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.
U.S. dairy producers remain the primary growth engine globally, while tightening supplies in Europe and New Zealand could support export demand for American dairy products.
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Fewer acres and stronger prices suggest disciplined hop production is supporting market balance despite lower output.
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Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
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Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.
December 25, 2025 06:00 AM
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Broader export demand helps stabilize prices and supports stronger marketing opportunities over time.
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Rising production underscores the importance of marketing discipline and margin protection as milk supplies expand.
December 23, 2025 04:09 PM
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Rep. Randy Feenstra, R-IA, details how the “One, Big, Beautiful Bill” Act (OBBBA) supports farmers, biofuels, and rural communities with tax breaks, crop insurance relief, and ag infrastructure.
December 23, 2025 02:01 PM
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The report shows that, despite production challenges, dairy farmers are producing more milk with fewer resources per gallon across the industry.
December 23, 2025 12:45 PM
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Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.
December 23, 2025 12:12 PM
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