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.
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
February 06, 2026 04:18 PM
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Danny Munch of the American Farm Bureau joined us to discuss USDA’s latest farm income forecast, revisions to prior estimates, and what the updated data means for farmers heading into 2026.
February 06, 2026 12:27 PM
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HHS Secretary Robert Kennedy calls on cattle producers to retain breeding cows while Ivomec receives emergency authorization to prevent New World screwworm.
February 06, 2026 11:48 AM
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Policies aimed at ground beef prices may primarily reshape dairy incentives rather than deliver lasting consumer savings.
February 06, 2026 08:00 AM
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Modest rate relief may come late in 2026, but borrowing costs are likely to stay elevated.
February 04, 2026 11:23 AM
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U.S. Senator Roger Marshall of Kansas discusses expected changes to the 45Z tax credit and what they could mean for agriculture and rural America.
February 04, 2026 11:13 AM
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Purdue University Professor of Agricultural Economics Dr. Jim Mintert shares a closer look at farmer sentiment and the key issues shaping the agricultural economy in January.
February 04, 2026 10:53 AM
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China-led demand continues to anchor soybean and sorghum exports despite weekly swings.
February 04, 2026 06:00 AM
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Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
February 03, 2026 02:26 PM
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