Farm Relief Slow and Reopening of Straight Good News
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**USDA's new 2027 cost of production forecast reveals farmers may not see meaningful relief from elevated production costs anytime soon.
USDA's preliminary projections show total production costs continuing to rise for most major crops, pushing all commodities to record highs.
Higher production costs are driven not by fuel and fertilizer in 2027, but rather by higher prices for seed, chemicals, repairs, labor, machinery and cash rent expenses.
**The fertilizer industry is welcoming the reopening of the Strait of Hormuz following a new agreement between the U.S. and Iran, calling it a positive development for farmers and global agricultural supply chains.
Roughly 40% of the world's urea fertilizer and about half of global sulfur supplies move through the strait each year.
The Fertilizer Institute economist Veronica Nigh says fertilizer markets may take months to fully recover.
**The National Farmers Union president is urging Congress to approve year-round nationwide sales of E15 gasoline, saying it would benefit both farmers and consumers.
In Agri-Pulse, Rob Larew noted that E15 is currently about 25 cents per gallon cheaper than standard gasoline and could save consumers more than $150 million this summer.
Larew says expanded E15 access would create a stronger domestic market for American corn growers by increasing demand for ethanol production.
