USDA to Relocate Key FAS Functions in Reorganization

USDA announced Wednesday it will reorganize its Foreign Agricultural Service, shifting key operations closer to the nation’s agricultural regions while maintaining a smaller presence in Washington. The agency plans to establish a new operational hub in Kansas City, Missouri, and move many headquarters staff out of Washington over time. Some employees will relocate to USDA facilities in Beltsville, Maryland, while a reduced workforce will remain in the capital to handle trade policy, leadership and congressional engagement. Officials said the changes are intended to streamline operations, reduce costs tied to underused facilities and better align the agency with its mission of supporting U.S. agriculture and rural communities. The USDA said no layoffs are planned and that the transition will occur in phases with support provided to affected employees.

USDA Plan Clarifying H-2A Access Welcomed by Dairy Group

The National Milk Producers Federation on Thursday praised new federal guidance clarifying how dairy farms can use the H-2A agricultural worker program, calling it a step toward addressing long-standing labor challenges in the industry. The group said dairy producers have long sought access to H-2A, which has traditionally been limited to seasonal work, leaving year-round operations with fewer options. In a statement, NMPF President and CEO Gregg Doud said the updated guidance “will help open the door for dairies to begin using this program,” and praised federal officials for their role in advancing the effort. The organization said it plans to work with policymakers to secure long-term workforce solutions, including a transition framework for dairy operations. NMPF added that improved labor access could strengthen rural economies and support domestic dairy production.

Plains Drought Cuts Winter Wheat Production Forecast

Persistent drought across the Great Plains is taking a toll on America’s winter wheat crop. According to Reuters and USDA data, the department lowered its forecast for 2026-27 winter wheat production by about 2% from last month. Hard red winter wheat output is expected to fall to its lowest level in decades as drought continues to stress crops across major growing areas. Only about one-quarter of the nation’s winter wheat crop is rated in good-to-excellent condition, among the weakest ratings seen in recent years. The reduced harvest outlook prompted gains in hard red wheat futures as traders reacted to tightening supplies. Despite the lower wheat forecast, USDA left corn and soybean projections largely unchanged, helping limit broader grain market volatility. Analysts say weather conditions during harvest will determine whether additional production losses occur.

South American Crop Growth Pressures U.S. Grain Markets

Growing corn and soybean supplies in South America are creating new challenges for U.S. producers. The USDA increased production estimates for both Brazil and Argentina in its latest supply-and-demand report. Brazil’s corn crop is now projected at 138 million metric tons, while soybean production remains at a massive 180 million metric tons. Argentina’s corn and soybean forecasts also moved higher. The Wall Street Journal reports the larger crops contributed to weakness in Chicago grain futures as traders factored additional export competition into price forecasts. Analysts say abundant South American supplies could make it more difficult for U.S. exporters to gain market share during the coming marketing year. Farmers continue to monitor export demand and weather conditions as they assess potential marketing opportunities ahead of harvest. 

Corn and Soybean Planting Near Completion Nationwide

Most U.S. farmers have nearly finished spring planting as crop conditions remain generally favorable. According to USDA data reported by Successful Farming, 97% of the nation’s corn crop has been planted, while soybean planting is more than 90% complete. Kentucky, Nebraska and North Carolina have already finished corn planting. USDA reports show 67% of the corn crop is rated good to excellent, reflecting favorable weather across much of the Corn Belt. Soybean emergence is also progressing ahead of average in many states. Agronomists say timely rains and moderate temperatures have helped establish crops, although localized concerns remain in portions of the Plains and Upper Midwest. Attention is now shifting toward summer weather patterns, which will play a major role in determining yield potential.

China Soybean Demand Offers Support for U.S. Exports

Fresh soybean purchases by China are providing some encouragement for U.S. growers. The Wall Street Journal reports Chinese buyers have begun placing new orders for U.S. soybeans currently being planted. USDA officials say they remain optimistic China will meet previously announced purchasing commitments during the 2026 marketing year. The renewed demand comes as U.S. farmers face increased competition from record South American production. Analysts say Chinese purchases could help support soybean prices and improve export prospects later this year. Industry observers also note that growing demand from renewable fuel markets is increasing domestic soybean oil consumption, creating another source of support for the oilseed sector. Producers continue to watch trade developments closely as global demand remains a key factor in determining farm income.

New Study Shows Biofuels Are a Catalyst for U.S. Agriculture

A new study from S&P Global Energy says expanded biofuel demand could provide a major boost to U.S. agriculture while strengthening rural economies and improving food and energy security. The report, commissioned by U.S. Farmers and Ranchers in Action, warns that slowing population growth, stagnant food demand, and declining gasoline use could significantly reduce grain demand in the future. Researchers estimate U.S. corn acreage could fall by nearly one-third by 2050 if ethanol blend rates remain unchanged. USFRA Vice Chair Chip Bowling says the findings show biofuels are "not just an energy solution—they're an economic engine that could transform farming's future." The study projects global biofuel production could triple by 2050 under a high-growth scenario. Stronger biofuel markets would support farm income, encourage adoption of new technology, and keep U.S. corn acreage near current levels. Increased biofuel production could boost food and feed supplies by 45 percent compared to baseline projections.

Will Brazil’s Corn and Soybean Production Continue Growing in 2027?

Questions are emerging about whether Brazil can maintain its rapid pace of soybean and corn production growth in the 2027 crop year. Brazil, the world's largest soybean producer and a major corn exporter, is facing several challenges, including low commodity prices, high fertilizer costs, tight credit conditions, and the threat of El Niño-related weather problems. For the past 15 years, Brazil's soybean and corn output has expanded by roughly 6.5 percent annually. USDA forecasts still call for record soybean and corn production in the 2026-27 marketing year, continuing that trend. However, analysts say rising production costs and financial pressures could make those projections difficult to achieve. Brazil relies heavily on imported fertilizer, and higher input costs are squeezing margins that are already near breakeven levels for many producers. Adding to the uncertainty is the potential for a strong El Niño event, which could disrupt soybean planting and impact second-crop corn yields.

Applications Open for 2027 Veteran Farmer Award of Excellence

The American Farm Bureau is now accepting applications for its 2027 Veteran Farmer Award of Excellence. The award, supported by Farm Credit, recognizes military veterans and active-duty service members who have demonstrated excellence in agriculture while making a positive impact in their communities. The winner will receive a $10,000 cash prize along with travel expenses to attend the = Farm Bureau’s Convention in Charlotte, North Carolina, next January. AFBF President Zippy Duvall says, "We're proud to shine a spotlight on veterans for their service to our nation and their meaningful contributions to agriculture and their communities." Last year's recipient was retired Army Command Sgt. Maj. Matthew Rutter of South Carolina. After serving 22 years in the military, Rutter helped launch programs that train veterans for careers in agriculture and assist with the transition to civilian life. Applications are due by Sept. 1. The winner will be announced publicly on Veterans Day.

FSA County Committee Nominations are now Open

The USDA is encouraging farmers and ranchers to step forward and serve on local Farm Service Agency county committees. Nominations are now being accepted for the 2026 election cycle, with forms due to local FSA offices by Aug. 3. FSA county committees help make key decisions on how federal farm programs are administered at the local level, including disaster assistance, conservation programs, commodity support, and county office operations. FSA Administrator Bill Beam says, "Local voices matter, and agricultural producers play an important role in shaping how federal farm programs serve their communities." Eligible candidates must participate in or cooperate in a USDA program and live within a Local Administrative Area that is up for election this year. Producers may nominate themselves, be nominated by others, or be nominated by qualifying organizations. More than 7,700 producers currently serve on FSA county committees nationwide. For more information, contact your local FSA office.

AI Use and Skepticism in Agriculture is Broad

A new survey suggests artificial intelligence is gaining traction on America's farms and ranches, though many producers remain cautious about the technology. Research firm MorganMyers found 75 percent of farmers and ranchers have used AI tools such as ChatGPT or Gemini, with nearly half of those users turning to the technology at least weekly. The survey found AI adoption is highest among dairy producers, younger farmers, and larger operations. Smaller farms, older producers, and many row-crop growers are less likely to use the tools. MorganMyers Senior Vice President Greg Ehm says, "Farmers and ranchers aren't resistant to AI. Our survey confirms they're trying it out and can already see areas where it delivers value." Researchers found most producers use AI for practical business purposes, but trust remains a challenge. Many respondents said AI shows promise but still requires human oversight and validation. Proven results and transparency will be key to broader adoption across agriculture.

CME Group Leader Stepping Down

Leadership changes are coming to CME Group, the parent company of the Chicago Mercantile Exchange and a key marketplace for agricultural futures trading. The company announced that longtime CEO Terry Duffy will step down on March 1, 2027, and transition to the role of executive chairman. He will be succeeded by current President and Chief Financial Officer Lynne Fitzpatrick. Duffy has led CME Group through more than two decades of growth and transformation, helping turn the Chicago-based exchange operator into one of the world's largest derivatives marketplaces. "Leading CME Group through more than 25 years of transformative growth has been among the highest honors of my life," Duffy said in a statement. During his tenure, CME moved from traditional floor trading to electronic markets and completed several acquisitions, including a merger with the Chicago Board of Trade. The leadership transition will be closely watched by agricultural producers who rely on CME markets for grain, livestock, and risk-management pricing.

Thursday Watch List

Markets

Thursday will be the final trading session for the week with grain markets closed on Friday, June 19, in observance of Juneteenth. For reports, USDA will release the weekly Export Sales report at 7:30 a.m. CDT. Later in the afternoon, USDA will release the June Cattle on Feed report at 2 p.m. CDT.

Weather

The remnants of Tropical Storm Arthur have moved into the central Gulf Coast with a ball of heavy rain that will continue deeper into the Southeast on Thursday. A front from a system that went through the Midwest on Wednesday will sag into the South and Southeast, enhancing showers as well. Behind the system in some cooler air, areas of isolated showers will be possible from the Midwest back through the Canadian Prairies.

H-2A Certifications Up 17 Percent So Far in 2026

The H-2A temporary agricultural worker program continues to grow rapidly, with the Labor Department certifying 17 percent more jobs during the first half of fiscal 2026 compared to a year earlier. The program allows U.S. growers to hire foreign workers for seasonal farm labor, helping producers fill critical labor shortages while providing workers with higher wages than they could typically earn in their home countries. Former American Farm Bureau Economist Samantha Ayoub reported in January that “the H-2A program continues to grow, with 13,358 more positions certified in fiscal year 2025 than fiscal year 2024. This marks the first year in program history that over 400,000 workers were requested, highlighting the continued domestic labor shortages American farmers and ranchers face.” These are positions that arise from a proven lack of domestic interest in the seasonal jobs. The H-2A program has grown 185 percent in the last ten years.

States Imposing Livestock Movement Restrictions Because of NWS

States across the country are tightening livestock movement rules as concerns grow over the spread of New World screwworm. Federal authorities have confirmed 12 cases of the parasite since June 3, with all but one detected in Texas. In response, several states are increasing surveillance and imposing new restrictions on animal imports from affected areas. Pennsylvania issued a quarantine order requiring additional inspections and health certifications for susceptible animals entering the state. "Pennsylvania has no confirmed cases of New World Screwworm, but this destructive pest poses a serious threat to our livestock industry, companion animals, wildlife, and agricultural economy," said Pennsylvania Agriculture Secretary Russell Redding. Farm and Dairy said West Virginia, Montana, North Dakota, and South Dakota have also adopted stricter entry requirements for livestock. Agriculture officials say enhanced biosecurity and movement controls are critical to preventing the parasite from spreading into additional livestock-producing regions.

Senators Want More Action Against NWS

A bipartisan group of U.S. senators is urging the USDA to take additional steps to contain the growing New World Screwworm outbreak in the U.S. The lawmakers, led by Senator Amy Klobuchar of Minnesota, sent a letter to USDA expressing concern about the threat the parasite poses to livestock, wildlife, pets, and rural economies. According to the senators, USDA has confirmed 12 active cases of New World Screwworm since early June. "We urge the USDA to take further immediate action to contain and respond to this emergency," the senators wrote. The lawmakers acknowledged USDA's ongoing response efforts, including increased surveillance, sterile fly releases, and coordination with state animal health officials. However, they said the evolving situation requires additional action to prevent further spread. Wisconsin Senator Tammy Baldwin joined 16 other senators in signing the letter. USDA officials continue to stress that the nation's food supply remains safe despite the outbreak.

Export Inspections of Corn Decline

U.S. corn export inspections slowed last week, while soybean and wheat assessments moved higher, according to the latest USDA report. USDA says 1.64 million metric tons of corn were inspected for export during the week ending June 11, down from just over two million tons the previous week and slightly below the volume inspected during the same week last year. Soybean inspections improved to 522,687 metric tons, up from 412,122 tons the week before and more than double the amount inspected during the same period last year. Wheat export inspections also edged higher to 334,292 metric tons. Despite the weekly decline, corn exports remain well ahead of last year's pace. Since the start of the marketing year, USDA has inspected 65.6 million metric tons of corn for overseas shipment, compared to 52.1 million tons during the same period a year ago. Soybean and wheat export inspections continue to trail year-ago levels.

Iowa Pseudorabies Outbreak Successfully Contained

Iowa livestock officials say a recent Pseudorabies outbreak has been successfully contained and eradicated. Iowa Secretary of Agriculture Mike Naig announced that the state has completed the response protocol required by USDA's Animal and Plant Health Inspection Service after the virus was detected in a small commercial swine facility in April. A second round of testing found no additional cases, confirming the virus did not spread beyond the affected operation. Fewer than ten swine facilities had remained under quarantine during the response. All have now tested negative and been released, allowing producers to resume normal animal movements. "Thanks to a strong, coordinated effort, this situation has been resolved, and we were able to successfully contain and eradicate the Pseudorabies virus from Iowa," Naig said. The successful response allows Iowa and the United States to maintain their Pseudorabies-free status for trade purposes. Officials emphasized that Pseudorabies does not pose a risk to human health or food safety.

El Niño Officially Here

Forecasters are reminding farmers and ranchers that no two El Niño weather patterns are exactly alike, but the climate phenomenon often brings important impacts for U.S. agriculture. El Niño typically reaches its peak strength during the winter months and can alter weather patterns across much of the country. During a typical El Niño winter, the jet stream shifts south, increasing the chances for wetter and stormier conditions across the southern U.S. while bringing warmer-than-normal temperatures to much of the northern tier. "Every El Niño is not the same; each one is unique with its own imprint on our weather," said Ken Graham, director of NOAA's National Weather Service. Meteorologists say El Niño can also suppress hurricane activity in the Atlantic while increasing tropical development in parts of the Pacific. For agriculture, the biggest concern remains its influence on precipitation patterns, soil moisture, and crop-growing conditions heading into the next production season.

Wednesday Watch List

Markets

On Wednesday, the Energy Information Administration will release the weekly Petroleum Status report at 9:30 a.m. CDT, including last week's ethanol production. At 1 p.m., the Federal Reserve will announce their latest interest rate decision which will be followed by a press conference with new Fed Chair Kevin Warsh.

Weather

A system is moving into the Midwest for Wednesday and has a good chance of spreading severe storms across the region throughout the day. The primary area for severe storms is from Missouri through Indiana, but adjacent areas of the Midwest could see some severe weather, too. In addition, a tropical low-pressure center along the central Texas coastline may become named later Wednesday. But even if it doesn't, it will be producing heavy rain near the coast as well.

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.

USDA Lowers Winter Wheat Forecast as Plains Drought Persists

USDA lowered its forecast for the 2026 winter wheat crop Thursday, citing continued drought stress across key production areas in the Southern Plains. The June World Agricultural Supply and Demand Estimates report projected winter wheat production at about 1.03 billion bushels, down from earlier expectations. The agency reduced yield estimates for hard red winter wheat, the variety primarily grown in Kansas, Oklahoma and Texas. Hard red winter wheat production is expected to be among the smallest crops in decades. Market analysts noted that prolonged dry conditions limited crop development despite scattered spring rainfall. Reuters reported wheat futures rose following the report as traders reacted to tightening supplies. Analysts interviewed by Agriculture.com said the lower production outlook could support wheat prices if adverse weather continues through harvest. USDA’s next major crop update will come later this month when acreage and grain stock estimates are released, providing a clearer picture of overall U.S. grain supplies.

EPA Biofuel Proposal Boosts Soybean Oil Demand Outlook

A proposal by the Environmental Protection Agency to increase renewable fuel blending requirements through 2027 is drawing strong reactions across the agricultural sector and boosting expectations for soybean oil demand. The proposal would raise Renewable Fuel Standard volumes and encourage greater use of biomass-based diesel and other renewable fuels. Reuters reported soybean oil futures climbed following the announcement as traders anticipated increased demand from biofuel producers. The American Soybean Association welcomed the proposal, saying stronger biofuel markets could create additional opportunities for soybean growers. Livestock organizations, however, expressed concern that increased demand for soybean oil could contribute to higher feed costs. According to EPA documents, the agency expects the proposal to support domestic energy production while reducing greenhouse gas emissions. Industry analysts cited by Bloomberg and Reuters said final blending requirements could significantly influence crop markets, renewable diesel investments and feedstock demand over the next several years. The proposal is subject to a public comment period before becoming final.

School Meal Provision in Farm Bill Sparks Food Sourcing Debate

A proposed provision in the House farm bill that would limit schools’ ability to purchase certain imported foods is generating debate among agricultural groups and school nutrition officials. Supporters say the measure would increase purchases of U.S.-grown products and strengthen domestic agricultural markets. Critics argue the restrictions could reduce menu flexibility and complicate procurement of items that are not widely produced in the United States. According to reporting by The Guardian, school nutrition organizations have raised concerns that products such as bananas and other imported fruits could become more difficult or expensive to obtain under the proposal. Agricultural groups backing the measure contend taxpayer-funded meal programs should prioritize American-grown foods whenever possible. The School Nutrition Association said districts already face budget pressures and supply-chain challenges. House Agriculture Committee supporters argue the proposal aligns with broader efforts to support domestic farmers and ranchers. Lawmakers are expected to continue debating farm bill provisions as Congress works toward consideration of comprehensive agriculture legislation later this year.

California Table Grape Harvest Set for Early Start as Growers Eye Strong Season

California’s table grape industry is preparing for one of its earliest harvests in recent years, with growers reporting vineyards are running roughly two weeks ahead of last season following favorable weather conditions. Harvesting is expected to begin in the Arvin district of Kern County next week, with most growers across the San Joaquin Valley entering production by late June, according to industry estimates. Growers project the 2026 crop at approximately 96 million boxes, with early reports indicating strong fruit size and quality. Philippe Markarian of Mirabella Farms told FreshPlaza that vineyards are about 14 to 16 days ahead of last year, while other industry sources have reported similar advances due to warm spring weather. Growers say favorable growing conditions and adequate water supplies have supported vine health and crop development. Demand is expected to remain strong as retailers transition from imported grapes to domestic supplies. Industry officials say lower freight costs compared with imports from Mexico and South America could support movement and pricing. Growers are also monitoring weather forecasts later in the season, including the potential effects of El Niño conditions on production in California and competing grape-producing regions. 

Maritime Fuel Policy Push Could Open New Market for U.S. Ethanol

Ethanol industry groups are intensifying efforts to ensure renewable fuels are included in emerging international maritime fuel policies, arguing the shipping sector could become a major new source of demand for U.S. agriculture. The push comes as the International Maritime Organization and national governments consider policies aimed at reducing greenhouse gas emissions from ocean-going vessels. Ethanol advocates say the fuel offers a lower-carbon alternative that can be used in many methanol-capable ship engines without significant modifications. The Renewable Fuels Association and other members of the American Biofuels Maritime Initiative are urging policymakers to adopt technology-neutral regulations that allow ethanol to compete alongside other alternative fuels. According to the coalition, expanding marine fuel markets could support U.S. corn growers and rural economies. Interest in ethanol as a marine fuel is growing among global shipping companies. Reuters reported that firms including Maersk and Vale have conducted trials or commissioned vessels capable of operating on ethanol-based fuels as they seek to reduce emissions and diversify fuel supplies. Industry estimates cited by the Renewable Fuels Association suggest capturing just 5% of the global marine fuel market could increase annual ethanol demand by 4 billion to 5 billion gallons and boost corn demand by roughly 1.5 billion bushels. Supporters say policy decisions made over the next several years will help determine whether ethanol becomes a significant player in the maritime fuel market.

Canadian Growers Back National Food Security Strategy

Canadian fruit and vegetable growers and greenhouse producers are welcoming the federal government's new National Food Security Strategy, saying the plan recognizes the importance of domestic food production and supply chain resilience. The strategy, unveiled Thursday by Prime Minister Mark Carney, includes billions of dollars in investments aimed at expanding food processing capacity, strengthening distribution infrastructure, supporting greenhouse production and improving competition in the grocery sector. The government says the initiative is designed to improve food affordability while reducing reliance on imports and strengthening Canada's food system. The Fruit and Vegetable Growers of Canada said the strategy reflects long-standing calls to prioritize domestic food production. The group cited challenges including rising input costs, labor shortages, extreme weather and market uncertainty. The Greenhouse Produce Alliance of Canada also praised the plan, noting greenhouse operations can provide year-round supplies of fresh produce. Industry groups said they support proposed regulatory reforms intended to speed approvals for crop inputs and reduce administrative barriers. They also welcomed measures aimed at increasing competition among grocery retailers and expanding access to Canadian-grown products. The strategy's success, grower groups said, will depend on how effectively the government implements the announced initiatives and whether they result in measurable improvements for producers and consumers.

Monday Watch List

Markets

On Monday, USDA will release the weekly Export Inspections report at 10 a.m. CDT. At 2 p.m. CDT, USDA will release monthly commodity outlooks for oilseeds, wheat, and feed, with follow-up details from last week's WASDE. Finally, at 3 p.m. CDT USDA will release the weekly Crop Progress report, updating traders on conditions around the U.S.

Weather

A front from a weekend storm is stalling near the Gulf Coast, producing some areas of heavy rainfall early Monday. This will be a common occurrence throughout the week, especially with a tropical low-pressure center moving along the front later this week. In addition, a small disturbance will bring showers to the Northern Plains and Upper Midwest.

Trump Questions Future of USMCA as Farm Groups Push for Renewal

President Donald Trump says he is not looking to renew the U.S.-Mexico-Canada Agreement, raising concerns among farm groups that rely on trade with the nation’s two largest agricultural export markets. Bloomberg said Trump criticized trade deficits with Canada and Mexico and suggested the U.S. does not need goods from either country. Under the agreement, the three nations must approve a renewal by July 1 or begin a lengthy review process that could eventually lead to changes or withdrawal. Agriculture organizations are urging the administration to keep the pact in place. More than 150 farm groups have signed a letter supporting renewal, citing the economic benefits of North American trade. During a House Agriculture Committee hearing, Minnesota farmer Jamie Beyer of the American Soybean Association warned that failing to renew the agreement would be “catastrophic.” The USMCA has helped support nearly $1.6 trillion in annual North American trade.

Beef Checkoff Releases New Screwworm Resources for Cattle Producers

As concerns grow over the spread of New World Screwworm, the beef checkoff has launched new resources to help cattle producers identify, prevent, and respond to potential infestations. The National Cattlemen's Beef Association's checkoff-funded Issues Management and Public Relations team has developed educational materials that producers can download free of charge. Resources include identification guides, treatment information, and on-farm posters available in both English and Spanish. Producers can access the materials at BQA.org/Screwworm/Producer. New World Screwworm is a destructive pest whose larvae feed on the living tissue of animals. Infestations begin when adult flies lay eggs in open wounds, potentially causing severe health problems in cattle and other livestock. Industry officials stress that screwworm is not a food safety concern and cannot be transmitted through beef or other food products. Producers are encouraged to familiarize themselves with the new resources and monitor livestock closely for signs of infestation.

Dairy Farmers Take Priorities to Capitol Hill During NMPF Fly-In

More than 80 dairy farmers and cooperative leaders traveled to Washington, D.C., this week to press lawmakers on issues ranging from agricultural labor and trade to animal health and milk labeling. The annual fly-in, organized by the National Milk Producers Federation's Young Cooperators program, included visits to roughly 100 congressional offices. Participants urged Congress to pass a new farm bill in 2026, maintain access to all types of milk in school meal programs, and approve the DAIRY PRIDE Act, which would establish stricter standards for labeling dairy alternatives. Dairy producers also called on lawmakers to support stronger dairy provisions as the United States, Mexico, and Canada prepare to review the USMCA trade agreement. Concerns over the recent detection of the New World Screwworm in the United States were also part of discussions on Capitol Hill. The fly-in followed NMPF's June board meeting, where members received updates on agricultural trade and the farm economy. 

Ethanol Production Holds Steady as Inventories Decline

U.S. ethanol production was unchanged last week while fuel inventories fell to their lowest level in nearly three weeks, according to new data from the Energy Information Administration. Ethanol plants produced an average of 1.108 million barrels per day during the week ending June 5, matching the previous week's output. Production in the Midwest, the nation's largest ethanol-producing region, edged higher to 1.049 million barrels per day from 1.047 million the week before, reaching its highest level in three weeks. Production declined along the Gulf Coast, falling to 25,000 barrels per day from 28,000 barrels a week earlier. Output on the East Coast increased to 13,000 barrels per day, while production in the Rocky Mountain and West Coast regions was unchanged. Meanwhile, ethanol inventories dropped to 24.45 million barrels, down from 24.61 million the previous week. The decline pushed stockpiles to their lowest level since mid-May, a sign of continued demand for the corn-based renewable fuel.

USDA Releases June WASDE Report

The USDA’s World Agricultural Supply and Demand Estimates Report showed little change from the previous month. The 2026-2027 U.S. corn outlook is virtually unchanged relative to last month. Fractionally higher beginning and ending stocks reflect mostly offsetting trade and domestic use changes from the previous year, with adjustments to imports, corn used for ethanol, and exports. The season-average farm price is unchanged at $4.40 per bushel. Soybean supply, use, and price projections are unchanged this month. The U.S. season-average soybean price is forecast at $11.40 per bushel. The U.S. wheat outlook projects smaller supplies and, with no other changes to the balance sheet, lower ending stocks. Supplies are reduced on decreased output as all-wheat production is projected at 1.543 billion bushels. The all-wheat yield dropped a half-bushel lower to 47 bushels. The season-average farm price dropped 50 cents to an even $6 a bushel. 

Wisconsin Dairy Farmers Challenge Federal Checkoff Program in Lawsuit

Three Wisconsin dairy farmers are challenging the federal dairy checkoff program, arguing it forces producers to fund promotional and research efforts such as the “Got Milk?” campaign. The Wisconsin Institute for Law & Liberty filed the lawsuit against Ag Secretary Brooke Rollins and the National Dairy Promotion and Research Board. The suit targets the long-running program that collects mandatory assessments from milk producers to finance national and state-level marketing, research, and promotion initiatives, including groups like Dairy Farmers of Wisconsin. Similar checkoff programs exist across agriculture, including beef, pork, eggs, and potatoes. The complaint describes the program as a “burdensome federal program” that harms small farms, and it criticizes checkoff-funded efforts like the Innovation Center for Dairy Research, which emphasizes environmental stewardship and sustainability. Wisconsin Public Radio says the suit was filed in federal court, and the case seeks to halt or restructure how dairy checkoff funds are collected and used nationwide.

Friday Watch List

Markets

On Friday, USDA will release a series of follow-ups to Thursday's WASDE, such as updating the wheat and feed grain datasets at 1 p.m. CDT. At 2:30 p.m. CDT, CFTC will close the week with the Commitments of Traders report, updating positions as of Tuesday, June 9.

Weather

A cold front is pushing into the Southern Plains, Southeast, and East on Friday. Some thunderstorms are currently found near the front, but additional development is likely throughout the day. The most intense storms appear most likely on the East Coast where the heat and humidity could fuel severe wind gusts. Cooler temperatures are settling in behind the front.

Urea Prices Back to Pre-Iran War Levels

Fertilizer prices have retreated sharply in recent weeks as concerns over prolonged supply disruptions tied to tensions in the Middle East have eased. That’s offering potential relief for crop producers heading into the next growing season. Bloomberg said that urea prices in New Orleans fell to $453.50 per short ton last week, down 36 percent from mid-April and the lowest level since early February. The decline follows fears that conflict involving Iran could disrupt shipments through the Strait of Hormuz, a key route for global fertilizer exports. The drop in fertilizer costs has also pressured grain markets, with prices for corn, wheat, and other commodities moving lower as input cost concerns subside. Nearly half of the world's urea exports originate from countries affected by the conflict, making fertilizer markets highly sensitive to geopolitical developments. Analysts caution that fertilizer markets remain vulnerable to renewed geopolitical tensions and fluctuations in global energy prices.

Ag Groups Urge USDA to Beef Up Its Staff

Over 120 agricultural and conservation organizations are urging Congress to address staffing shortages at local USDA offices, warning that reduced personnel levels are making it harder for farmers and ranchers to access critical programs and services. In a letter to Senate agriculture appropriations leaders, 123 groups called for adequate fiscal year 2027 funding for the Natural Resources Conservation Service and Farm Service Agency. Agri-Pulse said the coalition also supports House-passed language that would prevent the permanent relocation of county-based employees if doing so would leave an office with two or fewer staff members. The organizations cited USDA data showing more than 20,000 employees left the department between January and June 2025, including 22 percent of NRCS staff and 24 percent of FSA employees. "For many American agriculture operations, timely access to USDA staff and resources can directly impact whether an operation remains financially viable during periods of economic stress or weather-related losses," the groups wrote.

Ethanol and DDGS Exports Stay Strong Despite April Pullback

U.S. ethanol exports slowed in April after six consecutive months above 200 million gallons, although shipments remain ahead of last year's pace and continue to support corn demand. According to new trade data, U.S. ethanol exports totaled 171.6 million gallons in April. Canada remained the top destination, importing 64.8 million gallons despite a 14 percent decline from March. Exports to the European Union fell 42 percent to a nine-month low, while shipments to South Korea jumped 57 percent to their highest level in four years. Year-to-date ethanol exports reached 811.3 million gallons through April, up 13 percent from the same period in 2025. Exports of dried distillers grains, a key ethanol coproduct used in livestock feed, also remained strong. April DDGS exports totaled 1.02 million metric tons, led by Mexico, Indonesia, South Korea, Vietnam, and Turkey. For the first four months of 2026, DDGS exports reached 3.98 million metric tons, an increase of 12% compared to 2025.

Groups Tell House Ag Committee that USMCA is Critical for U.S. Farmers

Farm and food industry leaders told members of the House Agriculture Committee that renewing the U.S.-Mexico-Canada Agreement is critical to the future of American agriculture and rural communities. During a hearing on the future of USMCA, representatives from commodity groups, dairy organizations, and the meat industry highlighted the agreement's importance for agricultural exports and market stability. The agreement is scheduled for a formal review beginning July 1. “USMCA has been the gold standard for agricultural trade agreements, providing the certainty farmers and ranchers need to plan, invest, and stay competitive,” said Minnesota soybean farmer Jamie Beyer of the American Soybean Association. Industry groups noted that Canada and Mexico remain two of the most important export markets for U.S. agriculture. Dairy Farmers of America said more than 40 percent of U.S. dairy exports were shipped to the two countries last year. A renewal would avoid uncertainty that could impact farm income and long-term investment decisions.

Funding Available for Programs to Open Global Markets

The USDA is accepting applications for its fiscal year 2027 agricultural trade promotion programs, providing producers and commodity groups with opportunities to expand export markets and boost demand for U.S. products overseas. Applications for the Market Access Program and Foreign Market Development Program will be accepted through Aug. 14. The programs operate as public-private partnerships that help agricultural organizations promote U.S. products internationally and address trade barriers in foreign markets. “At USDA, Farmers First means giving our hardworking farmers, ranchers, and producers the tools they need to feed the world,” said Agriculture Secretary Brooke Rollins. “USDA is using every tool it has to cut through the heavy red tape in overseas markets.” According to the USDA, the trade promotion programs have generated significant returns for U.S. agriculture. The department estimates that every taxpayer dollar invested in the initiatives has returned $24.50 in export value since 1977.

Soybean Export Inspections Drop Sharply

U.S. corn export inspections continued to outpace last year's strong pace during the latest reporting week, while wheat and soybean inspections declined from the previous week. USDA reported corn inspections totaled 1.9 million metric tons in the week ending June 4, up from 1.75 million the previous week and ahead of the 1.72 million metric tons inspected during the same week last year. Wheat inspections were reported at 319,730 metric tons, down from 402,346 tons the previous week but slightly above year-ago levels. Soybean inspections fell to 398,186 metric tons from 505,109 tons the week before and remained well below last year's pace. For the marketing year, corn export inspections have reached 63.9 million metric tons, significantly ahead of the 50.4 million metric tons inspected during the same period last year. Soybean inspections since September total 36 million metric tons, trailing last year's 45.2 million metric tons, while wheat inspections are slightly ahead of year-ago levels.

Thursday Watch List

Markets

On Thursday, USDA will release the weekly Export Sales report at 7:30 a.m. CDT. At 11 a.m. CDT, USDA will release the June World Agricultural Supply and Demand Estimates (WASDE) and Crop Production reports, which will give traders an updated look into USDA forecasts for old and new crop balance sheets in the U.S. and around the globe.

Weather

A system that moved into the Central Plains Wednesday night will move through the Midwest on Thursday. It is already bringing a batch of strong-to-severe thunderstorms from eastern Nebraska into Iowa early Thursday morning. That will spread northeast throughout the day and could remain severe. Additional strong-to-severe thunderstorms will form along this system's cold front as it pushes down into Oklahoma and up through the Great Lakes throughout the day, but especially Thursday afternoon and evening.

Three More NWS Cases, Including the First Outside of Texas

Federal animal health officials have confirmed three additional cases of New World Screwworm in the United States, bringing the total number of detections to five and increasing concerns about the parasite's potential spread. The U.S. Department of Agriculture reported new cases in a calf in La Salle County, Texas, a goat in Gillespie County, Texas, and a dog in Lea County, New Mexico. The detections follow two previously confirmed cases in calves in Texas, marking the first U.S. cattle cases in roughly 50 years. The latest findings expand the geographic footprint of the outbreak beyond South Texas and into a neighboring state. USDA officials said the New Mexico case is believed to be isolated, but additional animals at the dog's home are being inspected while investigators work to determine the animal's recent travel history. New World Screwworm larvae feed on living tissue and pose a significant threat to livestock production. 

Grain and Feeds Association Applauds Ag Appropriations Passage

The National Grain and Feed Association is praising the House passage of the fiscal year 2027 agriculture appropriations bill, saying the legislation includes several provisions aimed at strengthening the nation's grain handling and export system. Among the measures supported by NGFA is a directive for the USDA to develop a contingency plan to maintain official grain inspection and weighing services during future disruptions. The bill also encourages improved coordination between USDA's Federal Grain Inspection Service and the Food and Drug Administration to speed approvals for grain reconditioning plans at export facilities when grain lots require corrective action. USDA's National Agricultural Statistics Service will also maintain key reports and surveys and provide advance notice before making significant changes to data collection programs. "House's passage of the agriculture appropriations bill marks an important step forward for America's grain and feed industry," said NGFA President and CEO Mike Seyfert. The bill now moves to the Senate.

USMCA Study Shows Agreement Lowers Grocery Costs

A new study from Purdue University suggests the U.S.-Mexico-Canada Agreement has helped keep food costs lower for American consumers while creating additional market opportunities for U.S. agriculture. Released by the Corn Refiners Association and the Agriculture Coalition for USMCA, the study estimates North American trade agreements save U.S. households about $700 annually on food purchases, equal to roughly seven percent of total household food spending. Researchers found that every one percent reduction in food tariffs corresponded with an average 2.8 percent decline in consumer food prices over a ten-year period. The report also warns that without USMCA, food tariffs could increase by an average of 7.4 percent, potentially erasing those savings within a decade. "Food affordability remains one of the top concerns for American families, and this study makes clear that USMCA is part of the solution," said Corn Refiners Association President and CEO John Bode.

Work Underway on a Year-Round E15 Bill in the Senate

Efforts to secure year-round nationwide sales of E15 ethanol fuel remain active in the U.S. Senate, offering renewed hope for corn growers seeking expanded demand for their crop. Senate Majority Leader John Thune of South Dakota said that lawmakers are working on new legislation to allow permanent year-round sales of E15, though details of the proposal are still being negotiated. "We are trying to get an E15 bill, and what it looks exactly like is in the process of being determined," Thune told Agri-Pulse. The legislation faces several hurdles. Senate Agriculture Committee Chairman John Boozman (BOZE-man) said E15 falls under the jurisdiction of the Senate Environment Committee and is not expected to be included in upcoming farm bill proposals. Debate also continues over whether an E15 bill should include changes to the Renewable Fuel Standard. While some groups favor a stand-alone E15 measure, others support provisions that would limit biofuel blending exemptions for small refineries.

Produce Industry Hits Washington, D.C.

Fresh produce industry leaders are in Washington, D.C., this week to advocate for policy priorities affecting growers, consumers, and agricultural businesses nationwide. The International Fresh Produce Association's Washington Conference, held June 8-10, brought together hundreds of produce growers, industry representatives, and corporate executives to meet with lawmakers and administration officials on key issues facing the sector. Among the group's top priorities was securing strong funding for federal nutrition programs, including SNAP and WIC, while expanding incentives that encourage fruit and vegetable purchases. Industry leaders also emphasized the need for workforce and immigration reforms to address ongoing labor shortages that can leave crops unharvested and increase food costs. Trade and food safety issues were also a major focus of the conference. Attendees discussed international market access, supply chain challenges, and emerging food safety requirements. Participants also received updates from Food and Drug Administration officials on new human food safety initiatives.

FARM Biosecurity Celebrates Updated Secure Milk Supply Plan

The National Dairy Farmers Assuring Responsible Management Program has released an updated Secure Milk Supply Plan designed to help dairy producers maintain operations during animal disease outbreaks while protecting herd health and the food supply. The revised plan expands beyond foot-and-mouth disease to address other contagious livestock diseases, including H5N1 avian influenza. Updates also include new resources for dairy farmers, cooperatives, and processors, along with revised movement permit guidance covering raw milk intended for animal feed. “It was a great opportunity to collaborate with other farmers, processors, veterinarians, and state and federal officials to update the SMS Plan for our evolving dairy industry,” said Minnesota dairy farmer Tom Walsh. “We put together many commonsense resources to protect our animals and consumers while still milking healthy cows and moving healthy animals.” Industry leaders say the changes reflect evolving disease threats and will help dairy farms prepare for future animal health challenges.

Wednesday Watch List

Markets

On Wednesday, the Bureau of Labor Statistics will release the May Consumer Price Index report at 7:30 a.m. CDT, giving traders and investors an updated look at inflation in the U.S. economy. At 9:30 a.m. CDT, the Energy Information Administration will release the weekly Petroleum Status report, including last week's ethanol production.

Weather

A system is pushing into the Midwest on Wednesday. Though some scattered showers and thunderstorms will occur during the morning, strong-to-severe thunderstorms are expected to develop Wednesday afternoon and evening. All hazards are on the table including a few long-track tornadoes and hurricane-force wind gusts. Additional thunderstorms will develop across the Plains, with a new system moving into the Central Plains Wednesday night.

Canada Prohibits Texas Livestock Imports

Canada has temporarily suspended livestock imports from Texas following the recent detection of New World screwworm in South Texas calves, raising new concerns for cattle producers and animal health officials. The Canadian Food Inspection Agency announced on June 5 that it will halt imports of livestock, including horses, that originated in or were present in Texas within 21 days of entry into Canada. The agency noted that the New World screwworm is not present in Canada and said it will continue monitoring the situation alongside U.S. officials. USA Today said the move follows confirmation by the USDA of two cases in South Texas. The first involved a three-week-old calf found with screwworm larvae in its umbilical area. A second case was confirmed on June 5 in a one-month-old calf located about six miles away. The flesh-eating parasite, spread by screwworm flies, poses a significant threat to livestock health and Texas' $15.5 billion cattle industry if it’s not contained.

New USDA Senior Adviser on Screwworm Preparedness

The USDA named Texas cattle industry leader John Bellinger as Senior Advisor for New World Screwworm Preparedness, a move aimed at strengthening efforts to protect U.S. livestock from the reemerging pest. Agriculture Secretary Brooke Rollins said this expands its response to recent New World screwworm detections in South Texas. Bellinger will help coordinate efforts to evaluate technologies and strategies designed to contain and ultimately eradicate the flesh-eating parasite. “I look forward to working with USDA and our state partners as we continue ramping up testing, detection, and release of our tools to reduce these fly populations,” Bellinger said. Bellinger serves on the Texas A&M University System Board of Regents and has extensive experience in the food safety, meat export, and cattle industries. He is a former chairman of the U.S. Meat Export Federation and the Southwest Meat Association. USDA officials say controlling the pest remains a top priority for protecting the nation's livestock industry.

El Niño is Officially Here in the Pacific

AccuWeather meteorologists say El Niño conditions have likely developed in the tropical Pacific and could have significant implications for U.S. agriculture and weather patterns over the next two years. According to AccuWeather, sea surface temperatures in the equatorial Pacific have risen above the threshold typically used to declare El Niño conditions. Experts believe the pattern could strengthen rapidly and may even develop into a rare "Super El Niño." “The sea surface temperatures are quickly rising in the equatorial Pacific,” said AccuWeather meteorologist Paul Pastelok. “This El Niño will most likely begin soon and strengthen quickly.” For farmers, El Niño can bring wetter conditions to parts of the Southwest, while increasing the risk of drier weather in some already drought-stricken regions of the country. The weather pattern may also reduce Atlantic hurricane activity by increasing wind shear across the basin. AccuWeather forecasts 11 to 16 named storms this hurricane season.

2025-2026 Year-End Numbers Reflect Solid Wheat Sales

U.S. wheat exports posted their strongest performance in five years during the 2025-2026 marketing year, providing a bright spot for wheat growers facing low commodity prices. The marketing year ended May 31 with export inspections totaling 23.7 million metric tons, or 871 million bushels. That was nearly 15 percent higher than the previous year and marked the largest export volume since the 2020-2021 marketing year. Over 55 countries purchased U.S. wheat during the year, helping drive sales beyond initial USDA projections. Demand came from a combination of long-standing customers and emerging markets, highlighting the competitiveness of U.S. wheat despite strong global supplies. “U.S. wheat continued to move steadily into global markets despite a year marked by geopolitical uncertainty, volatile freight costs, and intense competition from other exporting origins,” said Brian Liedl, vice president of overseas operations for U.S. Wheat Associates. USDA raised its export outlook several times during the year as commercial sales consistently exceeded expectations.

Crop Protection Market will Hit $106.2 billion by 2030

Global demand for crop protection products will continue growing over the next five years as farmers work to protect yields and meet rising food demand. According to a new report from MarketsandMarkets, the global crop protection chemicals market will grow from $83.3 billion in 2025 to $106.3 billion by 2030, representing an annual growth rate of five percent. Researchers say growth is being driven by the need to control weeds, insects, and diseases that threaten crop production worldwide. The Asia-Pacific region is expected to remain a key market due to its large agricultural sector, intensive crop production, and growing food demand. The report also highlights increasing adoption of soil treatment products, which help manage soil-borne diseases, nematodes, and other pests that can reduce crop establishment and yields. While biological products continue to gain attention, synthetic herbicides, fungicides, and insecticides remain the dominant tools used by growers because of their broad-spectrum efficacy.

Wisconsin Farm Sells for an Incredible Amount

A recent farmland auction in south-central Wisconsin demonstrated the continued strength of high-quality agricultural land values, with a 208-acre farm selling for nearly $22,000 per acre. The property, located about 15 miles south of Madison, sold in five tracts for a combined $4.55 million during an auction held in late April. The final sale price averaged $21,946 per acre. “It was some of the quickest, most rapid-fire bidding in an auction that I have ever been a part of in several years,” said Peoples Company land agent Adam Crist. “ Agriculture Dot Com said nearly 50 bidders registered for the sale, including local farmers, investors, and potential rural home site buyers. As bidding intensified, the field narrowed to a handful of competitors. A local dairy farmer ultimately purchased all five tracts, adding the land to an existing operation that already borders part of the property.

Tuesday Watch List

Markets

On Tuesday, the U.S. Census Bureau will release their April Trade Balance report at 7:30 a.m. CDT, which will eventually be incorporated into USDA's monthly update by mid-morning. Otherwise, there are no additional major reports scheduled. Traders will remain tuned in to the conflict in the Middle East and weather developments for U.S. crops.

Weather

A busy pattern continues Tuesday as showers move through the eastern Midwest and Tennessee Valley, which could result in some areas of heavy rain and flooding. Another system is moving through the northern Rockies and will move into the Northern Plains later Tuesday. Doing so should cause a significant severe weather event from the Dakotas down to Nebraska, with more isolated severe storms farther south to the Texas Panhandle. 

Animal Protein Continues to be Plentiful for American Consumers

The latest USDA projects show that Americans are expected to have more meat and eggs available in the coming years. USDA forecasts that per capita availability of red meat, poultry, and eggs will increase in 2026 and rise again in 2027. The agency projects that 228.8 pounds of beef, pork, broilers, and turkey per person will be available in 2026, increasing to 229.4 pounds in 2027. Egg availability should climb from 22.5 dozen per person in 2026 to 22.9 dozen in 2027. Broiler chicken is America's most-consumed animal protein. USDA projects broiler availability will reach 105.6 pounds per person in 2026 and 106.5 pounds in 2027. The agency forecasts modest gains in pork and turkey supplies, while beef availability is expected to edge higher in 2026 before declining slightly in 2027. The outlook suggests continued strong demand for animal protein and opportunities for livestock, poultry, and egg producers as domestic supplies expand over the next two years.

Most FNS Employees Won’t Relocate

A majority of employees affected by a planned USDA office relocation say they would rather leave their jobs than move across the country. That’s according to a union survey. USDA recently announced plans to relocate most employees in its Food and Nutrition Service, or FNS, after closing its Washington, D.C.-area headquarters and several regional offices. The agency administers programs including SNAP, school meals, and WIC. According to the National Treasury Employees Union Chapter 226, over 80 percent of surveyed employees said they do not plan to relocate to keep their positions. The survey found that 81 percent of SNAP employees, 78 percent of child nutrition employees, and 90 percent of WIC employees who responded would not move. “The vast majority just cannot move for various reasons — family commitments or spouses who have careers,” a union official said. “Even those who would move said they might relocate short-term but would actively look for another job.”

Meat Institute: NWS is Not a Food-Safety Concern

The Meat Institute is reassuring consumers that meat remains safe following the recent detection of New World Screwworm in a Texas calf. In a statement released after USDA confirmed the case, Meat Institute President and CEO Julie Anna Potts emphasized that the pest does not pose a food safety risk. New World screwworm is a parasitic fly that can cause serious health problems for livestock by laying eggs in open wounds. “American consumers need to know that New World Screwworm is not a food safety concern, and that meat and poultry products are safe to consume,” Potts said. The organization is encouraging meat industry members to work closely with local, state, and federal officials to detect and eliminate the pest. The Meat Institute is asking regulators to consider allowing low-risk livestock movements for slaughter to help maintain processing operations while response efforts continue.

Possible New Weapon to Fight African Swine Fever May Be Coming Soon

New independent research validates FeedARMOR against EhV, the industry-standard surrogate model virus for the African Swine Fever virus. A McNess news release said this is a significant step forward in low-inclusion feed biosecurity. The Schroeder Lab at the University of Minnesota College of Veterinary Medicine tested FeedARMOR against EhV. The results showed a 99.99 percent reduction in a viable virus in only one hour. Feed ingredients are a confirmed introduction pathway for ASFV, and there’s currently no approved vaccine in the U.S. Research has shown that ASFV-like viruses can survive in feed up to 120 days at all storage temperatures, meaning extended storage alone is not an effective mitigation strategy. Since FeedARMOR launched at the 2025 World Pork Expo, two independent university studies have expanded its proven efficacy. A second University of Minnesota study demonstrated up to a 100 percent reduction in Porcine Epidemic Diarrhea Virus. 

Weekly Export Sales of Corn and Beans Lower

Export sales for U.S. corn and soybeans declined during the week ending May 28, while wheat demand remained strong, according to the latest USDA trade data. Corn sales totaled 883,300 metric tons, down 13 percent from the previous week. Japan led all buyers with 336,300 metric tons. Soybean sales also slipped, falling eight percent to 276,900 metric tons. China was the top soybean buyer at 74,800 metric tons. Despite the slower sales pace, corn exports increased seven percent from the previous week to 1.72 million metric tons, while soybean exports held steady at 569,300 metric tons. Wheat provided the strongest demand story in the report. Export sales for the new 2026-27 marketing year reached 838,500 metric tons, led by purchases from South Korea, the Philippines, and Mexico. Wheat exports totaled 397,200 metric tons for the week, up 33 percent from the previous reporting period, signaling continued international demand for U.S. wheat supplies.

Supporters Plot E15 Strategy in the Senate

Supporters of year-round E15 gasoline sales are making another push in Congress, but significant hurdles remain before the measure can become law. Backers of the proposal are working to attach E15 language to a larger must-pass bill in hopes of advancing the policy through a closely divided U.S. Senate. The effort would allow nationwide sales of gasoline containing 15 percent ethanol throughout the year, a move strongly supported by corn growers and the ethanol industry. Industry groups are also negotiating potential concessions for fuel refiners in an attempt to broaden support and avoid opposition that could derail the measure. “This is a complicated, unwieldy process that is very unpredictable,” one industry executive familiar with the discussions told Reuters. “Any change needed to gain support from one group risks losing support from another.” If approved by Congress, the legislation would head to President Trump for his signature. 

Monday Watch List

Markets

On Monday, USDA will release their weekly grain export inspections report at 10 a.m. CDT. In the afternoon, USDA will release the latest Crop Progress report at 3 p.m. CDT, updating corn and soybean crop ratings after both opened the growing season last week with decent scores.

Weather

A couple of fronts and systems will continue to produce widespread showers and thunderstorms across the Plains, Prairies, and Midwest on Monday. Areas of heavy rain will be possible from the Ozarks into the Midwest and Tennessee Valley, which may cause some flooding.

New World Screwworm Confirmed in Texas

Federal and Texas animal health officials are responding after the first U.S. detection of New World screwworm in decades was confirmed in a calf in South Texas. The USDA says larvae were discovered in the umbilical area of a three-week-old calf. New World screwworm is a highly destructive pest that lays eggs in wounds of warm-blooded animals. After hatching, the larvae feed on living tissue, causing severe injuries, animal health concerns, and significant economic losses for livestock producers. The Animal and Plant Health Inspection Service, along with Texas animal health authorities, has activated emergency response measures. Those actions include establishing a 20-kilometer control zone around the detection site, implementing movement restrictions, increasing surveillance efforts, and expanding sterile fly releases. “Officials immediately activated the necessary response protocols,” the agency said. No additional cases had been detected at the time of the announcement, but surveillance and containment efforts are continuing to prevent the pest from spreading.

Livestock Groups React to NWS Confirmation

U.S. livestock groups reacted to the USDA’s confirmation of the New World Screwworm in South Texas. “The National Cattlemen’s Beef Association and our state partner organizations have been working for more than a year to combat the incursion of the New World Screwworm, and we’re doing everything possible to protect the interests of America’s cattle producers,” said NCBA CEO Colin Woodall. The National Milk Producers Federation said while it’s a disappointing milestone, it’s one they’ve also been preparing for. “It’s important to remember this development has no effect on food safety, and that measures to combat both the screwworm and its spread are in place and time-tested,” said NMPF President and CEO Gregg Doud. Texas & Southwestern Cattle Raisers Association President Stephen Diebel said that 18 months’ worth of preparation has Texas cattle producers ready to respond quickly and effectively. “We have identification, treatment, and reporting protocols in place,” Diebert said. 

Missouri River Runoff Forecast Continues Below-Average

Dry conditions across the Missouri River Basin are continuing to reduce runoff and raise concerns about water supplies and navigation later this year. The Army Corps of Engineers reports May runoff above Sioux City, Iowa, totaled just 1.6 million acre-feet, or 46 percent of average. Officials say below-normal precipitation, dry soil conditions, and a lack of mountain snowpack have significantly reduced water flowing into the Missouri River system. The Corps has lowered its 2026 runoff forecast to 15.5 million acre-feet, just 60 percent of average and the lowest level in years, if realized. John Remus, chief of the Missouri River Basin Water Management Division, said, “The absence of snow in the plains and limited precipitation has caused the soils to dry out, and the runoff forecast later this summer and fall has been reduced.” If dry conditions continue, navigation flows could be reduced further, and the navigation season may be shortened.

USDA Trade Mission Underway in Argentina and Ecuador

The USDA is rolling out a new plan designed to help small meat and poultry processors expand operations, reduce regulatory burdens, and improve service to producers who rely on local processing facilities. Secretary Brooke Rollins said the Small Processors Action Plan will make it easier for small and very-small federally-inspected plants to work with USDA while maintaining strong food safety standards. The department is also opening applications for the fourth round of the Meat and Poultry Processing Expansion Program, which includes an additional $60 million in funding. USDA says the plan will improve response times, provide clearer guidance, streamline appeals processes, and increase support for processors with limited technology or connectivity. Small processing plants make up the majority of federally inspected facilities and play a key role in supporting livestock producers and rural economies. “We are removing overly burdensome red tape, improving service, and giving small plants the clarity and support they need,” Rollins said. 

FARM Program Publishes 2026 Drug Residue Prevention Manual

Dairy producers have an updated resource available to help ensure responsible medication use and prevent drug residues from entering the food supply. The National Dairy Farmers Assuring Responsible Management, or FARM Program, has released its \ Milk & Dairy Beef Drug Residue Prevention Reference Manual. The publication provides dairy farmers and veterinarians with current information on best practices for antibiotic stewardship, animal health management, and residue prevention. The updated manual includes guidance related to FDA-authorized drugs being used to combat New World screwworm, as well as the agency’s recently finalized Guidance for Industry 273, which addresses the use of medically important antimicrobial drugs in food-producing animals. “The U.S. dairy industry is committed to antibiotic stewardship and judicious use of all medications used for dairy cattle,” said Dr. Jamie Jonker, chief science officer with the National Milk Producers Federation. The manual also covers recordkeeping, drug administration, residue testing, herd health, and approved treatment options.

Refining Group Sues EPA Over Biofuel Mandate

A major refining industry group is challenging the Environmental Protection Agency’s latest Renewable Fuel Standard requirements, setting up a new legal battle over federal biofuel policy. The American Fuel & Petrochemical Manufacturers, or AFPM, filed a lawsuit in the U.S. Court of Appeals for the D.C. Circuit challenging EPA’s finalized 2026-2027 Renewable Fuel Standard volumes. AFPM argues the rule places excessive compliance costs on fuel refiners and could ultimately increase costs for consumers. According to the organization, compliance costs under the new mandate recently surpassed 35 cents per gallon and could exceed $106 billion over the next two years. The group contends the rule is impractical and economically burdensome. AFPM President and CEO Chet Thompson said, “This is the inevitable consequence of EPA finalizing an unlawful, impracticable regulation.” The lawsuit comes as biofuel policy remains a key issue for both the refining industry and agricultural groups that support renewable fuel demand.

Friday Watch List

Markets

On Friday at 7:30 a.m. CDT, the Bureau of Labor Statistics will release the monthly Employment report with jobs and wage data for May. At 2:30 p.m. CDT, CFTC will update trader positions as of Tuesday, June 2, in the weekly Commitments of Traders report.

Weather

A front is getting dragged into the Midwest on Friday. Showers and thunderstorms continue from northern Missouri into Wisconsin Friday morning while more will develop across the region through the afternoon and especially in the evening around southern Iowa. Though some severe weather will be possible, heavy rain may produce flooding from southeast Nebraska into northern Illinois. Other more limited showers are forecast across the Plains.

Vaden: China Placing New Soybean Orders

China’s renewed demand for U.S. soybeans is providing optimism for American farmers as officials expect the country to follow through on a major purchasing commitment tied to the 2026 crop. Speaking at The Wall Street Journal’s Global Food Forum, Deputy Agriculture Secretary Stephen Vaden said China has already begun placing orders for soybeans currently being planted across the United States. China pledged to purchase 25 million metric tons of soybeans from the 2026 U.S. harvest under an agreement reached with the Trump administration last fall. Trade data suggests demand is already increasing. China imported 3.33 million metric tons of U.S. soybeans in April, more than double the 1.38 million imported during the same month last year. “China has started placing orders for soybeans that are being planted right now across the U.S.,” Vaden said. “We expect them to honor their commitment and continue increasing purchases of American soybeans.”

Food and Ag Groups Call for USMCA Renewal

The future of the U.S.-Mexico-Canada Agreement is drawing attention from agricultural groups across North America as the trade pact approaches its required six-year review this summer. Nearly 160 organizations representing the U.S., Canadian, and Mexican food and agriculture sectors recently sent a joint letter to trade officials in all three countries urging them to renew and strengthen the agreement. The Agricultural Coalition for USMCA, launched by the National Corn Growers Association, helped organize the effort. The groups noted that USMCA has strengthened integrated agricultural markets and helped make North America one of the most food-secure regions in the world since taking effect in July 2020. “USMCA strengthens the resilience of our integrated agricultural markets, and over the past twenty years has made North America the most food-secured region in the world,” the coalition wrote in the letter. The agreement is scheduled for review on July 1, 2026. Farm organizations say USMCA provides certainty for producers.

Ethanol Production Ends May on a Higher Note

U.S. ethanol production moved higher during the final week of May while inventories declined and exports posted a strong increase. That’s according to new data analyzed by the Renewable Fuels Association. For the week ending May 29, ethanol production rose 1.7 percent to 1.11 million barrels per day, equal to roughly 46.5 million gallons daily. Production was slightly above year-ago levels and more than four percent higher than the five-year average for the week. Meanwhile, ethanol stocks fell 1.4 percent to 24.6 million barrels, marking the lowest inventory level in 20 weeks. A bright spot for the industry came from export markets, where ethanol shipments jumped 32.4 percent to 135,000 barrels per day. However, domestic gasoline demand, an indicator of ethanol demand, weakened, falling 7.2 percent to an eight-week low. Refiner and blender ethanol use also slipped 4.1 percent, reflecting softer near-term fuel demand despite continued strength in production and export activity.

USDA Trade Mission Underway in Argentina and Ecuador

The USDA is working to expand export opportunities for American agriculture through a new trade mission to Argentina and Ecuador. The mission is being led by USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg. The effort builds on reciprocal trade and investment agreements signed with both countries earlier this year and is designed to strengthen market access for U.S. farmers, ranchers, and agricultural businesses. USDA says Argentina and Ecuador represent two of the fastest-growing markets in the Western Hemisphere. In 2025, the U.S. exported $166 million worth of agricultural products to Argentina, including seeds and livestock genetics. Exports to Ecuador totaled $595 million, led by soybean meal, wheat, and other feed products. “Trade missions like this one are turning new market access into true market share,” Lindberg said. “We’re converting historic reciprocal agreements into lasting commercial wins for our hardworking farmers, ranchers, and producers.”

Klobuchar: Wildfire Concerns with Dry Weather Conditions

Senator Amy Klobuchar is raising concerns about wildfire preparedness as dry conditions continue across Minnesota and much of the country. During a Senate Agriculture Committee hearing on oversight of the U.S. Forest Service, Klobuchar thanked firefighters and emergency personnel who responded to recent wildfires in Minnesota. She noted that drier spring weather and ongoing forest health challenges, including spruce budworm infestations, are contributing to elevated wildfire risks. Klobuchar said she is focused on ensuring the Forest Service and its partners are prepared for what could be a challenging fire season. She pointed to a recent increase in what she described as sudden or “flash” fires that have emerged quickly across her state. “I'm troubled that more than 1,400 Forest Service employees with so-called ‘red cards,’ which allow them to fight wildfires, departed the agency last year amid broader workforce reduction,” Klobuchar said. Maintaining adequate staffing and resources will be critical as wildfire threats continue to grow. 

New USDA Framework for Big Game Conservation

The USDA unveiled a new conservation framework aimed at protecting migratory big game species while supporting farmers and ranchers across the West. The initiative brings together partners in 17 states to address challenges facing elk, mule deer, and pronghorn. The new framework represents its most coordinated landscape-scale effort through the Farm Service Agency and the Natural Resources Conservation Service to conserve wildlife while keeping working lands productive. USDA officials say the program will help target conservation resources in areas that support both wildlife habitat and agricultural operations. “We know that migratory big game rely on large and connected landscapes to meet their daily, seasonal, and annual needs,” said Undersecretary for Farm Production and Conservation Richard Fordyce. “This new Framework for Conservation Action helps us better target our resources and align our efforts, which benefit wildlife as well as ranching operations.” The effort will provide voluntary conservation opportunities that strengthen both working lands and wildlife habitat.

Thursday Watch List

Markets

On Thursday, USDA will release their weekly Export Sales report at 7:30 a.m. CDT, and traders will look for demand reassurances following the recent price declines for U.S. crops. No other major reports are scheduled for release on Thursday.

Weather

A cold front is getting dragged into the western Midwest on Thursday, which will produce areas of scattered showers and thunderstorms throughout the day. Additional showers and storms will continue across the Central and Southern Plains as well. But a disturbance moving back into the Northern Plains will be the main threat for severe weather Thursday afternoon and evening, centered around South Dakota.

Farmer Sentiment Falls in May as Input Costs Continue to Weigh on Ag Economy

Farmer sentiment slipped again in May as rising input costs and financial uncertainty continued to pressure the farm economy. That’s according to the latest Purdue University-CME Group Ag Economy Barometer. The index declined from 121 in April to 119 in May. The Current Conditions Index fell eight points to its lowest level since December 2024, while the Future Expectations Index edged up one point. Input costs remained producers' top concern. Fifty-one percent of farmers identified high input costs as their biggest challenge, the highest level recorded by the survey. Nearly half of respondents, 46 percent, said rising expenses are preventing improvements in their financial position. Only 14 percent of farmers said their operation is better off financially than a year ago, while 22 percent expect conditions to improve over the next 12 months. The Farm Capital Investment Index dropped three points to 41, signaling reduced willingness to make major purchases. “High input costs are limiting improvements in their financial position this year,” researchers noted.

Trump Cuts Tariffs on Ag Equipment to 15 Percent

President Donald Trump has announced tariff reductions on certain agricultural and industrial equipment, a move that could help ease some cost pressures facing farmers and machinery dealers. Under a new proclamation, tariffs on products like harvesters, bulldozers, forklifts, and HVAC equipment will be reduced from 25 percent to 15 percent. The Wall Street Journal said the administration also lowered tariffs to ten percent on products manufactured abroad that contain at least 85 percent U.S.-produced steel, aluminum, or copper. The action comes as farm equipment manufacturers continue to face challenges from higher raw material costs, labor shortages, and global trade uncertainty. Industry reports indicate nearly 90 percent of equipment dealers expect machinery prices to rise between one percent and six percent through the end of 2026. Despite the headwinds, some analysts see signs of stabilization. According to the Association of Equipment Manufacturers, combine sales rose 3.4 percent year-over-year in April, while tractor sales declined about one percent.

Australian Wheat Crop Drops in 2026

Australia's wheat crop is expected to decline sharply this year, a development that could lend support to global wheat prices as farmers worldwide monitor tightening supplies. The country's 2026 wheat harvest is projected at 26.7 million metric tons, down about nine million tons from last season and the smallest crop in three years. Australia is one of the world's leading wheat exporters, and lower production could further tighten global supplies after weather-related crop losses in parts of the United States helped push wheat prices to two-year highs earlier this spring. Australia’s Ag Bureau said soaring fertilizer costs are a major factor behind the smaller crop forecast. Fertilizer prices have surged following disruptions to supplies from Gulf nations amid the conflict involving Iran, leading some growers to reduce fertilizer applications. “High prices will likely cause farmers to fertilize less, reducing yield potential,” the Ag Bureau said in its quarterly crop report. Significantly dry conditions have also weighed on production prospects. 

FFA Members to Gather in Washington for National Leadership Conference

More than 1,800 FFA members and 250 chaperons will travel to Washington, D.C., this summer for the 2026 Washington Leadership Conference (WLC), one of the FFA Organization’s premier leadership development events. The conference runs from June 2 through July 10 in five week-long sessions and is designed to help students develop leadership skills while exploring the nation’s capital. Participants will learn principles such as exploration, encouragement, advocacy, and service, while creating a Living to Serve Plan they can take home and implement in their communities. The week-long program includes leadership training, visits to national monuments, tours of Capitol Hill, and opportunities to develop community service projects. Students will also visit Arlington National Cemetery or museums on the National Mall before concluding the conference with a reflection on their experience. “The Conference inspires FFA members to become change makers in their communities,” organizers said, emphasizing the conference’s focus on leadership, service, and civic engagement.

Cotton Groups Applaud USDA’s Great American Cotton Plan

Farm and industry organizations are voicing strong support for the U.S. Department of Agriculture’s new Great American Cotton Plan, unveiled last week by Agriculture Secretary Brooke Rollins. The initiative is designed to strengthen the U.S. cotton industry by boosting demand, improving export competitiveness, supporting domestic manufacturing, and reinforcing policies that promote American agriculture in global markets. The American Cotton Shippers Association said the plan represents an important step for growers, merchants, manufacturers, and rural communities that depend on cotton production. According to the group, cotton supports more than 125,000 U.S. jobs and contributes over $21 billion annually to the U.S. economy. The National Cotton Council also welcomed the announcement, noting it complements recent federal actions aimed at strengthening the farm safety net and improving risk management tools for producers. “The plan prioritizes cotton demand growth, export competitiveness, domestic manufacturing, and policies that reinforce American agriculture’s global leadership,” the American Cotton Shippers Association added.

Women in Agriculture Ready to Lead

The American Farm Bureau Federation Women’s Leadership Committee, with support from JBS and CoBank, is unveiling results of a national study to guide programming for women in agriculture over the next five years. Conducted through online surveys and focus groups, the study highlights the roles women play in farming and ranching and identifies opportunities for greater support. Findings show strong confidence among women in balancing farm and family responsibilities and widespread interest in leadership development, with nearly nine in ten respondents interested in future leadership roles. The report identifies five key areas for improvement: caregiving and time constraints, skills training, leadership opportunities, financial security, and wellbeing. About 44 percent expressed interest in technical or equipment training, while 56 percent sought business and financial management education. “Women in agriculture are increasingly stepping into leadership while balancing many responsibilities,” said Isabella Chism, Women’s Leadership Committee Chair. “This study ensures everyone has a seat at the table.”

Wednesday Watch List

Markets

On Wednesday, the EIA will release the weekly Petroleum Status report at 9:30 a.m. CDT, including last week's ethanol production. There are no other major reports scheduled. Traders will as always watch U.S. weather as well as the situation in the Middle East as fighting has again escalated through this week.

Weather

A system that has been spinning around the Northern Plains and Canadian Prairies is finally starting to push eastward on Wednesday, but will continue scattered showers and thunderstorms in the region throughout the day. Showers extend down through the Plains as well, producing some much-needed rainfall in some very dry areas of the country.

Farm Economy Faces Continued Pressure Despite Export Optimism

Financial pressures continue to challenge U.S. farmers as low commodity prices, rising input expenses and higher borrowing costs weigh on farm profitability. Agricultural economists say many producers are entering the summer growing season focused on preserving cash flow and controlling expenses. While recent trade developments have improved expectations for agricultural exports, analysts caution that stronger overseas demand may take time to translate into higher farm income. Higher interest rates have increased financing costs for land, equipment and operating loans, adding pressure to farm budgets. At the same time, fertilizer and other production expenses remain elevated compared with pre-pandemic levels. Farm groups report that many growers are delaying capital investments and emphasizing risk management strategies. Economists say financial conditions vary by region and commodity, but overall margins remain tight for many operations. Industry analysts will closely monitor export sales, weather conditions and commodity markets in the months ahead for signs of improvement.

Farmers Trim Input Costs as Profit Margins Remain Tight

Farmers across the Corn Belt are reducing spending on fertilizer, seed and crop protection products as they prepare for another year of narrow profit margins. Agricultural economists and industry analysts report that many producers are carefully managing expenses after several seasons of declining crop prices and higher operating costs. While fertilizer prices have moderated from record highs seen in recent years, input costs remain elevated compared with historical averages. Farm management specialists say growers are evaluating lower-cost seed options, delaying equipment purchases and reassessing fertilizer application rates to protect cash flow. Some analysts warn that aggressive cost-cutting could affect yields if weather conditions become unfavorable during the growing season. Market observers say producer decisions this spring reflect broader concerns about farm profitability. With uncertainty surrounding export demand, interest rates and global commodity markets, many growers are emphasizing financial discipline while waiting for stronger crop prices and improved market conditions.

Solar Restrictions in Farm Bill Draw Concern From Rural Landowners

A provision in the House-passed farm bill is drawing criticism from farmers and renewable energy advocates who say it could limit opportunities for solar development on productive agricultural land. The measure would restrict certain federal incentives tied to solar projects located on prime farmland, a move supporters say is necessary to preserve land for food production. Critics argue the provision could reduce an important source of income for farmers facing low commodity prices and rising production costs. According to reporting by The Guardian and congressional summaries of the legislation, the debate highlights growing tensions between renewable energy expansion and farmland preservation. Farm groups note that lease payments from solar developers have become a valuable source of revenue for some producers. The issue is expected to receive additional scrutiny as the Senate develops its version of the farm bill. Lawmakers on both sides say they support renewable energy but disagree on how to balance energy development with long-term agricultural production. 

FMCSA Waives Trucking Rules to Speed Fertilizer Deliveries

The Federal Motor Carrier Safety Administration has issued a temporary waiver of certain trucking regulations for drivers hauling fertilizer, citing concerns about fertilizer availability during the growing season. The waiver, effective May 26 through Aug. 26, applies to motor carriers transporting straight or blended fertilizer products for commercial farming and ranching operations in 35 states. The agency said the action was taken in coordination with the U.S. Department of Agriculture to address an urgent fertilizer supply shortfall. Under the waiver, drivers are exempt from federal hours-of-service limits and electronic logging device requirements that normally govern driving time and duty-status recordkeeping. Drivers using the exemption may operate up to 16 hours in a 24-hour period but must take at least six consecutive hours in a sleeper berth or eight hours off duty. Paper records must be maintained if electronic logs are not used. The waiver does not apply to hazardous materials shipments and expires Aug. 26. 

EU Fertilizer Tariff Suspension Could Create New Opportunities for U.S. Producers

The European Union has approved a one-year suspension of customs duties on certain nitrogen fertilizer imports, a move aimed at lowering costs for farmers while reducing the bloc's dependence on supplies from Russia and Belarus. The measure removes tariffs on imported urea and ammonia from most countries for one year. EU officials said the decision is intended to help stabilize fertilizer markets following supply disruptions and rising prices linked to geopolitical tensions and shipping concerns in the Middle East. For U.S. agriculture, the policy could create new export opportunities for domestic fertilizer manufacturers. European buyers are expected to seek additional supplies from the United States, North Africa and Middle Eastern producers as tariffs on Russian and Belarusian fertilizer continue to increase. Industry analysts say stronger European demand could support U.S. fertilizer exports but may also tighten global supplies and influence fertilizer prices paid by American farmers. The EU imported millions of metric tons of nitrogen fertilizer products last year, making it one of the world's largest fertilizer markets.

FARM Program Opens Nominations for Dairy Excellence Awards

The National Dairy Farmers Assuring Responsible Management Program is accepting nominations for its annual FARM Excellence Awards, which recognize dairy farmers and industry professionals for achievements in on-farm management and continuous improvement. The awards honor excellence in four categories: Animal Care and Antibiotic Stewardship, Environmental Stewardship, Workforce Development and FARM Evaluator of the Year. “The FARM Program relies on farmers and FARM evaluators to advance the Program’s mission of continuous improvement,” said Dr. Meggan Hain, chief veterinary officer for the National Milk Producers Federation. “These awards honor participants who embody FARM Program values through their commitment to excellence.” Nominations will be accepted through Aug. 3 and may be submitted by dairy farmers, veterinarians, extension personnel, cooperative and processor staff, community members or the nominees themselves. Eligible farms must have a current FARM Program evaluation and be in good standing. Award winners will be recognized during the Dairy Joint Annual Meeting Oct. 19-21 in Kissimmee, Florida.

Tuesday Watch List

Markets

There are no major agricultural or macroeconomic reports scheduled for Tuesday. Traders will continue to monitor growing season weather throughout the U.S. as well as the ongoing conflict in the Middle East.

Weather

A front will bring one last day of scattered showers to the Southeast on Tuesday, but the main action continues to be in the Plains. A strong low-pressure system is spinning up near the border with scattered showers all around it. Plenty of showers and thunderstorms will develop down south through Texas throughout the day as well.

Fertilizer Price Probe Opens as Farm Margins Tighten

The Federal Trade Commission has opened an industrywide investigation into fertilizer prices after sharp increases during spring planting. Reuters reported that FTC Chairman Andrew Ferguson said the agency is using civil investigative demands to gather documents and testimony. The probe comes as growers face higher fertilizer and fuel costs, drought in parts of the Plains and another year of narrow margins. Reuters said urea prices have climbed 55% since shipping through the Strait of Hormuz was blocked, while another nitrogen fertilizer rose 33%, citing Kentucky Farm Bureau testimony. The USDA, cited by Reuters, said fertilizer has been the largest increase in farm input costs since 2020. The American Farm Bureau Federation reported in an April survey that many farmers could not afford all the fertilizer needed this season. Texas Corn Producers called the probe a step toward fairer markets for growers as planting decisions continue nationwide this spring.