Food Prices Climb Slightly Higher in August

Beef prices continued to climb in August, as higher fuel costs added pressure to the broader food-price picture. The Consumer Price Index shows overall prices increased 0.4 percent in August, with gasoline prices jumping 3.9 percent and accounting for more than one-third of the monthly increase. Food-at-home prices were unchanged during the month but increased 2.2 percent from a year earlier. Within that category, beef and veal prices rose 5.9 percent over the past year, while fish and seafood increased 6.5 percent. Egg prices, meanwhile, fell 23 percent. Food purchased away from home increased 3.4 percent over the past year, compared with 2.2 percent for groceries. For beef, tight cattle supplies remain the primary driver. Beef cow inventories are historically low, the 2026 calf crop is smaller, and rebuilding the herd will take time. Strong consumer demand has also helped keep beef prices elevated, while higher energy costs add pressure throughout the food supply chain.

ARC/PLC Safety Net Payments Expand for Farmers

Farmers are beginning to see the impact of expanded Agriculture Risk Coverage and Price Loss Coverage programs, with congressional agriculture leaders highlighting $13.8 billion in ARC and PLC support. Senate Agriculture Committee Chairman John Boozman of Arkansas and House Agriculture Committee Chairman Glenn “GT” Thompson of Pennsylvania say the improvements include higher reference prices, updated payment limits, and more than 30 million new base acres. USDA confirms the base-acre expansion is being implemented for the 2026 crop year, with producers currently making ARC or PLC elections and enrolling through December 11. Boozman and Thompson say the changes are designed to provide producers with greater protection against market volatility and production losses. USDA says ARC provides payments when actual farm revenue falls below a guarantee, while PLC payments are triggered when market prices fall below established reference prices. The Working Families Tax Cuts also expanded access to disaster assistance programs and made crop insurance more affordable.

U.S. Ethanol and DDGS Exports Continue to Climb

U.S. ethanol exports climbed six percent in August to 211.8 million gallons, reaching their highest level in five months as shipments increased across most major markets. Canada remained the top destination, taking 84.8 million gallons, up 14 percent from July. That accounted for 40 percent of total U.S. ethanol exports. Shipments to the European Union rose two percent, while exports to the United Kingdom jumped 52 percent. Colombia posted an even larger gain, with shipments surging 163 percent. Through August, U.S. ethanol exports totaled 1.62 billion gallons, 12 percent ahead of the same period last year. No U.S. ethanol imports were recorded in August. Exports of dried distiller’s grains, or DDGS, also posted a strong month. August shipments increased 18 percent to 1.30 million metric tons, the highest monthly total since August 2015. Through August, DDGS exports totaled 8.57 million metric tons, up 13 percent year over year.

Red-Dyed Diesel Tax Relief is a Deferral, Not a Waiver

Farmers using red-dyed diesel on the road should understand that the recently announced tax relief is a deferral, not necessarily a permanent tax break. Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition, says President Trump’s executive order directs Treasury to defer certain federal diesel tax obligations for qualifying fuel used between October 5 and December 31, without penalties or interest. The order also directs officials to explore ways to eliminate the deferred tax obligation. For farmers, the savings depend on purchasing additional dyed diesel during the relief period. Previous purchases of taxed diesel would not qualify. Consider a farmer who purchases 2,000 gallons of red-dyed diesel for both on-road and off-road needs. Using the federal diesel tax rate of 24.4 cents per gallon, that would defer about $488 in federal taxes. State taxes vary, and farmers would need to follow their state’s rules. The American Soybean Association and state soybean groups are urging federal and state officials to ultimately waive the deferred taxes, rather than require farmers to pay them later.

Canadian Farmers Remain Most Trusted Part of Food System

Canadian farmers remain the most trusted stakeholders in the country’s food system, even as new research shows Canadians are becoming less certain about where that system is headed. The Canadian Center for Food Integrity says 57 percent of Canadians have a positive impression of the food system, unchanged from last year. However, just 40 percent believe it is moving in the right direction, down five percentage points from 2025. Affordability remains the biggest concern, with 49 percent calling food costs a major issue. Concern about food misinformation also increased, rising from 40 to 43 percent. Against that backdrop, trust in farmers increased five percentage points, giving them the highest trust level among Canadian food-system stakeholders. CCFI says the findings highlight the importance of credible, trusted voices as Canadians navigate rising costs and an increasingly complex information environment.

AFT Calls for Stronger PFAS Guidance for Farmers

American Farmland Trust is urging the Environmental Protection Agency to strengthen proposed guidance addressing PFAS (PEE-fahs) in biosolids, with a greater focus on farmers and farmland. EPA released draft guidance in July outlining voluntary recommendations for wastewater facilities, landowners, and farmers, to reduce potential risks from two types of “forever chemicals” in biosolids. The agency says the guidance is intended to help reduce risks while maintaining appropriate beneficial uses of biosolids. AFT says farmers face unique health and economic concerns from potential PFAS contamination and wants EPA to provide more farmer-specific information, including guidance on crops with lower PFAS uptake. The organization also wants EPA to prioritize preventing additional contamination of agricultural land and address potential effects on farmland value and future production options. AFT is calling for EPA to finalize its 2025 draft biosolids risk assessment and conduct a national survey of PFAS in biosolids. EPA says its draft guidance is voluntary and does not establish regulatory thresholds.

Thursday Watch List

Markets

On Thursday, USDA will be out at 7:30 a.m. CDT with the weekly Export Sales report. Otherwise, there are no major reports scheduled for what should be a quiet day ahead of the USDA WASDE and Crop Production reports on Friday.

Weather

The weather pattern across the U.S. continues to be quite warm and dry on Thursday, though a pocket of showers and thunderstorms could form over Iowa Thursday night. A system will work its way into the Canadian Prairies into Friday as well. Eyes are focused on the Gulf as Isaias strengthened into a hurricane Thursday morning and will continue to build strength throughout the day and Friday. The current forecast has Isaias becoming a borderline Category 3 storm before landfall near Mobile, AL, on Friday night.