LUBBOCK, TEXAS (RFD NEWS) — More attention is shifting toward ways to build domestic agricultural demand as export competition intensifies and low crop prices continue to pressure farm income. An analysis from the Ag and Food Policy Center at Texas A&M says the U.S. may need stronger domestic demand tools alongside trade policy if producers are going to improve returns.
The report notes the U.S. agricultural trade deficit has climbed above $100 billion over the last four years. It also says some in agriculture are increasingly questioning whether exports alone can pull row-crop markets out of the current low-price environment.
Texas A&M points to several ways in which Washington already supports domestic demand, including food-aid purchases, Buy American rules, and the Renewable Fuel Standard. The report says those policies show the federal government can influence both direct purchases and private-sector buying incentives.
It also highlights newer proposals now gaining traction in Congress. One would create a tax credit for food and beverage manufacturers that source raw commodities from U.S. farmers. Another would create a tax credit tied to the use of U.S.-grown cotton in clothing.
The report says both proposals fit a broader push to strengthen domestic supply chains and create more outlets for U.S. production. For crop producers facing heavier competition abroad, that could become a more important part of the policy conversation.
Farm-Level Takeaway: Domestic demand policy may play a larger role if export competition continues to limit price recovery.
Tony St. James, RFD News Markets Specialist
Rail consolidation could affect grain basis, freight rates, and service reliability across major producing regions.
February 25, 2026 06:00 AM
·
For communities that depend on agriculture as their primary economic engine, the recession is not defined by headlines on Wall Street. It is defined by the quiet disappearance of the businesses that once processed, serviced, and supported the crop.
February 25, 2026 05:00 AM
·
Alan Bjerga of the National Milk Producers Federation discusses the Dairy Margin Coverage program, recent improvements, and what producers need to know ahead of this week’s enrollment deadline.
February 24, 2026 03:01 PM
·
Glyphosate and phosphorus are deemed critical to U.S. national defense, ensuring farmers’ access while signaling a shift toward regenerative agriculture. RealAg Radio host Shaun Haney shares insight on the Trump Administration’s move and what it could mean for U.S. farmers moving forward.
February 24, 2026 01:30 PM
·
Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
February 24, 2026 11:57 AM
·
Cash flow management and lender communication are becoming critical survival tools for farmers as tightening margins increase risk and borrowing pressure.
February 24, 2026 06:00 AM
·