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.
Corn export pace remains the bright spot, but stable ethanol export demand remains a critical support for corn markets.
February 25, 2026 07:00 AM
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Glyphosate and phosphorus are deemed critical to U.S. national defense, ensuring farmers’ access while signaling a shift toward regenerative agriculture. RealAg Radio host Shaun Haney shares insight on the Trump Administration’s move and what it could mean for U.S. farmers moving forward.
February 24, 2026 01:30 PM
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Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
February 24, 2026 11:57 AM
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RFD Farm Legal & Tax expert Roger McEowen shares guidance on the 45Z Clean Fuel Production Credit, its impact on renewable energy and agriculture, and what producers should know moving forward.
February 23, 2026 02:36 PM
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Border closures tied to the threat of New World Screwworm continue to stall Mexican fed cattle imports, tightening U.S. feeder cattle supplies over time — triggering feedlot closures that hinder herd rebuilding efforts, threaten the beef supply chain, and shrink production while consumer prices stay elevated.
February 23, 2026 01:40 PM
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Brooks York of AgriSompo discusses projected prices and how farmers are adapting their crop insurance strategies as the price discovery period comes to a close.
February 23, 2026 12:32 PM
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