EPA Clarification Gives Farmers New Leverage in Right-to-Repair

A new federal clarification has added momentum to the right-to-repair debate, with the Environmental Protection Agency confirming that farmers and independent mechanics can temporarily override emissions controls while repairing agricultural equipment. In guidance issued this week, the EPA said tools and software used to take equipment out of its certified configuration for diagnostics or repairs do not violate the Clean Air Act, as long as emissions systems are restored afterward. Supporters say the move removes a major legal gray area that has limited farmers’ ability to fix modern tractors and combines without manufacturer-authorized dealers. The issue has been central to years of disputes between farm groups and equipment makers over access to repair tools, software and manuals. Industry groups have warned that broader repair access could lead to emissions tampering or safety risks. The EPA action comes as Congress weighs bipartisan right-to-repair legislation and several states move to expand repair access, signaling growing federal engagement in a long-running fight over equipment ownership and control.

RFA Applauds Proposed 45Z Clean Fuel Tax Credit Rule

The Renewable Fuels Association welcomed a proposed rule implementing the 45Z Clean Fuel Production Tax Credit, calling it a key step toward providing long-awaited clarity for ethanol and other biofuel producers. In a statement, RFA President and CEO Geoff Cooper said the proposal from the U.S. Treasury Department reflects progress in aligning the credit with congressional intent by rewarding low-carbon fuel production based on lifecycle greenhouse gas emissions. He said regulatory certainty is critical for producers making long-term investment decisions. The 45Z credit, created under the Inflation Reduction Act, replaces earlier biofuel tax incentives and is designed to encourage domestic production of cleaner transportation fuels beginning in 2025. Industry groups have urged Treasury to clearly define eligibility, emissions modeling and reporting requirements. RFA said the proposed regulation would help strengthen rural economies, support U.S. energy security and accelerate innovation across the renewable fuels sector as producers work to lower carbon intensity and expand clean fuel markets.

USDA Moves to Block Screwworm Threat near Southern Border

USDA says it will release glow-in-the-dark sterile flies along the U.S.–Mexico border to prevent the New World screwworm from spreading north and threatening American livestock. The flesh-eating parasite has recently been detected in northern Mexico, prompting renewed concern among cattle producers and animal health officials. USDA officials said the sterile insect technique, which was used successfully to eradicate the pest from the U.S. decades ago, disrupts reproduction and limits population growth. Ranchers have been urged to monitor herds closely and report suspected cases immediately. Reuters reported that limited production capacity for sterile flies could complicate containment efforts if infestations expand. Livestock groups warn that an outbreak could severely impact cattle supplies and drive beef prices higher.

China’s Rural Policy Plan Emphasizes Grain Security and Technology

China released its annual rural policy blueprint, pledging to strengthen food security, support farm incomes, and accelerate agricultural technology development. The plan, known as the “No. 1 Document,” prioritizes grain and oilseed production amid ongoing trade tensions and climate challenges. According to Reuters, the document calls for stabilizing domestic soybean supplies through improved yields rather than expanded acreage. Officials also highlighted biotechnology, artificial intelligence and mechanization as key tools to boost productivity. The South China Morning Post reported that Beijing is also focused on managing pork and beef output to prevent price volatility. Analysts say the policy underscores China’s effort to reduce reliance on imports while maintaining flexibility in global agricultural trade.

Brazil Soybean Production Outlook Improves as Harvest Expands

Private analysts raised forecasts for Brazil’s soybean crop as harvesting gained momentum and weather conditions remained largely favorable across major producing regions. Brazil is already the world’s largest soybean exporter. Reuters reported that consultancy StoneX increased its production estimate, citing strong yields in central and northern growing areas. Celeres also raised its outlook, pointing to improved field results despite isolated weather issues. According to Agriculture.com, the larger crop is expected to pressure global soybean prices and intensify competition with U.S. exports later this year. Traders say Brazil’s expanding supply could reshape trade flows, particularly to China, the world’s top soybean buyer.

Trump Slashes India Tariffs

President Donald Trump said Monday the United States will cut tariffs on Indian goods to 18% after India agreed to stop purchasing Russian crude oil, marking what he described as a major new trade and energy deal between the two countries. In a social media post, Trump said India also committed to reducing its tariffs and non-tariff barriers on U.S. products to zero and to buying more than $500 billion worth of American energy, technology, agricultural goods, coal and other products over time. Indian Prime Minister Narendra Modi confirmed the agreement in his own post, saying tariffs on “Made in India” products exported to the United States would be reduced to 18%. The announcement drew an immediate reaction in commodity markets, with U.S. soybean oil futures posting solid overnight gains amid expectations of expanded agricultural trade with India, one of the world’s largest importers of vegetable oils. Neither government released additional details on timelines or enforcement of the commitments.

Wednesday Watch List

Markets

Reports for Wednesday include the weekly Petroleum Status report from the Energy Information Administration at 9:30 a.m. CST which will include last week's ethanol production. Later on at 11 a.m. CST, USDA will release the State Stories compilation which will include NASS field office reports on crop and range conditions in select states, which will be noteworthy for winter wheat given the cold snap in late January.

Weather

A system continues to bring scattered rain showers into the Southeast on Wednesday. Some spotty showers are found in the Plains as well. It's a bit cold in the Midwest Wednesday, but warmer air continues to lurk across the West and leak into the Plains.