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.
Mike Newland with the Propane Education & Research Council shares how producers can prepare for winter weather and the benefits of propane.
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For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
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Texas Cattle Feeders Association Chairman Robby Kirkland explains how the ongoing U.S.-Mexico border closure impacts feed yards that rely on Mexican cattle due to the New World Screwworm.
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Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
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Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
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