Minnesota Led U.S. in 2026 Q1 Farm Bankruptcies

Minnesota led the nation in farm bankruptcies during the first quarter of 2026, highlighting growing financial pressure across the agricultural economy. According to reporting from the Minnesota Reformer, eight Minnesota farmers filed for bankruptcy during the first three months of the year — already double the total number recorded in all of 2024. Agricultural economists say falling commodity prices, rising input costs, and shrinking profit margins continue to strain farm finances. “It’s really this margin squeeze on an industry that already operates on extremely thin margins,” said agricultural economist Samantha Ayoub of the International Fresh Produce Association. Additional signs of stress are appearing across the Midwest. A new Federal Reserve Bank of Chicago survey found weaker farmland demand, lower cash rents, and tightening credit conditions throughout the region. Southwestern Minnesota farmer Bob Worth said many producers are considering leaving agriculture altogether. “They just don’t want to lose any more money,” Worth said.

Soybean Growers Support Final 45Z Guidance

American Soybean Association Secretary Jordan Scott urged federal officials to quickly finalize guidance for the Section 45Z Clean Fuel Production Credit during testimony before the U.S. Treasury Department and the Internal Revenue Service. Scott, a fifth-generation soybean farmer from South Dakota, said certainty surrounding the biofuel tax credit is critical for strengthening demand for U.S.-grown soybeans and supporting farm income during a difficult economic period. “Federal tax credit certainty for the biofuel industry supports U.S. agriculture by bolstering market access and creating value-added opportunities for farmers,” Scott said. “Conversely, the lack of tax credit certainty affects the markets that U.S. soybean farmers depend on.” Scott highlighted recent changes to the 45Z program that improve competitiveness for soy-based biofuels by removing indirect land use change penalties on agricultural feedstocks. He also encouraged Treasury and IRS officials to finalize guidance before the 2026 harvest season and continue developing policies that reward climate-smart farming practices.

USDA Opens Research Facility to Combat Livestock Pests

USDA opened a new research laboratory aimed at helping cattle producers better protect their herds from costly insect and tick threats that can impact animal health and ranch profitability. The new U.S. Livestock Insects Research Laboratory, operated by USDA’s Agricultural Research Service, will focus on developing tools to combat invasive pests such as the New World Screwworm, ticks, and disease-carrying flies. Agriculture Secretary Brooke Rollins said the facility will strengthen efforts to keep dangerous livestock pests like the New World Screwworm out of the United States and support long-term herd protection for producers. “This lab will help us accelerate our offensive efforts to drive this pest further away from our borders,” Rollins said. The 52,000-square-foot facility includes advanced research labs, cattle handling facilities, and a genomics center designed to identify pest weaknesses and improve control methods. Researchers will study trapping systems, pesticide resistance, new treatment technologies, and improved delivery methods to reduce losses and protect herd health.

Farmers for Soil Health Reopens Program Enrollment

Farmers for Soil Health has reopened enrollment for 2026, offering farmers higher payments and a simplified contract aimed at encouraging more cover crop adoption across U.S. farmland. The farmer-led initiative, launched in 2022 by the Soy Checkoff, Pork Checkoff, and the National Corn Growers Association, is increasing payments to $35 per acre on up to 2,000 acres. The program has also reduced contracts to a one-year commitment, giving growers more flexibility. Enrollment runs through Aug. 31. “Cover crops aren’t just good for the soil — they’re good for the bottom line,” said Indiana farmer Jim Douglas, a farmer advisor for Farmers for Soil Health. “The $35-per-acre payment on a simplified one-year contract removes a lot of the risk that keeps people on the fence.” The initiative aims to double U.S. cover crop acres by 2030 and is supported by a $95 million USDA grant. Technical advisors remain available to help farmers enroll and implement practices successfully.

Responsible Weight Limit Adjustments in Transportation Bill

Farmers could see lower grain hauling costs and fewer transportation bottlenecks under a proposal advancing through Congress that would allow heavier six-axle semis on interstate highways. An amendment introduced by South Dakota Congressman Dusty Johnson was added to the BUILD America 250 Act, creating a voluntary pilot program allowing states to permit six-axle trucks weighing up to 91,000 pounds on federal interstates. Agricultural groups, including the Soy Transportation Coalition, say the change would help farmers move grain more efficiently at a time of tight margins and high diesel prices. “Enhancing trucking efficiency could not be timelier,” the coalition said, citing rising fuel costs and continued pressure on farm profitability. Supporters estimate that a grain elevator using the heavier trucks could eliminate more than 800 trips per year while reducing fuel use by about 8,000 gallons annually. The coalition said farmers in states with higher weight allowances could save an average of $756 each year in fuel costs.

Farmers’ Union Wants a Stronger Safety Net

The National Farmers Union is calling on Senate leaders to strengthen the farm safety net this year as farmers face mounting financial pressure from rising costs, falling margins, and growing debt levels. NFU said farm bankruptcies have increased 46 percent while many producers continue struggling with tighter operating margins and volatile markets. The organization argues that current farm policy relies too heavily on emergency disaster aid instead of dependable long-term risk management tools farmers can count on. “Farmers need certainty and not short-term fixes,” NFU said in its call to Congress. The group is urging lawmakers to create a stronger safety net that better reflects current production costs and market conditions while reducing reliance on after-the-fact disaster assistance. The organization is also promoting a new risk management proposal called IMSET, which would allow farmers to place up to 20 percent of cropland into conservation use in exchange for enhanced reference prices on remaining acres.

Friday Watch List

Markets

On Friday, USDA will release their weekly Export Sales report at 7:30 a.m. CDT, delayed by one day due to Monday's holiday. In the afternoon, CFTC will release the weekly Commitments of Traders report, updating trader positions as of May 26.

Weather

A zone of showers continues to be quite active across the South and Southeast on Friday due to a lingering old front and upper-level system in the area, which continues through the weekend. A wave of scattered showers continues from southern South Dakota into the Delta, which could produce some heavy rain. And a system in the West is finally starting to make a move northeast toward the Northern Plains. Doing so will bring scattered showers to the Pacific Northwest, Canadian Prairies, and the rest of the Plains throughout Friday.