Ag Chair says Senate to Start Farm Bill Work in Weeks

Senate Ag Chair John Boozman (BOZE-man) said he plans to take up a five-year farm bill within weeks, regardless of any possible delays a similar bill may face in the House. E & E News quoted the Chair as saying “weeks, not months,” although he didn’t offer any specifics. Bozeman did tell U.S. agriculture groups not to think delays were inaction, as he noted lawmakers and congressional leadership are discussing how to advance the bill. The most recent action on the farm bill came in the House, when Ag Committee members voted 34-17 to advance a new farm bill. However, Farm Aid reported that the bill itself remains controversial, and several sticking points may make it difficult to advance out of the full House. One particularly contentious part of the bill is protection for pesticide companies from legal claims about the product’s health impacts. The inclusion threatens Republican support from the Make America Healthy Again movement.

USDA Promotes New Voluntary “Product of the USA” Label

On National Agriculture Day, Ag Secretary Brooke Rollins announced the launch of a national public awareness campaign to inform meat, poultry, and egg producers about the “Product of the USA” voluntary labeling standard that went into effect on January 1, 2026. The campaign is also designed to increase consumer understanding of what the label means. “American consumers want to support America by buying American, and this label will strengthen our food supply chain through transparency, fairness, and trust,” said Rollins. “This new standard policy ensures producers who invest in a fully American supply chain can compete fairly, and it gives consumers the confidence they deserve about the food they bring home.” Health and Human Services Secretary Robert Kennedy, Jr., said the new label puts America’s producers first, gives families clear, honest information, and empowers them to choose food raised right here at home. 

Farmers Share Big Concerns About Greenhouse Gas Data Collection

U.S. dairy farmers across the country are increasingly being asked to provide detailed operational data to cooperatives, proprietary processors, and supply-chain partners for sustainability and Scope 3 GHG reporting. These requests can include sensitive data like herd records, feed and manure data, cropping practices, energy use, fuel consumption, and other aspects of farm business management. The requests are occurring even though federal agencies like the U.S. Securities and Exchange Commission and the EPA under the Biden and Trump administrations stepped back from Scope 3 requirements, citing concerns that they are outside a company’s direct control, controversial, and difficult to regulate and verify. Farmers contacting the American Dairy Coalition say programs tied to the dairy checkoff program’s Innovation Center of U.S. Dairy and Net Zero Initiative through the FARM ES Program appear to be expanding beyond their original voluntary intent. 

Lawmakers Seek Fertilizer Cost Transparency

A bipartisan group of Senators introduced a bill that would require mandatory price reporting of fertilizer. Bloomberg said the move is a bid for more market information after the war in Iran prompted the biggest rise in crop nutrient costs in years. The bill, called the Fertilizer Transparency Act,” would offer market participants of all sizes with comparable levels of market information on fertilizer components. “At a time when rising fertilizer costs and low commodity prices are continuing to erode farmers’ profitability, we should be increasing price transparency for farmers in the current market and increasing domestic fertilizer production and storage here at home,” said Senator Amy Klobuchar, the Ranking Member of the Senate Ag Committee. Josh Linville of StoneX said Middle East Urea has jumped by the highest amount since the Strait of Hormuz closed three weeks ago, climbing $285, a 60 percent hike compared to the pre-war prices. 

Farmers Get Less Than Six Cents of Every Dollar Spent on Food

Data from the U.S. Economic Research Service’s Food Dollar Series provides a clear picture of how consumer food spending is distributed across the U.S. food supply chain. The latest estimates show that crop producers capture about 2.5 cents of every food dollar, down from 2.9 cents in 2023. Livestock producers receive about 3.3 cents, up from three cents a year earlier. Combined, U.S. farmers and ranchers account for about 5.8 cents of the total value added in the food system, down from 5.9 cents in 2023. In 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, down from 12.1 cents in 2023, a 2.5 percent decrease year over year. The remaining 88.2 cents of the food dollar went toward the marketing bill, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing, and food service. This shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farming.

USDA Releases Livestock, Dairy, and Poultry Reports

USDA’s 2026 projection for beef production was lowered by 110 million pounds from last month to 25.81 billion pounds. A sharp decline in fed cattle slaughter expected in the first quarter was partially offset by a slight increase in second quarter slaughter and heavier carcass weights. In 2026, the dairy cow herd is projected to average 9.57 million head, an increase of 30,000 head, and milk production is forecast to be higher at 234.7 billion pounds, 0.2 billion pounds higher than last month’s forecast. Quarterly commercial pork production forecasts for 2026 are unchanged, leaving the annual production forecast unchanged at 28.3 billion pounds, 2.5 percent higher than last year. In poultry, projected broiler production was adjusted higher in the first half of 2026, reflecting recent hatchery data, while 2026 broiler export projections were unchanged. Projected broiler prices were adjusted lower in the second quarter on recent price trends.

Wednesday Watch List

Markets

On Wednesday, the EIA will release the weekly Petroleum Status report at 9:30 a.m. CDT, which will include last week's ethanol production. Otherwise, it looks to be another quiet day for reports, but markets will remain sensitive to war-related headlines as has been the case for the past month.

Weather

A system is moving along the Canadian border on Wednesday, producing some areas of showers across the far north. Warmer air continues to spread eastward south of the system with some extremely warm temperatures again in the Southern Plains.