More Farmer Aid Unlikely Until After Midterm Elections

Republican lawmakers are warning that additional farm aid may not reach producers fast enough. Politico reported that Republicans are pushing to attach roughly $11 billion in direct farm assistance to a defense spending package. Payments likely would not arrive until spring of 2027. Lawmakers say delays could lead to more farm closures as producers struggle with low margins, high diesel costs, and economic pressures tied to international conflicts and trade disruptions. Meanwhile, The Hagstrom Report said Senate Agriculture Committee Chair John Boozman still expects Congress to approve additional aid and is working with the White House and Agriculture Secretary Brooke Rollins to find a legislative vehicle. According to AgroLatam, the proposed package includes $10 billion in economic assistance plus $1.1 billion for winter freeze losses, on top of USDA’s projected $44.3 billion in 2026 farm payments. The growing level of support has sparked debate. AgWeb and The Wall Street Journal reported that while farm groups say aid is essential, some economists question whether these payments are becoming a permanent source of farm income rather than a temporary safety net. 

Clean Fuels Applauds Effort to Extend Biodiesel Producer Credit

This week, U.S. Senators Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) introduced bipartisan legislation to extend availability of the Small Agri-Biodiesel Producer Credit through 2029. U.S. companies that produce up to 60 million gallons of biodiesel per year using domestic agricultural feedstocks can claim this income tax credit of $0.20 per gallon on the first 15 million gallons of production. The credit will expire on Dec. 31 this year unless Congress adopts the extension introduced today. “Small biodiesel producers are making an outsized contribution to America’s energy security right now, producing lower-cost, drop-in distillate fuel that’s needed to keep the economy moving,” says Vice President of Federal Affairs Kurt Kovarik. “These companies are investing in rural communities, creating and preserving jobs, and running full out to provide cleaner, better, more affordable fuel to meet today’s demand.” 

USDA Boosts Regenerative Agriculture Funding for 2027

The U.S. Department of Agriculture is expanding its Regenerative Pilot Program, increasing available financial assistance from $700 million to $1 billion for fiscal year 2027 and opening applications for farmers and ranchers interested in adopting regenerative conservation practices. USDA says the additional funding will help more producers improve soil health, water quality, and long-term farm resilience. The program will provide $650 million through the Environmental Quality Incentives Program and $350 million through the Conservation Stewardship Program. The agency is also making several changes to improve flexibility and participation. USDA’s Natural Resources Conservation Service will allow state advisory committees to recommend locally relevant conservation practices. The program will also lower the Conservation Stewardship Program’s resource concern threshold from 100% to 75%, reducing barriers to entry. According to USDA, more than 5,100 contracts totaling $851 million were funded through the program last year. Additional enhancements include expanded technical assistance, dedicated funding set-asides, improved tracking systems, and streamlined application procedures. Producers can apply through local NRCS service centers.

Former RFA Chair Offers Insight on Making the Most of 45Z

Former Renewable Fuels Association Chair Jeff Oestmann says ethanol producers should view the 45Z Clean Fuel Production Tax Credit as an opportunity to strengthen their businesses long after the incentive expires. Speaking on RFA's latest Ethanol Report, Oestmann said producers should focus on building a stronger operation for the future rather than simply maximizing short-term tax credit revenue. The Section 45Z credit rewards biofuel producers for lowering the carbon intensity of their fuels and is currently scheduled to expire at the end of 2029. Oestmann said plants can position themselves for long-term success by improving core business fundamentals such as yield, energy efficiency, reliability, procurement, and co-product value. Those improvements can reduce carbon intensity while creating benefits that remain after the tax credit ends. He also urged producers to carefully evaluate carbon-related investments, including securing a market for captured carbon before committing capital to carbon capture projects. "The opportunity for an ethanol plant is really to use the credits. You monetize the credits and turn that into real value and then build a plant for 2031 and use those credits to pay for it."

USGBC Reacts to Ibach's Nomination as USDA Undersecretary

This week, former Nebraska Agriculture Director Greg Ibach was nominated to serve as the U.S. Department of Agriculture’s next undersecretary for trade and foreign agricultural affairs. The U.S. Grains & BioProducts Council, which develops export markets for U.S. barley, corn, sorghum, ethanol, and other related products, says Ibach is right for the job. “Greg has vast experience at the state and national levels in advocating for U.S. farmers in the international marketplace and will do a great job in this role,” says President and CEO Ryan LeGrand. “The Council looks forward to continuing its strong relationship and track record of earning major wins for U.S. agricultural exporters in tandem with its partners at USDA.” USGBC has nine international offices, with representation in 30 countries and programming in more than 70 countries worldwide.

USDA Announces FY 2027 Sugar Program Details

The U.S. Department of Agriculture has announced sugar loan rates and marketing provisions for fiscal year 2027, along with reallocations for fiscal year 2026. USDA’s Commodity Credit Corporation provides loans to sugar beet and sugarcane processors, allowing sugar to be stored after harvest and marketed later when prices improve. Beginning Oct. 1, the national average loan rate will be 24 cents per pound for raw cane sugar and 32.77 cents per pound for refined beet sugar, reflecting increases authorized under the Working Families Tax Cuts Act. Regional beet sugar loan rates range from 32.53 cents per pound in Idaho, Oregon, and Washington to 34.08 cents in California. Raw cane sugar loan rates are set at 22.84 cents per pound in Florida and 25.07 cents in Louisiana. Processors receiving loans must meet minimum grower payment requirements to remain eligible. USDA also reallocated portions of FY 2026 sugar marketing allocations among processors to better reflect their ability to market available supplies and balance the domestic sugar market.

Thursday Watch List

Markets

To begin October, USDA will release its weekly Export Sales report at 7:30 a.m. CDT on Thursday. In the afternoon, USDA's Economic Research Service will release their updated Commodity Costs and Returns estimates at 1 p.m. CDT. At 2 p.m. CDT, NASS will release a series of crop demand reports: the monthly Oilseed Crush, Grain Crush, and Cotton Consumption.

Weather

A front continues to produce heavy rain as it moves slowly through the Central Plains and Midwest on Thursday, with heavy rain falling from Kansas to Michigan. An extension southward through Oklahoma and Texas is also an area seeing heavy rain and thunderstorms. Flooding has been an issue with this front this week, which continues on Thursday as well. Drier weather is developing behind the front across the Northern Plains, a pattern which will continue to spread through the country the rest of the week.