Between low prices and talks of trade issues, Ag Secretary Brooke Rollins has promised to make farmers whole in the coming year, but she could take a unique approach to make it happen.
Sources tell AgriPulse that Rollins could use Section 32 under the Commodity Credit Corporation, which allows the Department to purchase extra commodities for feeding programs. However, it is written to also reestablish farmers’ purchasing power by making payments.
During the first Trump Administration, USDA used Section 5 authority. However, there is little money left unless Congress refills the account.
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Corn and wheat exports remain supportive, but weaker soybean demand — especially from China — continues to pressure oilseed markets.
China’s pullback is hitting core U.S. commodities hard, reshaping export expectations for soybeans, cotton, grains, and livestock.
Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.
The U.S. has a bountiful corn supply, but markets are waiting for the January WASDE Report, which will include updated yield estimates.
Rising federal debt is increasing pressure on Washington to limit spending, which could tighten future funding and delivery for agricultural programs.
