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.
Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
December 04, 2025 07:00 AM
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Tight cattle supplies continue to drive lower beef output despite heavier weights.
December 04, 2025 05:00 AM
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Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
December 03, 2025 06:52 PM
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Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
December 03, 2025 01:52 PM
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While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
December 03, 2025 01:36 PM
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December 02, 2025 11:38 AM
Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
December 02, 2025 06:17 AM
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Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
December 01, 2025 05:09 PM
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The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
December 01, 2025 05:03 PM
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