NASHVILLE, TENN. (RFD NEWS) — U.S. agriculture still faces uncertainty from the European Union’s (EU) deforestation regulation, even after the European Commission released a simplification package. USDA’s Foreign Agricultural Service says the package does not resolve key U.S. concerns over due diligence statements and geolocation data.
The EU says its changes could reduce annual company compliance costs by about 75 percent compared with the original rule. The package includes updated guidance, revised questions and answers, product-scope changes, and information system updates.
The concern for U.S. agriculture is that low-risk suppliers may still face paperwork and traceability burdens. USDA says operators sourcing from low-risk countries must still collect the required information and provide geolocation coordinates for production plots.
USDA says U.S. agricultural and timber production is not driving deforestation, with forest cover remaining stable and extensive across the country. The rule could affect $9 billion in U.S. agricultural exports, including beef, soy, wood, rubber, and derived products.
The regulation is scheduled to take effect on December 30, 2026, leaving U.S. exporters and farm groups watching whether the EU makes further changes.
Farm-Level Takeaway: EU simplification may reduce some paperwork, but U.S. exporters still face costly traceability requirements.
Tony St. James, RFD News Markets Specialist
November 17, 2023 11:15 AM
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