June 26, 2026: Farm Bill Draft Released as Trade Discussions Continue

Today on Ag News Daily. And even, like I said, even those producers that are Prop 12 compliant realize that we can't have this today and something else tomorrow. Something has to get, the patchwork has to be stopped. Welcome back to the weekly edition of the Ag News Daily show. Josie in the studio with us again. We have no show next week due the 4th of July, so it's crazy to think that the summer is almost half over. Yeah, no, it's super crazy for sure. But ahead of next week's 4th of July, what will weather look like? Well, we're going to see some scattered showers into the Midwest through much of this week and into the weekend, providing some favorable moisture for corn and soybean development. Temperatures are expected to remain mild through the weekend before turning hotter and more humid early next week. The warmer weather should accelerate crop growth after a cooler than normal start to the season. Just talking about GDU units last night. We're going to see maybe a later harvest as well, with some of those temperatures coming later in the season. Rain chances are expected to continue into next week, particularly across some parts of the drier corn belt, especially in the north. And for now, the combination of timely rainfall and warmer temperatures is expected to support crop development. However, if the heat lingers longer than expected or rainfall becomes more limited, we could see some crop stress start to develop here as well. And the big question to that is, will we see a summer rally? Well, stay tuned for the markets later in the episode. We chat. Briefly with Tyler Schau of AgMarket.net. Moving on to our crop progress report. Corn and soybean conditions remain steady this week as favorable weather continued across much of the corn belt. USDA rated 68% of the nation's corn crop in good to excellent condition unchanged from last week and well ahead of 58% at the same time last year. Soybean conditions also held steady with 66% rated good to excellent compared to 66% a week ago and 65% a year ago. Crop development remains close to the five year average. Corn silking reached 3% nationally while 97% of the crop has emerged. Soybeans are 90% emerged with 6% beginning to bloom. Winter wheat harvest advanced to 24% complete slightly behind the five year average of 18% but well behind last year's pace of 40%. Overall, timely rainfall and adequate soil moisture continued to support crop development. Corn and soybean conditions remain steady this week as favorable weather continued to support crop development across much of the midwest heading into the end of June. So good to hear. Yeah, definitely have seen a lot of harvest progress with winter wheat. But we'll talk more about crop news after this quick break with tips with Corteva AgriScience. We always encourage people to take a look at the label. And I'm sure a lot of people roll their eyes at that one when we ask them to look at the label. Because it's not the ground. It's not the greatest reading. It's a lot of information, a lot of detail, and it's hard to sift through some of that stuff. But the label has a lot of good information there. It's going to tell you what rate to use and the timing to use, the pests that are going to be controlled, the adjuvants you might want to keep in mind. There's also a section on there dealing with safety of those products. And in case you run into an issue, that's a good document to have in hand. And so make sure you take the time to look at that label before you make any application so that you have the latest information. And you're going to have a better outcome if we start with some good information on the front end that's going to come from that label. And so I would encourage growers, as they're making their plans, to seek out that resource. And they can always visit us at corteva.com/us if they're looking for more information. As growers move into late June and early July, many are watching for signs of disease pressure. After we've seen some of these heavy pressure systems across the Corn Belt, tar spot, ear rot, and southern rust caused significant yield losses in 2025 with the Crop Protection Network estimating southern rust alone was responsible for more than 500 million bushels of lost corn production. With much of the crop entering key growth stages, disease management decisions made over the next several weeks are going to have some major impacts on yield potential. Tyler Harp, a technical product lead with Syngenta, said recently the combination of weather uncertainty and disease pressure is forcing growers to think differently about risk management in 2026. He says protecting crops from both disease and environmental stress is becoming increasingly important as producers look to preserve profitability. With corn prices under pressure, minimizing yield losses may be just as important as increasing yield. those negotiations continue, farmers will be watching to see whether the agreement ultimately leads to increased export demand opportunities. for U.S. agriculture or if it remains tied up in broader diplomatic discussions. So certainly a mixed bag there on that front, Josie. We're going to shift views to New World Screwworm Cases. They continue to rise in the United States with federal officials confirming 19 cases as of this week. 18 of those cases have been identified in Texas and one in New Mexico with the latest detections involving three cattle in Terrell County, Texas. State officials have expanded livestock quarantine zones as they work to contain the flesh-eating parasite and limit its spread across the state and the nation. The growing number of cases comes as USDA and state animal health officials continue surveillance and sterile fly release across the affected areas. Officials say additional livestock cases are expected as response efforts continue since sterile flies prevent future generations, but do not eliminate existing infestations. Livestock producers are being urged to closely monitor animals for wounds or signs of infection and report suspected cases immediately. When I hear the parasitic infection and then all the words that describe it, I just not a pretty picture that that paints, but certainly our hearts go out to those dealing with New World Screwworm and certainly a scary time for livestock producers. As producers manage costs on the farm, we're going to have to make sure that we're doing the right thing. We're going to have to make sure that we're doing the right thing. Consumers are also seeing higher prices at the grocery store. If you're planning a 4th of July cookout, expect to spend a little more at the grocery store this year. A new American Farm Bureau Federation market basket survey found a holiday meal for 10 people will cost up to an average of $73.82, which is up about 4% from last year and the highest nominal total since the survey began back in 2016. Higher ground beef prices were one of the biggest problems for farmers this year. Higher ground beef prices were one of the biggest drivers as cattle producers continue rebuilding herds after years of drought. While some grocery store prices remain elevated, Farm Bureau says food purchasing power has stayed relatively stable compared to other household expenses. Not every item is more expensive this year, though. Potato salad costs fell nearly 18% thanks to lower egg prices and ample potato supplies, helping offset increases in items like beef and strawberries. The annual survey offers a snapshot of food prices heading into one of the busiest grilling holidays of the year. Harvest may still be a few months away, but diesel purchases are already back on the radar for many growers. While crude oil prices have come down from recent highs, diesel prices have remained elevated as inventories stay tight and fuel continues to be exported overseas. That could make both pricing and availability important considerations heading into this fall and heading into harvest. Dave Chatteron of Strategic Farm Marketing says growers do not need to immediately purchase all of their fuel needs, but having at least part of their supply at the end of the year is a good sign this year. He says the biggest concern isn't necessarily higher prices, but whether fuel will be readily available when harvest gets underway. With diesel remaining a major input cost, planning ahead could help producers avoid surprises later this season. While Josie researchers are exploring new ways to create value from existing farm resources, a new market for dairy manure could provide producers with another potential income source. This week, Circularity Fuels announced it has completed what it says is the first end-to-end conversion of agricultural biogas into sustainable aviation fuel. Founder and CEO Stephen Beaton says farmers have long recognized the value of biogas from manure digesters, with many operations already using it to generate electricity or produce renewable natural gas. Beaton says the company's technology, offers another option, particularly for producers who are far from natural gas resources. Pipelines are unable to capitalize on renewable natural gas markets. By converting methane and carbon dioxide from biogas into sustainable aviation fuel, Circularity hopes to tap into growing demand from the aviation sector in the U.S. and abroad. If the technology proves commercially viable, it could create an additional revenue stream for dairy producers in particular, while adding value to existing manure management systems that already are in place. This week, Circularity is talking about how farmers are using biogas to create renewable natural gas resources. This week, Circularity is talking about how farmers are using biogas to create renewable natural gas. This week, Circularity is talking about how farmers are using biogas to create renewable for joining us here today. Tell us a little more about your role with NPPC and your role as a hog producer. Well, I am the past president of NPPC. My term ended in March and Rob Brenneman is now the president. So I'm along for the ride yet for this year. And as a producer, my son and I, we have about 7,200 head of Finnish hogs that we raise from wean to finish. We have a nursery and 2,400 head finishers. And that is our production style. We get our weaned pigs from Horb Family Farms. So that's where we get our pigs from. So that's a little bit about our operation. We also have a grain farm of about a thousand acres. And so it keeps us busy. For sure. Now talking specifically here to the farm realm, there was some text that was approved and shared this week. Tell us. More about some of the priorities that NPPC got in both of the House and Senate committees. Well, we're we're thankful that we were able to get our stuff in for our ship program that really depends upon us getting that through and getting it codified in Congress that that we have that institution so we can have traceability that will really help us in the in the term of if we were ever to get a foreign animal disease. The traceability will be will be dependent upon that in order to get our markets back opened up for trade, which is about 26 to 27 percent of our industry is trade. So very important for us to have that. That is in the farm bill. What is not in the farm bill on the Senate side is are asked for relief from Prop 12. Now, let's talk a little bit about that. Tell us about the solution that NPPC is sharing and advocating for for that Prop 12 solution. Well, right now, we had it in the House side of the bill, and it was bipartisan in the House. And the chairman, Chairman Bozeman, Senator Bozeman, has he does not feel he has the votes to get it with that in the Senate side. So it is not in the text right now. Now, we have the opportunity to have amendments to it. But the biggest thing that we're struggling against right now is a campaign against us as farmers with a lot of misinformation in it. And it's hard for us farmers to raise 30, 30 plus million dollars. We don't have that in our pockets, but it comes freely from those that are opposed to us. So all we've got is our good word and that has got us through the House. And I think it will carry us through on the Senate side. Now, can you touch on a little bit about why there is some misinformation? What is it that's not some some folks might not might not be supporting of what your priority might be at NPPC? Well, the the misinformation campaign is targeting a lot on China. Here about 10, 12 years ago, China was purchased by a investment group out of China, but it has not changed Smithfield at all. Smithfield is the same U.S. company it was then operates the same way. It's the same employees there. It's the same plants there. There are no pigs from China coming to the U.S., none whatsoever. And it's just running as an American company. And they're picking this on Smithfield. But on the same token, as far as for me on my crop side of the five major companies on the supply us with things for our crops, only one is is left that is U.S. supported, is Syngenta. Everything else is foreign investors, whether it be German, whether it be Swiss or a Swiss-Chinese partnership we have now in one of them. So investments are now worldwide in the last 20 years compared to what it used to be just at the New York Stock Exchange. Going back, specifically what we're talking about with Prop 12 is the Save Our Bacon Act is what it's called. Tell me more about what that act tries to do. Well, the Save Our Bacon Act, they try to make it sound like it is for animal husbandry and animal welfare, but it has nothing to do with that. A little bit of history on that is in Ohio, Ohio had something very similar to Prop 12 that was passed by its voters in 2010 and had been in place for eight years prior to Prop 12 coming, Matter of fact, Ohio's producers had switched over to open-pen gestation, which is the main thing of Prop 12. 60 to 70% of them had already made the switch when Prop 12 came out. But none of those Ohio producers that had changed to open-pen gestation could sell into California because of the size of a two-foot by two-foot square. That was in California's law. And California's law went beyond their state borders. If you were going to sell to California, you all had to raise to that standard. Ohio set its standards to show that we were going to raise our pigs in open-pen gestation. But if someone from Indiana wanted to sell pork into Ohio, we weren't restricting that. But California took it a step further, which is why MPPC, we took it to the Supreme Court. And it's a case study at the Supreme Court that will be viewed for years and years on how it came to be. But the general thing of it is, is I have to agree, I think they got it right, that this has to be decided by legislature. And I think right now you see that being done with legislature. We were just the first ones that this was tried on in the ag industry. This could be the same thing that's done to everybody's, complaining about gas prices and stuff right now. What if some state was to say, you can't sell ethanol in our state? You know, that could affect things greatly. And the patchwork is the problem. Because even though that we were first, they changed the rule just a little bit. And they have got proposals in other states right now, a matter of fact, in Colorado, to wanting to raise the 24 square feet to 32 square feet. So that has no. Nothing to do about welfare or animal husbandry for the animals. Do you think there's still a realistic path for a Prop 12 solution to be included in this farm bill? Or is there some other legislative solutions that NPPC is looking at? Well, right now, our best shot is the farm bill. Now, once to understand, there could be the possibility of amendments that could be brought up. And I think we have several senators that are, likely to propose an amendment, you know, to getting it added to the farm bill before the vote. And if that does not work, we are already in it from the House side. So it will go to conference. So we are in one side of the bill. It would be nice to have it in the Senate and the House version both. But with us being in the House version, we still have a chance there. And we will continue our efforts, no matter how much money, that they want to throw at this campaign. Our voices will be heard. Yeah, thanks for sharing, you know, your perspective and take on that. As you also think about the farm bill, is there some other priorities that you're also proud of too? You know, I was looking at some information that you all had shared that the Senate side had included funding for the U.S. Swine Health Improvement Plan. Was there any other success stories there? I know we mentioned some things previously, too, but I just wanted to come back to it. Yeah, the SHIP money, the Swine Health Improvement Plan money is, you know, is in Senator Bozeman made sure that that got in. That is a big issue for us because getting it codified and getting it done and institutionalized at USDA, that sets us up to where we can get in, to where we can be able to prove our movement of pigs, which will allow us to, to continue trade because we will be able to regionalize with that. And trade for the, for us in the pork industry is 26, 27% of our industry is made off of trade. And a lot of the trade that we do, a big portion of that trade is things that Americans don't eat. It, we sell every little bit of the pig, right down to almost the oink of the pig. So it's because of that, that's what makes us viable and into our markets and being able to get us as much as we can out of what our product that we're producing. Now, is there any squeeze on your side, you know, being in the Midwest that you're seeing as a prop 12? I know you mentioned it briefly. I guess the core of the question is, are you seeing any effects yourself as a pork producer? Because there's some of these legislative things that are happening at the federal level. And in California? Well, yeah, I saw it firsthand because our pigs couldn't go, we couldn't go to market in California. And we were one of the first ones that changed to open pen gestation. But because of the way the law was wrote and we were there eight years beforehand, made the investment, but then we could not, we were not able to sell to this market with prop 12 and having just invested and spent money in that, you just don't turn on a dime. Now, to reinvest now, some of our producers, I know producers here in Ohio that weren't done with, you know, the change over to open pen gestation. And they did put some prop 12, you know, remodel some to prop 12. But what has happened is it costs the consumer more money out there. We know for fact on the prices that is costing the average consumer 20% plus some of the cuts are a little bit more than that. You know what it is. And the consumption in California is down 16%. And part of that has to do because of price and part of that has to do because there's not enough product, a prop 12 product out there. So sort of a two fold on that. So what happens in this whole thing is when you change these regulations, the smallest producer is the one that does not have the capital to invest, to keep going and keep changing on an annual basis or biannual basis for whatever new law comes along. And also it just, it just increases the cost. Well, Dwayne, any tips for pork producers to advocate for the industry here? Any tips or tricks that you might have? The tips I have is to get hold of your Congressman. I don't care whether it's the Senator or your representative, because this is going to come at some point in time, this is going to go to committee and go to conference to be put in as one. And some of the most, I can tell you that in Ohio, some of the most, some of the most, the most significant producers that we have are those that are prop 12, because you need to stop. I can't be building a different barn or can't be remodeling a barn all the time because someone wants to change the law. We have to get something established. And I think the Packers would agree with that. It was a nice notion at the beginning, but after several years of this, we see what it is doing and, and we've got the cost to prove it, you know, as far as for the consumer who needs the protein, you know, it's going to be something that they're going to have to deal with themselves. Well, thank you doing it for your time. How can people continue to stay in touch with MP PC efforts? Well, they can contact us through the web or our offices are out there. Just look up MPPC. You can contact them. And a lot of people get our newsletters and stuff on a daily basis. And yes, we, we do represent 60,000 producers and believe me, there's a large difference between the smallest to the largest producers, but we do represent all of them. And that is why the stance has been taken. Something has to get the patchwork has to be stopped. Well, thank you so much, Dwayne, for your time here today. Thank you, Michelle. And you have a good day. It was great to hear from Dwayne, but looking into fertilizer markets, they were showing signs of easing. They were showing signs of easing this week, following the ceasefire agreement between the U S and Iran, but uncertainty remains. So next fertilizer analyst, Josh Linville shared in a recent media update of expectations that shipping through the Strait of Hormuz will resume and have already pushed urea prices lower as traders anticipate improved global supplies of fertilizer and key production inputs. While nitrogen prices have started to soften, Linville says farmers shouldn't expect fertilizer costs to return to historical levels overnight. He notes that domestic fertilizer programs for UAN and in hydrocemonia have yet to adjust, and phosphate prices. remain elevated relative to current grain prices. As growers begin planning fertilizer purchases for this fall and next spring, market conditions and geopolitical developments will continue to play a major role in pricing. So that was our update from Josh Linville. Well, as opposed to us sharing a market update this week, as we look ahead to next week's USDA acreage report, we caught up with Tyler Show of agmarket.net to get his perspective on what producers should expect going into that report. The headline number is always the corn number. And, you know, it doesn't take a rocket scientist to figure out that if you're pulling acres down on corn, it probably means you're pushing higher on soybeans. You know, the bulk of that acreage is going to come out of the heart of the corn belt. And they really grow two crops for the most part, corn and soybeans. And so in March, the USDA printed a 95.3 million acre corn number. We feel like that's probably going to drop a little bit. Our number came in at 94.9 is where we settled at. And there's some methodology behind that. You know, there's some major seed corn companies calling for an even bigger reduction in corn acre numbers. And maybe that actually does occur. I just don't think you see that on the the acreage report that comes out on June 30th. You know, again, this is a survey-based approach where they're surveying farmers. So I feel strongly, our team felt strongly that we'd see a small reduction in corn acres, not a massive reduction in corn acres. You know, there's a few things. You can look at higher fertilizer costs and supply challenges. You know, a few parts of country, had some excessive moisture. And honestly, we probably would have made that number a little bit lower. But don't forget, at the time, farmers really need to be pulling the trigger and go out and put the crop in the ground. December corn rallied to a high of 506 and a half. So we felt like that probably kept some of those acres in the ground. And, you know, just the risk reward on the corn became a little bit better ratio when farmers were looking at actually putting seed in the ground. So I think the numbers will be down, maybe not as much as could have been expected had we not seen that strong price rally there in March into April. Has corn found its seasonal high, or is there still room to move to the upside? Teller weighs in with his market outlook. I hope we get some good pricing opportunities as we move through. One of the really kind of unique things that's happened in the last couple years, typically this mid-June time frame has been a really good time frame for price corn specifically. You know, and for whatever reason, the highs have come earlier the last couple years specifically. I believe last year was very late May is when we pinned those highs on December corn. This year it was early to mid-May where we put those highs in. You know, that could just be happenstance, could be trade flow, money flow. There's a lot of outside factors playing into all of this this year with what was going on in Iran, a lot of geopolitics stuff coming out of Washington, D.C. that just kind of caused some ruckus in the marketplace. Regardless, you know, one of the things I was having a conversation yesterday with some folks about, you know, one of the things that's happened over the last few years, number one, obviously the equipment and the technology that we have to put the crop in the ground has gotten bigger, better, and faster. So I think it's going to be a lot of good things. I think it's going to be a lot of good things. I believe this crop does go in the ground at a faster clip. The other thing that's happened is there's a lot of producers in Iowa and Illinois that plant soybeans early, get a lot of the beans in the ground, and then come back in and go with corn. I don't know if any of that has a major effect or reason why we see those highs coming earlier in the growing season. And it could just be tied to the fact that the last few years we've had really good weather in May and June, and the market's really seen no reason to get in the ground. I believe this crop does go in the ground. Well, certainly some great commentary from Tyler. We appreciate his time. And you can catch his full conversation on the podcast next week in lieu of our regularly scheduled podcast to celebrate the 4th of July. We'll be off, but you can catch that full conversation with Tyler on YouTube and social media. But Josie, heading into the 4th of July, big plans. You said you're going to grill out, but it's America's 250th birthday, so you better make it a good one. Yes, I will. I will. I hope you do, too. Well, we'll look forward to it. We look forward to seeing all of you back in a few short weeks. We hope you have a safe and happy 4th of July, and happy birthday to America. Josie, what do you say with that? Will you let the people go? Let's let them go.