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.
Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
February 16, 2026 01:00 PM
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Large carry-in stocks across major crops could limit price recovery in 2026/27 unless demand strengthens or weather-related supply reductions occur.
February 16, 2026 12:30 PM
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Stable small business confidence supports rural economies, but lingering cost pressures and uncertainty continue to shape farm-country decision-making.
February 16, 2026 12:03 PM
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Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
February 16, 2026 11:00 AM
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Livestock Conservancy Senior Program Manager Jeannette Beranger explains the upcoming poultry census and ongoing efforts to preserve rare and heritage poultry breeds raised across the U.S.
February 13, 2026 02:20 PM
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Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.
February 13, 2026 08:00 AM
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In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
February 12, 2026 05:11 PM
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Alaska Congressman discusses his new role as Executive Vice Chair of the Congressional Western Caucus and his priorities for the West in the 119th Congress.
February 12, 2026 04:45 PM
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Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.
February 12, 2026 12:16 PM
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