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.
Harvest Builds As Logistics And Input Costs Shape Fall Decisions
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Consumer demand for regional food systems is strong, but the challenge lies in scaling production and infrastructure to meet that growing need.
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Dave Kestel, a farmer from Will County and member of the Illinois Farm Bureau, joins us to share a boots-on-the-ground update on the 2025 corn harvest.
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American Coalition for Ethanol’s Ron Lamberty shares the significance of California’s approval, opening up the country’s largest gasoline market to a cleaner-burning, often lower-cost fuel option.
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University of Illinois Ag Economist Gary Schnitker says early projections indicate soybeans will be more profitable than corn in 2026.
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