USDA is sending $280 million to help Texas producers amid severe water shortages from Mexico

USDA wants to help Texas producers who they say have been cheated out of water from Mexico.

Ag Secretary Brooke Rollins announced a $280 million grant agreement between USDA and the Texas Department of Agriculture. She said for too long farmers have suffered from Mexico’s failure to meet its water delivery obligations under a 1944 treaty.

Under the agreement, Mexico is obligated to provide the U.S. with 350,000 acre-feet of water each year, over a five-year cycle. Mexico has delayed all deliveries this cycle until the final year, and lawmakers have even considered sanctions in the past.

Rollins was in her home state this week, where she hosted a roundtable with farmers and ranchers, alongside Senator Ted Cruz. She reassured farmers of their commitment in Washington and said the Administration would do all it could to deliver for America’s farmers.

Related Stories
Cattle and hog supplies continue to tighten while dairy output expands, creating a split outlook in which red-meat prices soften and milk values come under pressure from larger supplies.
Firm live cow prices and shifting dairy-side culling suggest cull cow values may stay stronger than usual this winter despite weaker cow beef cutout trends.
Lewis Williamson with HTS Commodities shares an update on post-WASDE grain movement, with corn leading export momentum, soybeans steady, and wheat and sorghum continuing to move selectively.
New SDRP funding and expanded loss programs give producers additional tools to rebuild cash flow and stabilize operations after two years of severe weather losses.
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.

LATEST STORIES BY THIS AUTHOR:

Wayne Cockrell with the Texas and Southwestern Cattle Raisers Association joined us to discuss preparedness, producer awareness, and the industry’s response to New World screwworm concerns.
President Donald Trump speaks at the World Economic Forum in Davos, addressing SNAP spending, tariff threats against Europe, market reactions, and the upcoming USMCA review.
From meatpacking settlements to landmark NEPA rulings, Roger McEowen outlines the top legal developments in 2025 that will shape agriculture in the years ahead.
Alan Bjerga with the National Milk Producers Federation joined us to review new policies and regulations supporting the dairy industry and what they mean for the year ahead.
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.