Ag Committee Advances Farm Bill 2.0 to Uncertain Future in Full Senate

The Senate Agriculture Committee advanced its 2026 farm bill on a narrow 12-11 party-line vote after Sen. Mitch McConnell’s return enabled action on the measure. The bill includes major agriculture priorities such as year-round E15, mandatory country-of-origin labeling, and the Fertilizer Transparency Act. Democrats objected to a provision requiring states with high SNAP payment error rates to share benefit costs, with The Hill reporting that Chair John Boozman offered a one-year delay, though Democrats argued states need more time. Agri-Pulse reported that Republicans clashed over the absence of “Save Our Bacon” language to override state livestock confinement laws such as California’s Proposition 12, but Boozman declined to reopen amendments. Looking ahead, AgWeb reported that Senate floor action is unlikely before the upcoming election recess. The Washington Sun noted the bill faces a 60-vote Senate threshold and an uncertain path amid expiring farm bill authorities and mounting financial pressures on farmers.

Farm Organizations Welcome Key Measures

Agriculture groups broadly welcomed Senate Agriculture Committee approval of the Agricultural Act of 2026, calling it a key step toward enacting a long-delayed five-year farm bill. The American Sugar Alliance praised committee members for advancing legislation that would provide greater certainty for sugar producers and workers facing economic challenges. Farm Credit Council President and CEO Christy Seyfert said the bill would help farmers weather ongoing uncertainty thanks to provisions that expand credit access, modernize programs, and ease regulatory burdens. The National Association of State Departments of Agriculture also endorsed the legislation, citing the need for a bipartisan farm bill to address rising input costs, weather-related losses, trade challenges, and rural economic stability. National Corn Growers Association President Jed Bower praised the inclusion of year-round E15, a key priority for corn growers. He said expanded E15 access would lower fuel costs, increase ethanol demand, and bolster U.S. energy security. All four groups urged Congress to move the bill toward final passage.

Pork Producers Anticipate Proposition 12 Solution in Next Steps

The National Pork Producers Council welcomed progress on the farm bill. Still, it said lawmakers must address California’s Proposition 12 and the growing patchwork of state livestock housing regulations as the legislation advances. NPPC President Rob Brenneman said pork producers need a five-year farm bill that protects them from having to modify production practices to comply with differing state animal welfare laws. The group argues Proposition 12 increases costs and creates uncertainty for the nation’s more than 60,000 pork producers. NPPC also cited concerns from Illinois swine veterinarians Bill Hollis and Aaron Lower, who argued animal welfare cannot be measured solely by space requirements and warned that state-specific mandates could hinder the industry’s ability to adapt to new research and evolving best practices. As Congress moves further into negotiations, NPPC is asking leaders to craft a solution to conflicting state livestock housing laws.

Food for Peace Provision Gets Applause

U.S. Wheat Associates and National Sorghum Producers praised the Senate Agriculture Committee’s farm bill for permanently transferring the Food for Peace program to the U.S. Department of Agriculture. U.S. Wheat Associates said the change would better align the international food aid program with USDA’s agricultural expertise and longstanding role in delivering humanitarian assistance. The group thanked Senate Agriculture Committee leaders and Sen. Jerry Moran, whose bipartisan amendment was included in the bill, noting the move would benefit both people facing hunger and future customers of U.S. agriculture. National Sorghum Producers also highlighted the Food for Peace provision as a major priority, alongside year-round E15 access. NSP Chair Amy France said placing the program permanently at USDA would strengthen ties between American farmers and international food assistance while reinforcing the use of U.S.-grown commodities in global hunger relief efforts.

Farmers Union Members Call for Updated Policy During Legislative Fly-In

During its annual Legislative Fly-In, National Farmers Union intensified its push for farm policy reform. NFU brought nearly 250 farmers to Washington for meetings with lawmakers and federal officials. Participants urged Congress to pass a farm bill that strengthens the farm safety net, expands competition, restores mandatory country-of-origin labeling, and creates new domestic markets for agricultural products. Following Senate Agriculture Committee approval of the Agriculture Act of 2026, NFU President Rob Larew welcomed several provisions, including mandatory country-of-origin labeling and nationwide, year-round E15 access, calling them meaningful victories for family farmers and consumers. However, Larew argued the legislation does not go far enough to address the economic pressures facing agriculture, including rising input costs, market concentration, and an outdated farm safety net. He said many farmers remain in crisis and warned that incremental changes alone will not reverse financial challenges in rural America.

NCBA Responds to Stand-Up Program Announcement

The new Stand-Up Program within the U.S. Department of Agriculture would provide up to $50 million to help states join or expand federal-state meat inspection programs through the Cooperative Interstate Shipping Program. Currently, 30 states participate under the Meat and Poultry Inspection Program, but only 11 of the 30 eligible states participate in the Cooperative Interstate Shipping Program, according to the National Cattlemen’s Beef Association. NCBA says high regulatory and compliance costs have been barriers to further state participation. Additionally, persistent labor challenges in the processing sector continue to create challenges and uncertainty around efforts to diversify processing options for producers around the country. While the announcement includes funding, structural changes need to happen within the program to help support additional states' participation, NCBA says. The association is looking forward to further details on this new effort in the coming days. 

Friday Watch List

Markets

On Friday, USDA will release the September Cattle on Feed report at 2 p.m. CDT. Shortly after, CFTC will wrap up the week with the weekly Commitments of Traders report, updating positions as of Tuesday, September 15.

Weather

A small system is riding the northern edge of the country on Friday, producing areas of moderate to heavy rain from South Dakota into Wisconsin and Iowa. Other areas of showers will move from the Ohio Valley into the Southeast as well. Temperatures remain hot south of the precipitation while being cooler to the north.

House Passes AM Radio for Every Vehicle Act

The House has passed a bill that would require AM radio access in new vehicles, sending the legislation to the Senate. The House approved the AM Radio for Every Vehicle Act by voice vote Tuesday. The measure would direct the Transportation Department to require automakers to include AM receivers in vehicles sold in the United States. The bill has been promoted as a way to preserve radio access, especially during emergencies. National Association of Broadcasters President and CEO Curtis LeGeyt says millions of Americans rely on AM radio for emergency information, news, and connections. Minnesota Broadcasters Association President Wendy Paulson called the House action a victory for broadcasters and AM listeners. The legislation now moves to the Senate, where a companion bill has been awaiting consideration. The Senate version is sponsored by Senators Ted Cruz and Ed Markey, and it has more than 60 cosponsors.

Senate Leader Open to Diesel Export Ban

Senate Majority Leader John Thune says he is open to considering a ban on U.S. diesel exports as prices reach high levels, a proposal that could draw attention from farmers facing higher fuel costs. Thune told reporters that restricting exports could be one way to ease pressure on diesel prices if supply is available. The average reached $6.27 a gallon Tuesday, according to AAA, up about 80 cents from a month earlier. Diesel prices have been pushed higher by tight global supplies tied to conflicts in the Middle East and Ukraine, along with refinery disruptions. Interior Secretary Doug Burgum said Monday that an oil or fuel export ban would be unlikely to lower energy prices. Thune says he is willing to explore the idea as officials look for ways to address high fuel costs. Forbes said Thune noted that if the U.S. is exporting domestic supply, it’s worth considering a halt to those shipments to help lower domestic prices. 

FAPRI says Farm Income Expected to Decline in 2026

Farm income is expected to decline in 2026 despite stronger crop prices and higher government payments, according to FAPRI. The University of Missouri’s Food and Agricultural Policy Research Institute projects net farm income at $155 billion, down $8 billion from 2025 and below USDA’s September forecast. Crop receipts are expected to increase $16 billion, with corn and soybean receipts accounting for nearly $12 billion of that gain. But higher fuel, fertilizer, and other input costs are expected to outweigh a modest decline in pesticide expenses. Livestock receipts are projected to fall $13 billion, although cattle and calf receipts are expected to rise $9 billion. FAPRI (FAP-ree) projects nearly $13 billion in combined PLC and ARC payments in 2026, up $11 billion from 2025, as higher reference prices and low crop prices boost payments. The report projects record cattle prices continuing, with a cautious turn in the cattle cycle expected in 2027.

USDA Expands Crop Insurance Flexibility for Organic Growers

The USDA is improving crop insurance options for organic cranberry and stone fruit producers, giving them more flexibility beginning with the 2027 crop year. The Risk Management Agency has approved allowing producers to select Enterprise Units or Optional Units by organic farming practice for those crops. RMA Administrator Pat Swanson says the change gives organic and transitional growers the same unit-structure flexibility available to conventional producers. Enterprise Units combine eligible acreage into a single insurance unit, while Optional Units allow producers to divide acreage into smaller units based on practices or land location. That means losses on one unit can be settled without being offset by production from another. The option applies wherever coverage is available. Eligible stone fruit includes apricots, peaches, nectarines, and plums. Producers should contact their crop insurance agent before their sales closing date to discuss coverage and unit options.

FFAR Invests $9.3 Million in Fertilizer Efficiency Research

The Foundation for Food and Agriculture Research is investing $9.3 million to improve nutrient use efficiency across a variety of agricultural systems. The investment, made through the Efficient Fertilizer Consortium, supports 12 research projects involving universities, government organizations, and industry partners. The projects will evaluate fertilizer products and management practices across different soils, cropping systems, and growing conditions. FFAR Scientific Program Manager Dr. Sarah Lyons says growers need science-backed guidance that works under real-world conditions. The research will examine nitrogen and phosphorus enhanced-efficiency fertilizers, along with practices such as cover crops and nutrient stewardship principles. The goal is to provide farmers with information that can support management decisions involving fertilizer use, productivity, and profitability. All consortium-funded projects must follow field trial guidelines developed with input from academia, government, industry, and commodity groups. Cotton Incorporated and other crop organizations are also supporting the research.

Ethanol Production Holds Steady at Above Average

U.S. ethanol production held steady last week while remaining well above year-ago levels and the five-year average, according to Energy Information Administration data analyzed by the Renewable Fuels Association. For the week ending September 11, ethanol output remained at 1.10 million barrels per day, or about 46.16 million gallons daily. Production was 4.2 percent higher than the same week last year and 11.9 percent above the five-year average. Ethanol stocks edged up to 25.2 million barrels, reaching a 19-week high. Inventories were 11.6 percent above year-ago levels and 13.9 percent above the five-year average. Gasoline supplied to the U.S. market increased 2.9 percent to 8.80 million barrels per day, while refiner and blender ethanol inputs rose slightly to 911,000 barrels per day. Meanwhile, ethanol exports jumped 9.5 percent to 161,000 barrels per day, or about 6.8 million gallons daily.

Thursday Watch List

Markets

On Thursday, USDA will release the weekly Export Sales report at 7:30 a.m. CDT, with data as of September 10. In the afternoon, the monthly ERS Livestock, Dairy, and Poultry Outlook will be out at 2 p.m. CDT, along with the weekly Livestock Slaughter report at the same time.

Weather

Scattered rain showers and thunderstorms from eastern Iowa into western Ohio will continue across these areas through the rest of the morning before trending drier Thursday afternoon. Isolated showers and storms could redevelop across northern Illinois, Indiana, and Ohio Thursday evening while a broad area of scattered showers and storms develops across South Dakota and Nebraska.

USDA Seeks Farmer Input on Fertilizer Market

The USDA is asking farmers to share their experiences with fertilizer prices and industry consolidation as federal officials investigate whether the market is operating fairly. Deputy Agriculture Secretary Stephen Vaden made the request during a meeting with farmers in Iowa Friday. He said individual stories could help the Federal Trade Commission investigate potential unfair pricing or anti-competitive practices in the fertilizer industry. Vaden says a large number of farmer experiences would be difficult to dismiss. “Anybody can explain away one thing, you might be able to explain away two or three things, but if we’ve got 100 such stories from farmers all across this country, it becomes very difficult,” Vaden said. The meeting also highlighted efforts to increase competition in fertilizer. Greenfield Nitrogen co-founder Linda Thrasher says her farmer-formed company has spent 12 years trying to develop a regional ammonia facility but has struggled to secure agreements with retailers and cooperatives that fear retaliation from larger providers.

Soybean Export Inspections Rise, But Trail Last Year

U.S. soybean export inspections increased last week, but the pace remains below a year ago, according to USDA. The agency says soybean inspections totaled nearly 673,000 metric tons in the seven days ending September 10. That’s up from about 465,000 tons the previous week, but below the 823,000 tons inspected during the same week last year. Corn inspections fell to 1.53 million metric tons, compared with 1.67 million tons a week earlier. Corn inspections since September 1 are nearly even with last year at 2.17 million tons. Wheat inspections increased to nearly 457,000 metric tons from 431,000 tons the previous week, but remained well below the 758,000 tons inspected during the same week last year. Since the start of the new soybean marketing year, USDA has inspected about 915,000 metric tons for export, down from 1.09 million tons a year earlier. Corn and wheat inspections were also lower compared to last year.

Judge Considers Pause on USDA Relocations

A federal judge is considering a temporary pause on USDA plans to relocate employees across the country, a move that could affect where farmers access agency services. U.S. District Court Judge Vince Chhabria (CHUB-ree-ah) said he may issue an administrative stay to give him more time to review a lawsuit challenging the Agriculture Department’s reorganization. Chhabria said the stay could block USDA from moving forward with relocations until October 2. The court’s next hearing is scheduled for September 29. The case follows a ruling last week allowing USDA to proceed with the relocations while urging plaintiffs to file a new lawsuit if they wanted to continue challenging the plans. Plaintiffs did so this week in Northern California. Chhabria stressed that a stay would not indicate whether the case has merit. He said the issues are complicated and that slowing the schedule would give him more time to review the case properly.

AM Radio Vehicle Bill Heads Toward House Vote This Week

A bill requiring AM radio in new vehicles is headed for a House vote, potentially giving broadcasters a step toward preserving AM access in vehicles. House Majority Leader Steve Scalise (ska-LEES) has scheduled the AM Radio for Every Vehicle Act for a standalone vote sometime this week. The National Association of Broadcasters says the bill has 317 House co-sponsors and 61 in the Senate. The legislation would direct the Transportation Department to issue rules requiring AM receivers as standard equipment in vehicles sold in the United States, without an added cost to buyers. NAB President and CEO Curtis LeGeyt says AM radio is a source of news, information, and emergency communications. “Our listeners have made their voices heard loud and clear,” LeGeyt said, calling AM radio an “indispensable lifeline during emergencies.” A similar bill awaits a final vote in the Senate.

Sorghum Growers Get Clearer Path to 45Z Credit

Sorghum growers are getting a clearer path to benefit from the federal 45Z Clean Fuel Production Credit, potentially creating stronger demand for the crop and its coproducts. The National Sorghum Producers says new IRS guidance and updated Energy Department modeling allow qualifying farm practices to be reflected in a fuel’s carbon-intensity score. Practices including nutrient management, no-till, reduced tillage, and cover crops could help lower that score when properly documented and verified. The guidance also provides transition relief for fuel produced in 2025 and 2026. Farmers still need records supporting fertilizer and manure applications and other information used in calculating carbon intensity. The 45Z credit goes to eligible fuel producers, so it does not automatically mean a payment or premium for every farmer. However, NSP says the program could help growers capture value from low-carbon practices as domestic biofuel demand grows. Distillers sorghum oil is also recognized in several clean-fuel pathways.

U.S. Pork Exports Remain Ahead of Last Year

U.S. pork exports remained ahead of last year’s pace through the first seven months of 2026, despite a slowdown in July. The U.S. Meat Export Federation says exports from January through July reached 1.73 million metric tons, up two percent from a year earlier. Export value increased by one percent to $4.86 billion. Japan was a key driver, with pork exports to that market up 16 percent in volume and 11 percent in value. Central America also reached a new high, moving ahead of Canada as the fifth-largest destination by volume. Colombia remained on a record pace, while demand strengthened in Canada and the Caribbean. The export value averaged $66.06 per head through July, up one percent from a year ago. July shipments were affected in part by restrictions related to porcine reproductive and respiratory syndrome virus, or PRRS, but those restrictions have now been resolved.