Beyond the Courtroom: How Recent Legal Battles and Policy Shifts Are Reshaping Agribusiness

For anyone involved in American agriculture, navigating market volatility and rising input costs is part of the job. But beyond the daily challenges of weather and commodity prices, a series of significant legal and regulatory shifts are quietly reshaping the industry's future. From landmark antitrust lawsuits to a renewed federal focus on competition, the ground is moving beneath the feet of producers and stakeholders alike.

This post provides a clear, objective overview of the key legal developments of 2025, offering the essential information farmers, ranchers, and industry leaders need to understand this changing landscape.

The Cattle Antitrust Litigation: A Major Domino Falls

For years, the industry has closely watched the "In re Cattle Antitrust Litigation," a massive class-action lawsuit alleging that the nation's largest meatpackers conspired to fix the price of beef. This year, the case saw one of its most significant developments yet.

On August 15, 2025, the court granted final approval to an $83.5 million settlement between the plaintiffs and JBS USA. While this provides a resolution for class members in their claim against one of the key defendants, the case is far from over. Litigation continues against the other non-settling firms. Critically, the JBS settlement includes cooperation clauses that plaintiffs believe will strengthen their case moving forward. The outcome of this ongoing lawsuit could set a powerful precedent for how market concentration is handled in other agricultural sectors.

Washington's Renewed Focus on Competition

The scrutiny isn't just coming from the courts. In Washington, D.C., federal agencies are signaling a new era of oversight.

In late September 2025, the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) announced a formal partnership through a Memorandum of Understanding. Their stated mission is to foster fair competition and protect producers from anticompetitive practices. The agencies have been clear about their initial areas of focus: the markets for critical farm inputs like seeds, fertilizer, feed, and equipment. This collaboration represents an unprecedented level of federal coordination aimed at investigating consolidation and pricing in the agricultural supply chain, and it indicates that business as usual may face new challenges.

Keeping an Eye on Crop Insurance

Federal risk management tools also continue to evolve. For the 2025 crop year, the USDA's Risk Management Agency (RMA) has announced several key updates that producers should be aware of:

• For Ranchers: The RMA has released updated final grid indices for the Rainfall Index insurance program, which is critical for those who insure pasture, rangeland, and forage (PRF) against lack of precipitation.

• For Commodity Crop Producers: The agency has clarified reporting requirements for the Stacked Income Protection Plan (STAX) for upland cotton and the Supplemental Coverage Option (SCO), both of which are crucial area-based insurance products that cover a portion of a farmer's deductible.

• For Diversified Farms: A new pilot handbook has been issued for the Whole-Farm Revenue Protection (WFRP) program, which provides a risk management safety net for all commodities on a farm under one policy, making it a key tool for highly diversified operations.

These updates reflect the RMA's ongoing efforts to refine its programs to better meet the needs of a modern and diverse agricultural sector.

More Than Just Antitrust: Other Headwinds to Watch

While antitrust action has captured the headlines, other legal and economic pressures are also shaping the industry:

• Economic Pressures: Data shows a concerning rise in farm bankruptcies, driven by the persistent squeeze between high input costs and lower commodity prices.

• Regulatory Uncertainty: With a new farm bill on the horizon, discussions around potential changes to tax laws, such as IRS Section 180, are gaining traction. Simultaneously, recent Supreme Court rulings impacting the authority of federal agencies have created uncertainty around the future of key environmental regulations like the "Waters of the U.S." (WOTUS) rule.

• Foreign Investment: The USDA has launched a new online portal for reporting potential violations of the Agricultural Foreign Investment Disclosure Act (AFIDA), signaling a closer watch on foreign ownership of U.S. agricultural assets.

  
  

A Landscape in Transition

The agricultural sector is at a critical juncture. The resolution of major lawsuits, combined with a sharp increase in federal enforcement and ongoing economic pressures, creates a complex and evolving business environment. While the final outcomes of these developments remain to be seen, the direction of travel is clear: toward greater scrutiny of market concentration and industry practices. For producers and stakeholders, staying informed is no longer just good practice—it's essential for strategic planning and navigating the road ahead.

Charles D. (“Chuck”) Lee is a founding and senior partner at Lee Schwalb LLC, where he advises businesses and agricultural producers on complex litigation, corporate governance, and regulatory compliance. A Fellow of the Litigation Counsel of America and former General Counsel at National Crop Insurance Services, Chuck brings more than 30 years of experience in business and agricultural law.