A new surge in oil prices will hit farmers right in the bottom line. New estimates suggest a $90-per-barrel market, which could significantly raise production costs across the board. Kansas State University economist Gregg Ibendahl said higher oil prices are already creating a ripple effect through key farm inputs like diesel fuel and fertilizer. “$90 oil would add more than a dollar per gallon to the fuel costs, and that could easily mean another $10,000 per year in total fuel expenses,” he said. “The average Kansas grain farm spent about $20,000 on fuel last year, and that means even a moderate increase can hit budgets hard.” Fertilizer prices are just as big a concern because they’re closely tied to the energy markets. The study showed rising oil prices could push fertilizer expenses up by ten percent. For the average grain farm, that translates into roughly $12,000 in additional costs.
Welcome
Thursday, April 2, 2026
U.S. Farmers Planting Less Corn and More Soybeans
The latest USDA Prospective Plantings Report shows farmers are planting three percent less corn compared to last year. Producers in South Dakota, Nebraska, Iowa, and Minnesota will lead the rest of the country in fewer corn acres. South Dakota’s area will fall by 550,000 acres to 6.3 million, the biggest decline in any of the top corn-producing states. The Ag Department said corn acres in Nebraska, Iowa, and Wisconsin will each fall by about 450,000 acres. Soybeans in the U.S. will replace at least some of the corn acres, increasing by four percent compared to 2025. Iowa will see the biggest rise in soybean acres, up by 450,000 over last year. Wisconsin will jump by 370,000 acres, and Nebraska will plant an additional 350,000. Wheat area is likely to shrink by three percent compared to 2025. If accurate, that would be the smallest planted area since recordkeeping began in 1919.
Illinois Reaches Important B20 Milestone
Clean Fuels Alliance America applauded Illinois for moving to a B20 biodiesel blend requirement, a major milestone that strengthens the state’s leadership in expanding the use of cleaner, domestically-produced biofuels. Effective April 1, the minimum biodiesel blend required to qualify for Illinois’ state sales tax exemption increases from B17 to B20. That represents the final phase of landmark bipartisan legislation passed in 2022. The policy exempts qualifying biodiesel blends from the state’s 6.25 percent sales tax, creating a powerful market incentive to drive adoption. “Illinois has created a model that supports farmers, strengthens fuel markets, and improves air quality all at the same time,” said Jeff Earl, the director of state governmental affairs for Clean Fuels. The biodiesel industry generates $3.2 billion in annual economic activity in Illinois and supports 8,100 jobs across the state. “This is a win for rural communities, the environment, and energy security too,” Earl added.
MOU Launches Grazing Action Plan
Public lands ranchers joined Ag Secretary Brooke Rollins and Interior Secretary Doug Burgum as the secretaries signed a memorandum of understanding launching their Grazing Action Plan. Leaders and members of the National Cattlemen’s Beef Association and the Public Lands Council participated in a roundtable discussing cooperative work to address longstanding challenges for federal lands grazing permittees. “By speeding up the permitting process and expanding the use of targeted grazing, the federal government is ensuring that more ranchers will keep ranching and that rangelands will face less depredation and destruction from wildfires and mismanagement,” said Tim Canterbury, President of the Public Lands Council. The Grazing Action Plan focuses on boosting rancher resiliency by assessing vacant allotments, unifying permitting frameworks between agencies, expanding the use of targeted grazing to prevent wildfires, and establishing a rancher liaison program for wildfire incident command centers.
Applications are Open for the Ag Innovation Challenge
The American Farm Bureau, in partnership with Farm Credit, is accepting applications for the 2027 Farm Bureau Ag Innovation Challenge through June 5. Now in its 13th year, this national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by American farmers, ranchers, and rural communities. The overall winner of the competition will get $100,000 in startup funds, the runner-up will receive $25,000, and two additional business owners who advance to the final four round will each get $10,000. “Encouraging innovation is essential to keeping American agriculture strong,” said AFBF President Zippy Duvall. “If you’re building a business that can help farmers and rural communities thrive, don’t wait. Apply today.” After the application period closes on June 5, ten semifinalist teams will be selected and announced on September 2. Next, the ten teams will pitch virtually to compete for a spot in the final four round of the contest.
Bill Would Expand Access to Mental Healthcare for Farmers
In honor of National Ag Day, legislators introduced the bipartisan Agriculture Access to Addiction and Mental Healthcare Act. The bill aims to improve access to mental health and addiction services for farmers and ranchers in rural communities. Wisconsin Congressman Derrick Van Orden, one of the cosponsors, says farmers and ranchers are the nation’s backbone, working tirelessly to feed and fuel America. “This legislation takes an important step toward understanding the gaps in access to mental health and addiction care for our agricultural communities,” Van Orden said. Congressman Joe Neguse (neh-GOOSE) of Colorado said this legislation takes an important first step towards bridging access and care gaps and ensuring that rural America has access to essential healthcare services. “Our farmers, ranchers, and producers are essential to the nation’s food security,” Neguse said, “and we must make sure we’re supporting them with access to healthcare for them and their families.”
Thursday Watch List
Markets
USDA will release their Weekly Grain Export Sales report Thursday morning at 7:30 a.m. CDT. At the same time, the U.S. Census Bureau will release U.S. trade balance details for February. Of course, traders will also be following the conflict in the Middle East for new developments.
Weather
A storm system in the Plains continues to move northeast through the Midwest on Thursday. Widespread showers and thunderstorms will continue to develop with the system. Some areas of heavy rain and severe weather will be possible. Cold temperatures across the north are causing some snow and freezing rain to accumulate as well. A second storm system is moving through the Pacific Northwest and will continue to push eastward into the Canadian Prairies and Northern Plains with additional showers and some areas of heavier snow as well.
Wednesday, April 1, 2026
Ag Secretary Working with Companies to Lower Input Prices
USDA Secretary Brooke Rollins is working directly with ag input companies to address the still-rising costs of farmer inputs amid warnings of fertilizer supply shortages and ongoing disruptions. Rollins told Fox News last weekend that her agency wants significant relief for farmers. Agri-Pulse reported that the White House is wrestling with high prices for diesel and fertilizer, which have risen sharply since the Iran war began. “We’re now talking about this likely not just as a spring problem, but a problem that will likely last into the fall,” a source told Agri-Pulse. Farmdoc, from the University of Illinois, reports an especially significant spike in the on-farm diesel price. “Prices are now working toward the record-high levels seen in March 2022,” said Nick Paulson, a professor of agricultural and consumer economics at the University of Illinois. Among fertilizer prices, Paulson said urea prices have climbed by 39 percent, the highest jump so far.
U.S. Farmers Planting Less Corn and More Soybeans
Producers intend to plant 95.3 million acres of corn in 2026, down three percent from last year. That’s according to the Prospective Plantings Report released by the National Agricultural Statistics Service. Soybean growers intend to plant 84.7 million acres in 2026, up four percent from last year. The report is the first official, survey-based estimates of U.S. farmers’ planting intentions. Other key findings include all wheat planted area for 2026 will be 43.8 million acres, down three percent from 2025. Winter wheat planted area, at 32.4 million acres, is down two percent from both the previous estimate and last year. The Grain Stocks Report, also released this week, shows an 11 percent increase in U.S. corn stocks from last year, a ten percent jump in soybean stocks over 2025, and all wheat stored totaled five percent more bushels than last year.
Poll: Voters Overwhelmingly Support Year-Round E15
Amid rising prices at the pump and volatile global energy markets, an overwhelming majority of registered voters support the expansion of the lower-cost E15 fuel blend and legislation that would make it permanently available nationwide. That’s according to a new poll from Morning Consult, conducted for the Renewable Fuels Association. RFA said the polling results underscore the urgency of securing federal legislation to finally allow sales of E15 year-round. “These results send a clear and unequivocal message to policymakers: American voters want expanded access to lower-cost E15, and they want it now,” said RFA President and CEO Geoff Cooper. “By a margin of eight-to-one, voters support efforts to broaden the availability of the more-affordable, cleaner-burning fuel.” RFA also said hardworking families across the country clearly understand E15 can help them save money while improving U.S. energy security during a time of great uncertainty.
Egg Prices Ease as Poultry Producers Prepare for Spring Wildfowl Migration
A report from the American Farm Bureau has good news for egg buyers. Egg prices have dropped sharply as production recovers from volatility caused by Highly Pathogenic Avian Influenza infections. While detections in January and February rose sharply, with over 15 million birds infected, it’s still 56 percent fewer birds infected than at the same time last year. Detections slowed in March, reflecting producer progress in managing the outbreak. USDA is urging farmers to be vigilant with biosecurity as the wildfowl spring migration gets underway. The migration is typically associated with increased disease pressure from HPAI as wild birds come in contact with domestic flocks. While HPAI does continue to circulate in wild bird populations, the impacts are concentrated in poultry, and broader livestock exposure has been more limited than in recent years. Experts say the limited spillover into other livestock sectors points to a more contained and manageable phase of the outbreak.
USDA Trade Mission Participants will Head to the Philippines
The USDA will lead a trade mission to the Philippines from April 13–16, with the goal of expanding market access for America’s farmers, ranchers, and producers. The mission follows a trade agreement in July 2025, which opened new opportunities for U.S. ag exports to the Philippines. “USDA is committed to getting American farmers, ranchers, and agribusinesses better access to strong markets and fair opportunities abroad,” said Michelle Bekkering, USDA Deputy Undersecretary for Trade and Foreign Agricultural Affairs, who will lead the mission. “This mission will connect U.S. exporters to reliable buyers in one of Asia’s fastest-growing markets.” The Philippines is the tenth-largest market for U.S. agricultural and food products, averaging $3.4 billion in annual exports over the past five years. With a population of 118 million, a rapidly expanding middle class, and strong consumer preference for U.S. products, the Philippines offers enormous growth potential for American exporters.
Klobuchar: Concerns About USDA Data Quality
Senators Amy Klobuchar (D-MN) and Jeanne Shaheen (D-NH) led ten Democrats in raising concerns to USDA about the reliability of data reports from the agency. They said that a recent Farm Journal survey found 73 percent of ag producers and 78 percent of ag retailers are less confident in USDA reports than in recent years. The Senators’ letter to the agency expressed significant concerns regarding the reliability of USDA reports. “Farmers need reliable data to make critical decisions on what to plant, how to manage risks, and when to market their agricultural products,” the letter said. “Given the importance of reliable data to U.S. farmers, ranchers, and rural communities, it’s critical that USDA maintain the quality and integrity of its data.” The erosion of trust comes after a loss of over 30 percent of the employees at the National Agricultural Statistics Service and almost 25 percent of Farm Service Agency employees.
Wednesday Watch List
Markets
The EIA will kick off April with their weekly Petroleum Status report, due out Wednesday morning at 9:30 a.m. CDT. At 11 a.m. CDT, USDA will release their final monthly State Stories Conditions Report before weekly Crop Progress reports resume next Monday. Finally, after the close at 2 p.m. CDT, USDA will release their Fats and Oils: Oilseed Crushings and Grain Crushing and Co-Products Production reports, with crush data for February.
Weather
A front continues to produce scattered showers and thunderstorms in the Midwest early Wednesday, but the main story is a system moving into the Plains. Some snow has already started to develop in the Northern Plains, increasing throughout the day. Additional showers and thunderstorms will develop across the Central and Southern Plains Wednesday afternoon and evening, some of which could be severe. Precipitation will spread into the Upper Midwest Wednesday night, which will turn to freezing rain going into Thursday.