Smithfield Foods to Build $1.3B South Dakota Pork Plant

Smithfield Foods to Build $1.3B South Dakota Pork Plant

LINKS

Link: Weekend Updates: House GOP Releases Farm Bill 2.0,
But Big Hurdles Remain

Link: Video: Wiesemeyer’s Perspectives, Feb. 13
Link: Audio: Wiesemeyer’s Perspectives, Feb. 13

Updates: Policy/News/Markets, Advance for Feb. 17, 2026

UP FRONT

TOP STORIES

— Brown’s comeback bid in Ohio Senate race remains competitive as polls tighten; Democrats eye Senate majority
Former Sen. Sherrod Brown (D-Ohio) is locked in a tight special election battle with Sen. Jon Husted (R-Ohio), with polling inside the margin of error and Brown holding a fundraising edge. The race could help decide Senate control — and potentially position Brown for the Senate Ag Committee gavel if Democrats reclaim the majority.

— Pricing pause ends — U.S. companies resume broad price hikes
After a late-2025 holiday reprieve, companies across apparel, food, industrial goods and services are raising prices again, citing tariffs, wage growth and surging health insurance costs. Data show a broad January reset, signaling a renewed early-year inflation pulse.

— India/U.S. trade talks enter final stretch
India’s chief negotiator heads to Washington as New Delhi expects U.S. tariffs on Indian goods to fall to 18%. The agreement could reshape supply-chain flows, deepen strategic ties, and test agricultural and sector-specific concessions.

— Colorado River states miss deadline — showdown over mandatory cuts looms
The seven basin states failed to reach agreement on post-2026 water rules, intensifying the split between Upper and Lower Basin states over mandatory reductions. Federal intervention — and possible litigation — now loom as drought pressures worsen.

FINANCIAL MARKETS

— Equities mixed as earnings season advances
The S&P 500 and Nasdaq are negative year-to-date, though 80% of reporting companies have met or exceeded earnings expectations. Markets brace for a heavy macro week.

— Asia session: Japan GDP shock carries policy implications
Japan’s weak 0.2% growth print strengthens the fiscal hand of PM Takaichi and raises questions about monetary alignment with the BOJ. Yen pressure persists as U.S.–Japan rate differentials remain wide.

— Global macro pause before data surge
Holiday closures in the U.S., Brazil and China precede a packed week featuring FOMC minutes, Q4 GDP, PCE inflation, PMIs, Walmart and Deere earnings — and potential Supreme Court tariff developments.

— Federal Reserve set to loosen bank rules to spur mortgage lending
The Fed plans to ease capital requirements tied to mortgage servicing, aiming to shift lending back toward banks from non-bank lenders — a move that could revive mortgage activity but raise regulatory debate.

— Economic, energy and USDA reports (Week of Feb. 16)
A dense calendar includes FOMC minutes, GDP, PCE, Deere earnings, USDA Outlook Forum projections, major energy reports, and key ag data including export sales and Cattle on Feed.

AG MARKETS

— Chicago wheat’s front-month shock
A dramatic March/May wheat spread inversion on record volume appears tied to near-term positioning and short covering rather than global supply stress. Fundamentals remain heavy with ample world stocks.

— China overtakes Russia as Brazil’s top fertilizer supplier
China narrowly surpassed Russia as Brazil’s largest fertilizer source in 2025, boosting supply but straining port logistics. Higher freight costs and weak crop-to-fertilizer exchange ratios are squeezing Brazilian farmers.

TRADE POLICY

— Carney taps Janice Charette as Canada’s chief trade negotiator to the U.S.
Prime Minister Mark Carney appointed veteran diplomat Janice Charette to lead Canada into the 2026 USMCA review, signaling Ottawa’s intent to approach the high-stakes trade talks with experienced leadership.

FOOD POLICY & FOOD INDUSTRY

— Smithfield Foods to build $1.3B South Dakota pork plant
Smithfield plans a major new Sioux Falls facility capable of processing 20,000 hogs per day, expanding Upper Midwest slaughter capacity. The investment underscores long-term U.S. pork infrastructure growth but may renew scrutiny of its Chinese ownership.

WEATHER

— NWS outlook: California rainfall risk; Upper Midwest snow; Sierra heavy totals
The National Weather Service flags excessive rainfall risk along parts of the Central and Southern California coast, mixed precipitation in the Upper Midwest, and heavy snowfall in the Sierra Nevada.

TOP STORIES — Brown’s comeback bid in Ohio Senate race remains competitive as polls tighten; Democrats eye Senate majorityFormer Sen. Sherrod Brown (D-Ohio) has built a strong fundraising lead and is in a close contest with Republican Sen. Jon Husted (R-Ohio), a race that could help determine control of the U.S. Senate — and potentially position Brown for the top spot on the Senate Ag Committee if Democrats win a majority In one of the nation’s most closely watched 2026 U.S. Senate contests, Sherrod Brown (D-Ohio) is running a competitive race against incumbent Jon Husted (R-Ohio) in the special election for the Ohio Senate seat, with recent polling and fundraising figures underscoring a tight battle that could help decide control of the chamber. Recent poll aggregates show Husted holding a slight edge, with approximately 48.6 % to Brown’s 46.5 % in the average of surveys, placing the contest well within the margin of error and underscoring its volatility. Individual polls throughout 2025 have shown the race ebbing and flowing, with some surveys putting Brown narrowly ahead and others showing Husted with a modest lead. Finances appear to be a bright spot for Brown’s campaign, as the former senator has significantly outpaced Husted in fundraising. According to Federal Election Commission filings, Brown raised roughly $7.3 million in the final quarter of 2025 alone, besting Husted’s comparable haul and leaving him with nearly $10 million in cash on hand as the election cycle intensifies. The competitive nature of the Ohio race has drawn national attention, with both parties investing early resources and strategic focus. Ohio’s Senate contest is widely seen as a key battleground that could influence which party controls the U.S. Senate in the 2026 midterms. If Brown prevails and the Democrats also flip enough seats to reclaim majority status in the Senate, he could position himself for greater influence in the chamber. As a senior Democrat with deep ties to agricultural policy — a longstanding hallmark of his legislative career — Brown would be well-poised to seek the chairmanship of the Senate Ag Committee, a coveted perch that shapes federal farm policy, rural development, and food programs. As the general election approaches, Brown’s campaign in Ohio highlights the enduring competitiveness of statewide races in a politically diverse state — and how individual contests could have broader ramifications for congressional leadership and policy direction in Washington. — Pricing pause ends — U.S. companies resume broad price hikesTariffs, wages and health insurance costs drive a new inflation pulse across retail and industrial sectors Prices are rising. According to a Feb. 15 report by the Wall Street Journal, (link) companies across apparel, food, tools, construction and services are restarting price increases after a brief holiday-season pause, citing higher tariffs, labor costs and rising health-insurance premiums as key drivers. From denim to spices to industrial repair contracts, businesses are implementing what executives describe as a “reset” following temporary discounting in late 2025. Apparel and consumer goods lead January increases. Major brands confirm a fresh round of price hikes:• Levi Strauss increased prices last month in response to tariffs and is implementing additional hikes this month.• Ribcage straight ankle women’s jeans: +$10 to $108• Original fit men’s jeans: +$5 to $84.50• Strategy: Larger increases on newer and premium products; smaller increases on entry-level items. Columbia Sportswear is raising spring and fall merchandise prices by high single digits after largely holding the line on fall and winter goods. CEO Tim Boyle said the goal is to offset the dollar impact of high tariffs. McCormick reported $70 million in tariff-related gross costs last year and expects another $50 million this year. The company began selective price hikes in September and is increasing some prices again this month, describing its approach as “surgical.” Economists cited in the report note January price increases were stronger than typical seasonal adjustments, particularly for electronics, appliances and other durable goods. Data show a post-holiday reset. Two pricing trackers cited in the Journal illustrate the shift:• Harvard professor Alberto Cavallo’s daily online pricing data show the most affordable imported goods are up 2.3% since late November lows.• The Adobe Digital Price Index recorded the largest monthly online price increase in 12 years in January, led by electronics, computers, appliances, furniture and bedding. Retail prices began declining in October, with steep cuts ahead of Black Friday, but turned upward after Christmas in what appears to be a broad-based “post-holiday reset.” The Journal highlights mounting pressure on smaller firms: • Structural Systems Repair Group (Cincinnati) is raising contract prices 10% to 15%, after steel tariffs pushed materials up roughly 10% and company health-care costs for 115 employees rose similarly.• Brooklyn housewares maker Sin is implementing across-the-board price increases and discontinuing certain higher-priced items it believes customers will resist.• Software consultancy Atomic Object raised hourly billing rates to $200, up from $180 at the end of 2024, citing double-digit health insurance increases (14% this year after 12% in 2025). A December survey from Vistage Worldwide found:• More than half of small business leaders plan price increases in the next three months.• Nearly 70% anticipate hikes of 4%–10%.• 10% expect increases exceeding 10%. The tariff-through-cost pipeline. Many companies had already raised prices in 2025 following tariff increases but paused late in the year to preserve holiday demand. Now, higher steel costs, commodity inflation, packaging expenses, wages and health-insurance premiums are compounding pressure. Executives say cost-cutting and supplier negotiations are no longer sufficient to offset the cumulative burden. However, the risk is clear: prior tariff-driven hikes dented U.S. sales for Stanley Black & Decker, particularly among lower-priced items — illustrating the delicate balance between margin protection and demand erosion. Bottom Line: The temporary pricing truce of late 2025 has ended. The combination of tariffs, wage growth and surging health-care costs is producing what looks like an early-year inflation pulse across multiple sectors. With both large corporations and small businesses signaling further increases in coming months, consumers may be facing a broader and more sustained upward repricing cycle than initially anticipated. — India/U.S. trade talks enter final stretchNew Delhi expects U.S. tariff cut to 18% as chief negotiator heads to Washington India’s chief trade negotiator is set to travel to Washington next week to finalize the long-negotiated trade agreement between New Delhi and the United States, according to Indian Trade Secretary Rajesh Agrawal. Agrawal said Monday that India expects the U.S. to reduce tariffs on Indian goods to 18% as early as this week, signaling that both sides are moving into the agreement’s closing phase after months of incremental progress. Tariff reset in focus. The anticipated 18% tariff level would represent a meaningful recalibration in U.S. trade treatment of Indian exports, particularly across sectors that have faced elevated duties under broader tariff authorities. While details remain under wraps, Indian officials have framed the move as a confidence-building step ahead of formal ratification. For New Delhi, securing tariff relief is critical to expanding exports in:• Pharmaceuticals• Textiles and apparel• Auto components• Select agricultural and specialty food products For Washington — under President Donald Trump — the agreement is part of a broader push to deepen strategic supply-chain ties with India while counterbalancing China’s manufacturing footprint in key sectors. Strategic and political timing. The visit comes at a moment of intensifying U.S./India economic alignment, particularly in:• Critical minerals• Semiconductor supply chains• Defense manufacturing cooperation• Energy and clean-fuel trade Finalizing the agreement now also carries political weight on both sides. In the U.S., the administration is seeking trade wins that can be framed as expanding market access while maintaining leverage. In India, Prime Minister Narendra Modi’s government is looking to position the country as a preferred global manufacturing alternative amid shifting geopolitical trade flows. What to watch. Key questions heading into next week’s talks:• Scope of tariff reductions — Are cuts broad-based or sector-specific?• Reciprocity — What concessions is India offering in return?• Agricultural access — Will sensitive farm sectors be included or excluded?• Enforcement mechanisms — Is this a binding framework or phased implementation? If finalized, the agreement would mark one of the most consequential bilateral trade developments between the two countries in years — and could reshape supply-chain investment flows across South Asia and the Indo-Pacific. — Colorado River states miss deadline — showdown over mandatory cuts loomsLower and Upper Basin split on mandatory reductions as 2026 operating rules near expiration The seven Colorado River Basin states have officially blown through a federally imposed Valentine’s Day deadline without reaching agreement on how to manage the river after current operating guidelines expire at the end of 2026 — raising the odds of federal intervention or eventual litigation. At the heart of the dispute: whether Upper Basin states — Colorado, New Mexico, Utah and Wyoming — will agree to mandatory water cuts during dry years, or whether reductions should remain voluntary. Lower Basin states — Nevada, Arizona and California — argue that without binding commitments from all seven states, downstream users will bear disproportionate pain. John Entsminger, Nevada’s lead negotiator and general manager of the Southern Nevada Water Authority, said negotiations have produced “almost no headway,” citing entrenched positions and years of stalled talks. He warned that states may need to “prepare to fight” if consensus collapses. The numbers behind the tension. Under the 1922 Colorado River Compact:• Lower Basin allocation: 7.5 million acre-feet• Upper Basin allocation: 7.5 million acre-feet But actual usage tells a different story:• Lower Basin states historically used nearly their full share, though conservation has cut usage from 7.4 million acre-feet in 2015 to just over 6 million in 2024.• Upper Basin usage has climbed in recent years — from 3.9 million acre-feet in 2021 to 4.4 million in 2024. Lower Basin governors — including Nevada Gov. Joe Lombardo — say they’ve already put real reductions on the table:• Arizona has offered a 27% cut• Nevada has offered 17%• California has offered 10% They argue all seven states must face mandatory reductions as drought intensifies. Upper Basin pushback. Upper Basin governors insist they lack the infrastructure to store water in wet years and are already constrained by hydrology. They also argue they lack the legal authority under the 1922 compact to impose significant additional cuts on water users. Their proposal leans on:• Voluntary conservation• Potential reservoir releases• Continued self-regulation But they have rejected binding, across-the-board mandatory reductions — the core demand of the Lower Basin. Climate and snowpack pressures. The backdrop is worsening. Climate-driven drought has battered the river for more than two decades. Record-low snowpack this winter is expected to further strain the system, which supplies:• 40 million people• 30 Native American tribes• Vast Western agricultural regions• Northern Mexico Lake Mead and Lake Powell remain historically low, and the so-called “bathtub ring” around reservoirs is now a permanent symbol of the crisis. What happens next? If no seven-state deal emerges:• The Bureau of Reclamation — under the Department of the Interior — must finalize a federal plan before the 2027 water year begins in October 2026.• That plan could impose steep compliance cuts, likely hitting Lower Basin states hardest.• Litigation is increasingly likely. Arizona has already allocated millions toward a legal defense fund. Entsminger’s warning signals where this may head: continued negotiation, yes — but with preparations underway for a courtroom battle. The clock is now ticking toward federal intervention. And absent compromise, the Colorado River’s future may ultimately be decided by Washington — or by judges — rather than the basin states themselves.

FINANCIAL MARKETS

— Equities today: Both the S&P 500 and Nasdaq composite are in the red for the year. As of Friday, 369 of the S&P 500 had reported earnings, with 80% beating or matching expectations, according to data provider LSEG.

China: Lunar New Year’s Eve (Feb 16) — Year of the Horse officially began today (Feb 17); markets remain closed through Feb 23.

Monday’s Asia session opened with three clear signals about where the region is heading — economic, strategic and political — and all three carry implications well beyond this week. Japan’s GDP miss is the headline macro shock, but the political signal may matter more than the growth print itself. The economy expanded at just 0.2% annualized — roughly one-eighth of consensus forecasts — handing Prime Minister Takaichi data-driven justification for her broader fiscal push, including the record ¥122 trillion budget and the consumption tax freeze. All eyes now turn to the 5 p.m. meeting between Takaichi and Bank of Japan Governor Ueda. The tone and substance of that discussion will indicate whether monetary policy is being more explicitly aligned with fiscal expansion — a shift that would represent the clearest departure from the Kuroda/Kishida framework since the launch of Abenomics. Of note: the yen faces renewed downward pressure, and the structural rate differential between Japan and the U.S. — the engine of the carry trade — remains firmly intact.

Global markets are/were in pause mode. Brazil is offline for Carnival (trading resumes Wednesday afternoon), the U.S. on Monday was closed for Presidents’ Day, and mainland China remains shut for Lunar New Year. But a jam-packed back half of the week is ahead: the FOMC minutes on Thursday, the long-awaited advance read on Q4 2025 GDP on Friday, December’s PCE deflator — the Fed’s preferred inflation gauge — plus S&P Global flash PMIs in rapid succession. Throw in Walmart and John Deere earnings before the bell Thursday, and the next 72 hours shape up as the most consequential stretch for global macro so far this year.

(1) FOMC Minutes (Wednesday) — The readout will expose the internal debate over rate-cut timing and balance sheet strategy as the Fed transitions to Chair Warsh. Any hawkish lean could force markets to rethink the two cuts currently priced in for 2026.

(2) Q4 GDP (Friday, 8:30 a.m. ET) — The long-delayed advance estimate, pushed back by the government shutdown. Q3 clocked in at a 4.4% annualized pace; consensus now sits near 1.8%, though the Atlanta Fed’s GDPNow had been tracking north of 5%. A blowout print risks a “too hot” reset in rate-cut expectations.

(3) December PCE (Friday) — The Fed’s preferred inflation gauge. Core PCE is expected around 3.1% year over year. Watch closely for any divergence from the softer CPI narrative.

(4) Walmart earnings (Thursday pre-market) — The cleanest read on U.S. consumer health at a moment when AI-driven disruption fears are pressuring tech and defensive names are quietly taking the lead.

(5) Deere will report fiscal Q1 2026 results and host its earnings call Thursday at ~9:00 a.m. Central / 10:00 a.m. ET. The webcast and replay will be available on Deere’s investor site. Consensus forecasts expect EPS around ~$1.90–$1.92 for the quarter, implying a significant year-over-year decline versus last year. Revenue expectations are roughly $7.5–$7.6 billion. The expected EPS drop reflects ongoing ag equipment demand pressure and cyclical headwinds in the sector. Markets have been cautious after Deere’s latest annual results showed softer profits and guidance.

Key things to watch:

• Order trends & dealer inventories — critical for ag equipment demand signals.

• Guidance for fiscal 2026 — whether Deere sees stabilization or further pressure.

• Margin trajectory — given cost and pricing dynamics in machinery.

(6) USDA’S outlook conference is Thursday and Friday. For corn, their thoughts on acreage for the next crop year may be the most important variable.

(7) On Friday, the U.S. Supreme Court reconvenes, with markets watching for a potential ruling on President Trump’s tariffs.

— Federal Reserve set to loosen bank rules to spur mortgage lending

Central bank to ease capital requirements in bid to draw home loans back to banks

The Federal Reserve is planning to relax U.S. bank capital rules to encourage more mortgage lending and reverse the trend of home finance shifting away from traditional banks to specialist non-bank lenders, according to the Financial Times. The move reflects growing concern among policymakers that regulatory burdens are discouraging banks from participating in the mortgage market.

Top Fed officials, including Vice-Chair for Supervision Michelle Bowman, have signaled that the central bank will propose reforms to lower the cost of originating and servicing mortgages for banks. A key part of the changes would be to scrap the requirement that banks deduct mortgage servicing rights from their regulatory capital and to consider lowering associated risk weights from around 250%. Other proposals could allow capital requirements that vary with a loan’s risk characteristics, aligning U.S. practice with international standards.

The initiative aims to make bank balance sheets more attractive for home loans, countering a 15-year shift toward non-bank originators such as Rocket Mortgage and CrossCountry Mortgage. By reducing the regulatory cost of mortgage operations, the Fed hopes to boost competition and direct more lending through traditional lenders without compromising overall financial stability.

Critics argue that easing capital requirements could weaken the banking system’s resilience, a theme explored in Financial Times coverage of broader U.S. banking deregulation debates. Supporters counter that current rules, largely designed after the global financial crisis, have skewed credit away from banks and contributed to tighter lending standards.

ECONOMIC, ENERGY AND USDA REPORTS FOR WEEK OF FEB. 16

Monday, Feb. 16

U.S. holiday. Markets, government closed.

Energy reports. Angola preliminary loading program (April) | Holidays: China, U.S., Brazil, Argentina, Canada, Indonesia, S. Korea.

Tuesday, Feb. 17

Economic reports/events. Empire State Manufacturing | Housing Market Index | EARNINGS: Devon Energy; EQT; Expand Energy; Energy Transfer; FirstEnergy

Energy reports. WTI March options expire | Holidays: China, Brazil, Argentina, Malaysia, Hong Kong, Indonesia, S. Korea, Singapore.

USDA reports. AMS. Export Inspections ERS: Sugar and Sweeteners Outlook | Livestock, Dairy, and Poultry Outlook NASS: Chickens and Eggs – Annual

Wednesday, Feb. 18

Energy reports. API U.S. inventory report | IEA Ministerial Meeting; runs through Thursday | Genscape ARA inventories | Holidays: China; South Korea; Malaysia; Taiwan; China; Taiwan; Vietnam.

USDA reports. ERS: Vegetables and Pulses Data | Fruit & Tree Nut Data NASS: Broiler Hatchery

Thursday, Feb. 19

USDA reports. USDA Outlook Forum | USDA Outlook Forum Commodity Outlooks ERS: Food Expenditure Series NASS: Slaughter Weekly | Livestock Slaughter

Friday, Feb. 20

Energy reports. ICE weekly Commitments of Traders report for Brent, gasoil | CFTC Commitments of Traders | Baker-Hughes Rig Count | WTI March futures expire | Holiday: China; Taiwan; Vietnam.

USDA reports. USDA Outlook Forum FAS: Export Sales NASS: Poultry Slaughter | Cattle on Feed | Milk Production | Peanut Prices

AG MARKETS

— Chicago wheat’s front-month shock

Record March/May volume, sudden inversion, and delivery ahead

Chicago wheat saw extraordinary action over three days as the March/May spread flipped from an 8-cent carry to an inverse, with more than 250,000 contracts traded — roughly eight times estimated March stocks. Meanwhile, March open interest fell to about 83,000 contracts.

Notably, May/July was unchanged, back months were quiet, and European wheat was lower on light volume — signaling this is not a broad global tightening story.

With first delivery day approaching, analysts say the move appears tied to front-end positioning — likely short covering or spread mechanics — rather than fundamentals. Global wheat stocks remain large, cheaper supplies are available elsewhere, and U.S. producers have little incentive to store as the curve flattens.

Bottom Line: This looks like a near-term positioning squeeze, not a structural wheat shortage.

— China overtakes Russia as Brazil’s top fertilizer supplier

Record shipments boost supply — but port bottlenecks and poor crop-to-fertilizer exchange ratios pressure farmers

China has become Brazil’s largest fertilizer supplier for the first time, reshaping the country’s agricultural import landscape and signaling a broader shift in global nutrient trade flows.

Between January and October 2025, China shipped 9.76 million tonnes of fertilizers to Brazil, narrowly surpassing Russia’s 9.72 million tonnes, according to a report. The milestone reflects Brazil’s continued effort to diversify sourcing while balancing cost and supply security.

What China is shipping. The bulk of Chinese exports consisted of:

• Ammonium sulphate

• NP-based fertilizer formulations (nitrogen and phosphorus blends)

Both are critical nutrients for Brazil’s row crops — particularly soybeans and corn — as producers prepare for major planting cycles.

Russia remains a strategic supplier, but China’s incremental edge underscores increasing commercial ties between Brasília and Beijing across the ag-input space.

Logistics strain at Paranaguá. The surge in Chinese shipments has strained Brazil’s port infrastructure — particularly at the Port of Paranaguá, a key fertilizer entry point.

• Ships reportedly waited nearly 60 days on average before unloading.

• Vessel queues created significant backlogs.

• Importers faced rising demurrage costs (fees charged when cargo exceeds allotted port time).

The congestion created a logistical choke point. Traders warn that extended delays and higher shipping costs could filter down to farm-level input expenses.

Farmers facing tight margins. Despite rising import volumes, market conditions remain challenging:

• The crop-to-phosphate exchange ratio remains unfavorable.

• Farmers are receiving less purchasing power from crop sales when buying fertilizers.

• Higher logistics costs further compress margins.

That dynamic is especially relevant for Brazil, the world’s largest soybean exporter and a major corn and sugar producer. Input costs play an outsized role in planting decisions and acreage strategy.

Bigger trade implication. China’s ascension reflects broader realignments in global fertilizer trade:

• Brazil is reducing over-reliance on any single supplier.

• China is expanding its influence in strategic agricultural inputs.

• Russia remains deeply embedded but now faces greater competition.

For global ag markets — especially soybeans and corn — fertilizer availability, pricing, and logistics in Brazil directly influence planting decisions, export volumes, and ultimately world supply balances. This shift isn’t just a trade footnote — it’s a structural change in the input pipeline for one of the world’s most important farm economies.

TRADE POLICY

— Carney taps Janice Charette as Canada’s chief trade negotiator to the U.S.

Veteran diplomat to lead Canada into pivotal USMCA review amid high-stakes cross-border trade talks

Canadian Prime Minister Mark Carney appointed the Janice Charette as Canada’s next Chief Trade Negotiator to the United States, positioning a seasoned public servant at the helm ahead of the upcoming review of the United States-Mexico-Canada Agreement (USMCA).

Charette brings four decades of experience in Canadian public policy and diplomacy. She previously served twice as Clerk of the Privy Council and Secretary to the Cabinet — the top role in Canada’s federal public service — and most recently represented Canada abroad as High Commissioner to the United Kingdom.

Focus: 2026 USMCA review. Her appointment comes at a critical moment. USMCA, which entered into force on July 1, 2020, includes a mandatory joint review beginning July 1, 2026 — its sixth anniversary under the 16-year agreement. That review could shape North American trade rules for years to come, including provisions affecting agriculture, energy, manufacturing, digital trade, and dispute settlement.

Charette will work closely with Canada’s Ambassador to the United States, Mark Wiseman, and with the Minister responsible for Canada/U.S. trade, Dominic LeBlanc. Her role includes advising the Prime Minister and helping strengthen bilateral trade and investment ties during what is expected to be a politically sensitive review process.

Massive economic stakes. The economic relationship at issue is enormous. More than $3.5 billion in goods and services crosses the Canada/U.S. border daily, and over 85% of merchandise trade between the two countries is tariff-free under USMCA.

Carney praised Charette’s “extraordinary leadership” and emphasized her mandate to advance Canadian interests while reinforcing a trade relationship that benefits workers and industries on both sides of the border.

Transition and recognition. Carney also thanked Kirsten Hillman for her service as Chief Trade Negotiator alongside her duties as Canada’s Ambassador to the United States, noting her defense of Canadian interests during a period of evolving North American trade policy.

With the 2026 review looming, Ottawa is clearly signaling it wants experienced hands guiding negotiations — and that the next phase of USMCA will be anything but routine.

FOOD POLICY & FOOD INDUSTRY

— Smithfield Foods to build $1.3B South Dakota pork plant

Major Sioux Falls investment signals long-term U.S. commitment — but Chinese ownership likely to draw scrutiny

America’s largest pork producer, Smithfield Foods, announced plans to invest $1.3 billion in a new hog slaughter and processing facility in Sioux Falls, marking its first newly built U.S. plant in decades. The three-year project will replace the company’s century-old Sioux Falls facility and, once operational, will:

• Employ roughly 3,000 workers

• Process up to 20,000 hogs per day

• Source nearly all hogs from producers in South Dakota, Iowa, and Minnesota

• Expand higher-margin packaged meats production

CEO Shane Smith framed the investment as a clear signal of long-term commitment to the U.S. pork sector, noting that much of the domestic meat industry infrastructure is aging and due for modernization.

Strategic timing and industry context. The announcement comes at a notable moment for U.S. protein markets:

• Smithfield returned to U.S. public markets last year, with shares up nearly 20% since listing.

• Several competitors have been scaling back:

Tyson Foods recently shuttered a major Nebraska beef plant and cut Texas capacity.
JBS and Cargill have closed smaller facilities.

• New greenfield meatpacking plants of this size are rare due to cost, regulatory hurdles, labor challenges, and community opposition.

If completed on schedule — groundbreaking targeted for 2027 and production by late 2028 — the plant would become Smithfield’s second-largest U.S. operation, behind its Tar Heel, North Carolina facility, widely considered the world’s largest pork processing plant by volume.

Automation and efficiency focus. The company emphasized that the new facility will incorporate advanced automation and streamlined design — part of a broader multibillion-dollar push across the industry to:

• Improve worker safety

• Address chronic labor shortages

• Lower per-unit processing costs

• Increase packaged-meat throughput

That automation component is increasingly central as protein processors navigate tight labor markets and margin pressure.

Political and national security scrutiny. Smithfield’s ownership structure ensures this project won’t escape political attention. Since 2013, the company has been owned by WH Group, one of China’s largest pork companies, following a $4.7 billion acquisition — at the time one of the largest Chinese takeovers of a U.S. firm.

Ownership of U.S. agricultural assets by Chinese-linked companies has drawn bipartisan scrutiny in Washington, particularly under the Trump administration. The new investment may reignite debate over:

• Foreign control of U.S. meat processing

• Agricultural land ownership

• Supply-chain security

Smithfield maintains its headquarters in Virginia and says operational decisions are made in the United States, denying influence from the Chinese government. CEO Shane Smith acknowledged potential political “noise” but downplayed the likelihood of regulatory roadblocks.

Bigger picture for pork. For hog producers in the Upper Midwest, this is a material development.

A 20,000-head-per-day plant increases regional slaughter capacity, potentially tightening basis levels and improving marketing leverage for producers in South Dakota, Iowa, and Minnesota — assuming hog supply growth keeps pace.

It also underscores something important: despite consolidation, plant closures elsewhere, and geopolitical scrutiny, large-scale capital is still flowing into U.S. pork infrastructure. For an industry navigating volatile feed costs, trade uncertainty, and protein demand shifts, that’s a strong long-term signal.

WEATHER

— NWS outlook: There is a Slight Risk of excessive rainfall over parts of the Central and Southern California Coast… …Snow and rain/freezing rain across the Upper Midwest… …Heavy snow for the Sierra Nevada Mountains.

Ag Intel

Smithfield Foods to Build $1.3B South Dakota Pork Plant

Related Posts

Tommy Grisafi & Joe Grisafi Talk China & Crop Insurance

AgBull Morning Summary 02/17/2026

Smithfield Foods to Build $1.3B South Dakota Pork Plant