Key agricultural and environmental regulations face an uncertain future as administration change looms. The Biden administration has released its final regulatory agenda, outlining plans for various policy actions in the coming months. However, with the Trump administration set to take office soon, many of these regulations face an uncertain future. Several agricultural regulations are in the pipeline, particularly focusing on livestock markets and competitiveness:
- Fair and Competitive Livestock and Poultry Markets: USDA aims to finalize this rule by January 2025, clarifying its position on protecting producer welfare and advancing fair trade practices.
- Poultry Grower Payment Systems: Targeting problematic practices in poultry grower payment systems, this rule is also slated for January 2025 finalization.
- Price Discovery in Fed Cattle Markets: Currently in the comment period, the proposed rulemaking is targeted for September, leaving the final decision to the Trump administration.
- Cell-Cultured Meat Labeling: A proposed rule for labeling meat and poultry products made using cell-culture technology is expected soon, with final rulemaking scheduled for November 2025.
The Renewable Fuel Standard (RFS) levels and program changes are notable environmental regulations on the agenda:
- RFS: EPA plans to finalize applicable volumes and percentage standards for various biofuels beginning in 2026.
- RFS: Both the proposed rule (March 2025) and final rule (December 2025) will be handled by the Trump administration, potentially signaling shifts in biofuel policy.
- USDA’s Climate-Smart Agriculture Interim Rule Under Review at OMB. USDA’s interim final rule on technical guidelines for climate-smart agriculture crops used as biofuel feedstocks is listed under long-term actions, meaning no regulatory action was initially expected within 12 months. However, as it is under review at the Office of Management and Budget (OMB), USDA may advance it within that timeframe, especially with the Clean Fuel Production Credit (45Z) taking effect on Jan. 1. Notably, Treasury’s regulatory agenda omits 45Z, despite including credits for clean electricity investment (45Y), production (48E), and clean hydrogen production (45V). We have previously reported that before the Biden administration departs prior to the Jan. 20 Trump inauguration, some guidelines could be released with the incoming Trump administration making final rules and regulations on 45Z and other programs.
The incoming Trump administration will have several options for dealing with these proposed regulations:
- Finalize the regulations as proposed by the Biden administration.
- Modify the proposals before finalization.
- Delay or abandon the regulatory actions entirely.
Additionally, regulations finalized by the Biden administration since mid-August 2024 may be vulnerable to the Congressional Review Act (CRA), allowing the new Congress to potentially overturn these rules.
Of note: As the transition to Trump 2.0 approaches, stakeholders in agriculture and environmental sectors should prepare for potential policy shifts and regulatory changes under the new administration.
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