Farmers Spent $1.4B More on Diesel During Planting Season

A new study by Joint Economic Committee Democrats found that farmers of key crops in the U.S. spent $1.4 billion more on diesel fuel during the 2025–2026 planting season than they did last season, reports Successful Farming. The increase in diesel spending to plant corn, soybeans, wheat, cotton, and rice was a 63% jump year-over-year. Illinois, Iowa, and Minnesota had the highest increase overall.  According to Michigan Farm News, the cost doesn’t take into account other war-related increases such as the increased costs of running diesel generators that power some greenhouses or the increases at the pump that farmers and truckers face when they drive products to market. Farms.com says the average farmer paid roughly $1,500 more to refill a typical on-farm fuel tank compared to peak costs experienced during the 2025 planting season. AgroLatam warns elevated fuel costs could influence machinery investments, crop selection and operating strategies.

USDA Announces $25M for Arizona Sterile Fly Facility

The U.S. Department of Agriculture announced plans to invest $25 million in a new sterile fly dispersal facility in Douglas, Arizona, as part of its long-term strategy to combat New World screwworm. Agriculture Secretary Brooke Rollins says the facility will strengthen the nation's ability to push the pest back into Mexico and ultimately eradicate it from North America. The Arizona facility would complement existing sterile fly investments in Texas, Mexico and Panama. USDA is working with state leaders to determine the facility's exact location and operational plan. Depending on the selected site and available infrastructure, construction could be completed in as little as several months. The announcement comes after a year of trapping operations near Douglas by USDA's Animal and Plant Health Inspection Service and Arizona personnel. Nearly 1,000 flies were submitted for analysis, and scientific experts found none were New World screwworm. Officials have also conducted preparedness planning, response training and stakeholder outreach in the region.

Rollins Details Reopening Plan for Douglas Livestock Port

The U.S. Department of Agriculture is moving forward with plans to reopen the Douglas, Arizona, Port of Entry to livestock trade on Aug. 24, following what Agriculture Secretary Brooke Rollins described as one of the most rigorous livestock inspection systems ever implemented. Douglas was selected as the first port to reopen because Sonora maintains one of Mexico's strongest animal health systems and is considered the lowest-risk state for New World screwworm. Under USDA's phased reopening plan, every animal entering through Douglas will undergo multiple veterinary inspections before crossing the border. Animals that fail to meet Animal and Plant Health Inspection Service import requirements will be denied entry. Any detection of NWS would immediately halt imports through the facility. USDA said the reopening remains contingent on Mexico's continued adherence to the Joint Action Plan to combat NWS and ongoing risk assessments. 

U.S., Mexican Dairy Leaders Deepen Partnership as USMCA Talks Continue

Dairy leaders from the United States and Mexico concluded the 2026 U.S.-Mexico Binational Dairy Summit this week, reaffirming shared priorities on trade, innovation and the future of dairy farming against the backdrop of negotiations related to the U.S.-Mexico-Canada Agreement. Held July 29-31 in Querétaro, Mexico, the event brought together dairy leaders from the National Milk Producers Federation, the U.S. Dairy Export Council and leading Mexican dairy organizations. The organizations adopted a new shared principle recognizing the importance of supporting the next generation of dairy farmers in both countries through the exchange of information and experience while creating new opportunities to collaborate on issues critical to the future of the dairy sector. "The dairy trade relationship between the United States and Mexico is a true success story as our industries have grown in parallel for over three decades," said NMPF President and CEO Gregg Doud. “Central to that success is an open dialogue. We look forward to continuing work together to address shared challenges and develop our markets together.” The organizations agreed to expand collaboration in the months ahead. The summit followed the third round of U.S.-Mexico negotiations related to the USMCA.

Corn Condition Drops Amid Heatwaves

The damage from triple-digit heat across the Midwest and Plains is showing up in the numbers, reports AgWeb. USDA’s weekly crop progress report shows the steepest week-over-week decline in corn good to excellent condition ratings for this point in the growing season in nearly 20 years, catching analysts off guard. USDA now rates the corn crop at 63% good to excellent, 25% fair, and 12% very poor to poor. Last year at this time, 73% of the corn crop was in good to excellent condition, according to Successful Farming. Some of the sharpest pain is showing up in the western Corn Belt and Plains. USDA is predicting more favorable temperatures ahead. Bloomberg reports that for the remainder of the week, any heat that has crept into the western Corn Belt will be pushed out, leaving Midwestern temperatures favorable. Extended weather models continue to trend better for Midwest crops.

New Initiative Seeks to Recruit Veterans

In addition to veterans, the U.S. Department of Agriculture will recruit transitioning service members and military spouses into mission-critical careers that protect America’s food supply, strengthen rural communities, and defend the nation’s agricultural security. The initiative combines two major efforts to expand opportunities for military-affiliated talent at USDA: an expanded partnership with the U.S. Department of War’s SkillBridge Program and the launch of USDA’s 100 Hires in 100 Days initiative, a department-wide effort to accelerate the hiring of veterans, transitioning service members, and military spouses across the Department. “America’s service members have spent their careers protecting our nation, and USDA is proud to offer them a new mission after they leave the military: protecting American agriculture,” says Agriculture Secretary Brooke Rollins. Every year, roughly 200,000 members of the U.S. Armed Forces transition from active-duty service into civilian careers. USDA notes their leadership, operational experience, and commitment to mission make them uniquely qualified to help the department address evolving threats, strengthen agricultural resilience, and serve farmers and rural communities.

Friday Watch List

Markets

As July comes to a close, Friday looks to be a slow session for reports. CFTC is set to release their weekly Commitments of Traders report at 2:30 p.m. CDT. Otherwise, markets will maintain a focus on weather and the ongoing wars in the Middle East and Black Sea.

Weather

A small storm system is producing widespread showers and thunderstorms across the western Midwest Friday morning. That system will be slow to move across the Mississippi River, leading to rounds of showers and thunderstorms for areas that have been a bit too dry. Milder air is coming in behind the system as well, giving a break to areas that might not have had much precipitation in the Plains, though the cooler temperatures will only be temporary as they increase this weekend in the Northern Plains again.