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Ag Economy to Improve Slightly in 2026, USDA Projects

By Ryan Hanrahan

Agri-Pulse’s Oliver Ward, Kim Chipman, and Steve Davies reported that “the Agriculture Department is anticipating a slightly easier 2026 for U.S. ag producers, with prices for major commodities nudging higher and input and labor costs moderating, according to USDA Chief Economist Justin Benavidez.”

“Benavidez, who joined the department in January, presented his first annual forecast at USDA’s Agricultural Outlook Forum in Arlington, Virginia, on Thursday, offering an improved economic picture in 2026,” Ward, Chipman and Davies reported. “‘For the first time in several years, the cost of production is beginning to moderate,’ he said. Once adjusted for inflation, the total costs of seed, fertilizer and chemicals is set to fall 0.9%, Benavidez said.”

“Meanwhile prices are set to rise modestly, with USDA anticipating corn, soybeans and wheat all set to rise 10 cents per bushel, Benavidez noted. Cotton, meanwhile, could increase three cents per pound, he said,” according to Ward, Chipman and Davies’ reporting. “‘The story for the year is progress being made on the price,’ Benavidez said. ‘We’re not hitting it out of the park. We’re not solving everyone’s problems in terms of pricing overnight, but price is generally expected to move modestly higher.'”

Source : illinois.edu

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