 30% of beef exports originate from East or Gulf Coast ports," Halstrom noted, emphasizing the critical role these ports play in U.S. agricultural trade.

Negotiations between the International Longshoremen’s Association and the U.S. Maritime Alliance stalled in November after reaching a tentative wage agreement in October. With the contract extension nearing its expiration, exporters and ocean carriers are already taking precautions. Halstrom highlighted that surcharges are in place, and some ports may halt the acceptance of refrigerated cargo before the deadline due to uncertainty.

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The risk of a port strike threatens the U.S.’s reputation as a reliable supplier, particularly in key markets such as the Caribbean, Central America and Europe. Disruptions could drive buyers to seek alternative suppliers in regions like South America or Australia, potentially impacting the competitiveness of U.S. beef and pork on the global stage.

Farmers face uncertainty under conflicting Corporate Transparency Act rulings

The Corporate Transparency Act has created significant uncertainty and challenges to farmers due to conflicting court rulings over the holidays. The CTA, originally intended to curb financial crimes by increasing transparency in corporate ownership, requires corporations, limited liability companies and other entities to report information about their owners to the Financial Crimes Enforcement Network. However, a legal back-and-forth has sewn confusion in farm country about the status of the law.

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A federal court in Texas ruled Dec. 3 that the CTA violates the Constitution’s right to privacy, arguing that the reporting requirements could unnecessarily burden small businesses and family-owned entities. On Dec. 23, a federal appeals court said compliance with the law should move forward. Three days later, a separate panel of the same court overruled this decision, again suspending compliance requirements.

For agricultural operations structured as family farms, partnerships or small corporations, the reporting obligations can be particularly burdensome. Many of these entities lack the resources to navigate complex regulatory changes, let alone address conflicting legal interpretations.

After the legal dust settled, the current status of the CTA is that the reporting requirements are again on hold. Owners of small businesses should continue monitoring news reports and stay in close contact with their accountants and attorneys to ensure they remain in compliance should a further ruling change the current status.