TAG Q2 Edition

Deciphering the Signals

2026 2nd Quarter Edition

The second quarter of 2026 has proven to be a pivotal moment for policymaking as it concerns the food and agriculture industry. At Torrey Advisory Group, we are closely monitoring these movements. In this quarter's edition, we will share three issues that are shaping near-term business risk and opportunity across the industry along with a our 90 Watch-List and a dive into the importance of the WASDE.

1. The Farm Bill is Moving Through Fits & Starts

A full, comprehensive Farm Bill remains elusive but currently has more momentum after bipartisan House floor passage of a bill. The Senate is now actively engaging on next steps to bring its version of the bill up for discussion. Key challenges in the Senate will include attracting Democratic votes and beating the clock in an election year where session days are limited, and successful advocates have already outlined clear priorities in the Senate.

2. Trade Policy Remains a Top Margin Risk

Tariffs, trade enforcement, and strategic competition continue to define the trade environment. Even without major announcements, cost exposure remains elevated and uneven across sectors. Trade policy directly impacts input costs and capital planning, export competitiveness and pricing stability. Companies that manage this well treat it as an ongoing policy function, not a one-off disruption.

3. Food Policy: A Growing Source of Fragmentation Risk

States continue to advance ingredient restrictions, labeling proposals, and consumer-facing standards, while at the federal level agencies have been less active through formal rulemaking and more influential through signaling, enforcement posture, and broader policy debate. Multi-state compliance creates cost and operational complexity, leading to fragmentation that often carriers higher risk than a single federal standard. Along with this fact, retail and reputational pressure can move faster than regulation; therefore, federal efforts have further fallen back, giving more room for state actions and continued pressure against business to act.

Feature:

What is the WASDE & Why is it Important?

The monthly World Agricultural Supply and Demand Estimates (WASDE) report is one of the most closely watched reports in agriculture. Published monthly by the U.S. Department of Agriculture (USDA) through its World Agricultural Outlook Board, the report provides forecasts for both U.S. and global supply and demand across major agricultural commodities.

At its core, the WASDE serves as a balance sheet for agriculture - tracking production estimates, acreage, exports, imports, and ending stocks to paint a picture of where markets may be headed. Markets often react quickly to new estimates, especially during periods of uncertainty or shifting global dynamics. While no forecast is guaranteed, the WASDE serves as an important tool for producers making marketing, planting, and risk management decisions throughout the year.

The May WASDE is the most critical report of the year, establishing the very first official, comprehensive projections for the upcoming marketing cycle. Read more from TAG's very own in-house economist, Eden Lambert on this year's May WASDE.

TAG's 90-Day Watchlist

Farm Bill movement in the Senate
Trade cost exposure, continued tariff shifts from Section 301 investigations and modifications to Section 232 tariffs, and product-specific pressure points
Food policy developments, including state ingredient restrictions, labeling proposals, and federal signaling
Appropriations timing, report language, and other near-term decision points with business impact
Midterm election primaries and state redistricting efforts

How TAG Helps

Farm Bill strategy: pathway mapping, coalition building, committee engagement
Trade advocacy: tariff strategy, exclusions, coordinated industry efforts
Food policy: state-federal alignment, association strategy, early-stage engagement

TAG in Action

We’re actively engaging policymakers, industry leaders, and stakeholders across the food & agriculture landscape. Stay connected with how our team is showing up and tracking key developments in real time:

On the ground: Highlights from recent TAG participation in key industry events and policy discussions shaping the near-term outlook.
- Team Torrey at the 2026 Agri-Pulse Ag & Food Policy Summit in Washington, D.C.
In the room where it happens: Strategic engagement across Capitol Hill and with federal stakeholders on priority issues impacting food & agriculture.
- Team Torrey on Capitol Hill with the Crop Insurance & Reinsurance Bureau for their Spring Fly-In ahead of the House Farm Bill passage
Insights in motion: Real-time perspectives connecting policy signals to business risk and opportunity across the industry.
- Tara Smith on the Clearing the Air Podcast

Stay Connected

To stay up-to-date on the latest in food and agriculture policy, connect with us on LinkedIn and visit our website. If you want to discuss what any of the above signals mean for your organization’s strategy, reach out and we will set up time.

We look forward to hearing from you! Feel free to contact any member of our team: Michael Torrey, Tara Smith, Cassandra Kuball, Barbara Patterson, Katie Naessens, Nona McCoy, Danielle Nelson, Julie McClure, Ashley Smith, Caroline Sowinski, Olivia Lucanie , Tracy Boyle, Eden Lambert, or Grace Walker with any questions or comments.

Food and agricultural organizations that need the right results in Washington, D.C. can trust Torrey Advisory Group to put its relationships, reputation, and expertise to work on your issue. Since 2005, the firm has successfully provided legislative and regulatory guidance, issues management, and association management services to a wide variety of clients. Learn more about us at torreydc.com.