Group Welcomes 45Z GREET Model Update

Clean fuel producers have more certainty heading into the current tax year following an updated federal model tied to the 45Z Clean Fuel Production Credit. Clean Fuels Alliance America welcomed the Department of Energy's release of the latest 45ZCF-GREET model, which reflects changes approved by Congress last July. The updates remove indirect land use change penalties and limit eligibility to fuels made from feedstocks sourced in the United States, Canada, and Mexico. The revised model allows biodiesel, renewable diesel, and sustainable aviation fuel producers to accurately calculate tax credits available for fuel produced this year. Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America, says the update provides needed certainty for the industry. "We appreciate this timely update,” Kovarik said. “This increased certainty will help our industry achieve the administration's goals of generating more domestic energy and creating new domestic market opportunities for farmers."

Rural Debt in Brazil Leads to Rising Farm Auctions

Financial stress is mounting in Brazil's farm sector as auctions of creditor-seized farmland continue to climb. According to data compiled by Reuters, rising debt troubles are forcing more Brazilian farmers into bankruptcy or loan defaults. Lower grain prices, high interest rates, rising input costs, and weather-related crop losses have combined to squeeze farm profitability across the country. The southern state of Rio Grande do Sul has been especially hard hit after devastating floods in 2024 damaged crops and farm finances. Producers are also watching weather forecasts closely amid concerns about a potential El Niño pattern that could hurt future yields. Brazil's central bank reports troubled rural credit loans surged to the equivalent of $33 billion. Problem loans now account for nearly 20 percent of outstanding farm credit, up from just 5.5 percent two years ago. One analyst told Reuters the numbers show "a significant deterioration in the financial health of Brazil's agricultural sector.”

Monday Morning NWS Cases Up to 12 Confirmed

Texas agriculture officials are expanding efforts to contain an outbreak of the New World Screwworm as confirmed cases continue increasing in the state. Texas state animal health authorities confirmed 11 cases involving cattle and other livestock, prompting expanded quarantine zones in affected areas. Under the restrictions, livestock cannot leave quarantine zones without authorization. The total number of cases is up to 12, including the confirmed case in New Mexico. News Nation Now said the growing number of cases has raised concerns among ranchers that the parasitic fly could spread farther north into major cattle-producing regions. Producers say the outbreak is especially troubling as confirmed cases move closer to the Dallas area. Officials are urging producers everywhere to closely monitor animals for signs of infestation and report suspected cases immediately. A Texas rancher told local media, "It's unsettling to see the outbreak moving closer. We're all paying close attention and hoping containment efforts work."

Farm Credit System Remains Stable Despite Increasing Financial Risks

The Farm Credit System remains financially strong despite growing stress in parts of the farm economy, according to information presented to the Farm Credit Administration board. As of March 31, the System reported stable earnings and increased capital levels. Total capital reached $86.4 billion, up 7.3 percent from last year, leaving the nation's largest agricultural lender well-positioned to meet the borrowing needs of farmers and ranchers. Loan quality remained sound overall, although credit risks increased. Nonperforming assets rose to 1.09 percent of loans and other property owned, compared to 0.96 percent a year ago, reflecting financial pressure in some agricultural sectors. The report also noted growing economic challenges, including higher energy costs and inflation tied to conflict in the Middle East. Despite expectations for lower net farm income in 2026, farm finances continue to benefit from federal support programs. The System remains "well-positioned to meet the funding and liquidity needs of farmers and ranchers."

USDA Restoring Grazing Opportunities for U.S. Ranchers

The USDA is expanding livestock grazing opportunities on federal lands. Agriculture Secretary Brooke Rollins announced new directives to U.S. Forest Service employees aimed at increasing grazing access, streamlining permit approvals, and reducing regulatory barriers for ranchers operating on National Forest System lands. The directives support a grazing agreement between USDA and the Interior Department and are part of the administration's broader effort to strengthen the U.S. beef industry. Among the changes, the Forest Service will prioritize permitting vacant or closed grazing allotments, maximize grazing flexibility, speed up authorization processes, and increase rancher involvement in management decisions. "America's ranchers are an integral component of our rural economies, our food security, and our national strength," Rollins said. "Today, we are empowering line officers with clear direction and reaffirming grazing as an essential tool for healthy landscapes and vibrant rural communities." USDA also says roughly 23,000 permittees and lessees rely on public grazing lands.

Sugar Producers Support the National Pastime

American agriculture took center field ahead of the 2026 Congressional Baseball Game for Charity. The American Sugar Alliance joined Ducks Unlimited, the National Cotton Council, the U.S. Rice Producers Association, Farm Credit, and the U.S. Peanut Federation in hosting a reception for members of Congress and their staffs to highlight the role farmers play in America's food supply. The groups emphasized that many of the foods enjoyed at baseball games—from sweetened beverages to peanuts and hot dogs—depend on products grown by U.S. farmers and ranchers. Cotton growers also help supply materials used in team uniforms. The American Sugar Alliance used the event to advocate for policies supporting domestic sugar production. The organization is urging Congress to invest in family farms, pass a new five-year Farm Bill, and strengthen protections against excess sugar imports. Maintaining a strong domestic agricultural sector is critical to preserving rural jobs and supporting food security.

Tuesday Watch List

Markets

There are no major reports scheduled for Tuesday. Traders will continue to watch for updates pertaining to the newly announced peace agreement between the U.S. and Iran, as well as monitor U.S. weather.

Weather

A small system is moving through the Midwest on Tuesday and will produce areas of showers and thunderstorms. A couple of stronger storms may be possible there. A front remains stalled near the Gulf Coast where heavy rain will be possible. A small tropical low-pressure center continues near the Texas coastline and has a chance to become a named system Tuesday or Wednesday. Another system will move through the Canadian Prairies into the Northern Plains as well. This will be the most potent system of the week with its main impacts across the Midwest on Wednesday.