NASHVILLE, TENN. (RFD NEWS) — Energy markets are sending conflicting signals to agriculture, with lower long-term fuel prices but continued short-term volatility in heating and fertilizer inputs.
The U.S. Energy Information Administration’s February Short-Term Energy Outlook (PDF Version) projects Brent crude oil averaging about $58 per barrel in 2026 and $53 in 2027 as global production continues to outpace demand and inventories build. Despite recent geopolitical disruptions, expanding output worldwide is expected to keep diesel and fuel costs generally softer over time.
Natural gas tells a different story in the near term. The Henry Hub price averaged $7.72 per MMBtu in January after winter weather tightened supplies. Storage levels are now projected to end winter about 8 percent lower than previously expected. Prices should moderate later as drilling increases, with averages near $4.30 this year and $4.40 in 2027.
U.S. natural gas production is forecast to grow 2 percent in 2026, while rising solar generation and modest coal use help meet expanding electricity demand from industry and data centers.
Lower propane prices are also expected as higher gas production boosts supply.
Long-term demand uncertainty is reshaping specialty crop strategies as producers adapt to fewer, older consumers.
January 07, 2026 08:01 AM
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Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
January 07, 2026 06:00 AM
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Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
January 06, 2026 03:09 PM
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Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
January 06, 2026 02:46 PM
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Preserving equity through active risk management remains critical in a volatile, supply-driven market.
January 06, 2026 06:00 AM
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USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
January 05, 2026 03:58 PM
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Weather, Tight Supplies, and Planning Shape Farm Decisions
January 05, 2026 03:23 PM
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Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
January 05, 2026 03:08 PM
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Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
January 05, 2026 03:00 PM
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