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U.S. Eyes New Global Ag Aid as Feed the Future Funding Resumes and Trade Tensions with China Rise

U.S. reactivates global ag aid as Feed the Future labs await new funding and trade tensions with China spark calls for retaliatory tariffs.

AgroLatam U.S
Team of ag journalists covering U.S. farming. Key news on crops, inputs, markets, tech, and policy across the agri-food industry.

The U.S. State Department has confirmed it is working to issue new funding awards for Feed the Future Innovation Labs, signaling a potential restart for critical global food security projects that have been frozen for months. The delay stems from earlier administrative pauses in funding, leaving several labs - including Purdue University's Food Safety Innovation Lab - stalled since completing Phase I in 2024. A spokesperson stated the department is now developing "a new portfolio of awards," but did not provide a timeline or confirm whether previously shuttered labs will be reinstated.

Congress has already appropriated $72 million for these programs in the current fiscal year. However, a former USAID official warns the State Department may face challenges in spending the funds efficiently, especially if it launches a full open competition among universities to award new funding. "We now have 10 months before that money expires," said the former official, noting the agency may lack the staffing capacity to execute a full competition. Importantly, the department can legally direct new awards to previously active labs, bypassing the competitive process and potentially accelerating reactivation.

Meanwhile, U.S. agriculture trade policy is under renewed scrutiny on several fronts. In Brussels, the European Parliament is debating legislation to implement a trade deal that eliminates EU tariffs on U.S. fruits, and sets new tariff-rate quotas on pork, bison, dairy, and animal feed. A proposed amendment could sunset the deal in 18 months if broader terms aren't finalized, and the European Council wants safeguards in place to protect local producers from import surges. According to former U.S. trade negotiator Dan Mullaney, a safeguard clause would be compatible with the current agreement, as long as the EU coordinates any future trade response with Washington.

Tensions are also flaring over the Phase One Agreement with China. The Renewable Fuels Association (RFA) is urging the U.S. Trade Representative to impose reciprocal tariffs totaling $32 billion on Chinese ag imports. RFA President Geoff Cooper argues that China fell short by that amount in its Phase One ag purchase commitments, made under the first Trump administration. "China must be held to account for its failure and refusal to meet the terms," Cooper stated.

Ironically, the U.S. has recently reduced tariffs on some foreign ag products not produced domestically. USTR official Jamieson Greer defended the cuts as part of a broader strategy, saying they come after reaching a "critical mass" of favorable trade agreements.

Back in Europe, Spain's pork sector is under pressure as the Spanish military joins efforts to contain an outbreak of African swine fever near Barcelona. China briefly halted pork imports from Spain, its top EU supplier, but has resumed imports from unaffected zones.

In the U.S., governors and agency heads from across the Chesapeake Bay region are convening to adopt a revised Watershed Agreement that will guide cleanup and restoration efforts through 2040. Attendees include high-profile leaders from Maryland, Pennsylvania, Virginia, and Washington, D.C., alongside federal officials from EPA and the Chesapeake Bay Commission.

Also today, USDA is hosting a stakeholder listening session on its upcoming meat processing expansion grant program, part of broader efforts to bolster domestic capacity. The Flower Hill Institute, which coordinates technical assistance for meat and poultry infrastructure programs, will facilitate the two-hour session with support from USDA Rural Development officials.

Finally, a notable data point from the Renewable Fuels Association highlights changes in U.S. ethanol production. RFA Chief Economist Scott Richman told the California Air Resources Board that the land needed to meet California ethanol demand fell by 740,000 acres between 2011 and 2023 - a 20% drop. The reduction stems from rising corn yields and more efficient ethanol biorefineries, which now extract more ethanol per bushel.

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