All Ag, All Day is the nation's only full-time farm radio station with studios in Floydada and Nashville, TN (www.AllAgNews.com)
Rail Service Steady As Wheat Exports Hit High
LUBBOCK, TX – U.S. grain transportation systems are showing mostly steady performance as the 2025 harvest approaches, with rail, barge, and ocean freight metrics offering a mixed picture for shippers. According to the USDA’s Agricultural Marketing Service Grain Transportation Report, Class I railroads cut origin dwell times and reduced unfilled grain car orders compared to a year ago, with Union Pacific, CPKC, and BNSF all originating significantly more grain carloads since April.
The report also highlighted a surge in wheat exports. Wheat inspections totaled 34.8 million bushels for the week ending August 21—the highest weekly total since 2013. Indonesia, the Philippines, and South Korea were the top buyers, purchasing approximately 5.5 million, 5.4 million, and 5.3 million bushels, respectively. While barge grain movements fell 27 percent from the prior week, ocean freight activity strengthened, with 25 vessels loaded in the Gulf—up 25 percent from last year.
Farm-Level Takeaway: Farmers and exporters face a mixed transportation landscape. Rail service looks capable of handling record corn harvest volumes, but barge traffic remains volatile. The strong wheat export pace could help support demand, especially as new foreign buyers commit to long-term U.S. supply contracts.
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USDA Reports July Agricultural Prices Mixed Across Sectors
WASHINGTON, DC – USDA’s National Agricultural Statistics Service reported that the July Prices Received Index stood at 136.4, down 1.4 percent from June but 11 percent higher than July 2024. The Crop Production Index slipped slightly to 102.7, while the Livestock Production Index rose to 172.5, up 13 percent from a year ago. Farmers received lower July prices for broilers, grapes, corn, and milk, while higher prices were noted for lettuce, turkeys, hogs, and market eggs. Marketing volumes also shifted, with less movement of cattle, milk, broilers, and oranges, but more sales of grapes, wheat, hay, and cotton.
The Prices Paid Index, which measures input costs, increased to 150.8, up 0.5 percent from June and nearly 8 percent higher than last year. Higher costs for feeder cattle, milk cows, diesel, and nitrogen outweighed declines in concentrates, feed grains, and feeder pigs. The results highlight the continued pressure of rising input expenses, even as commodity returns vary widely across sectors.
Farm-Level Takeaway: Livestock producers benefited from stronger hog, turkey, and egg prices, while crop producers faced weaker corn values. Rising costs for feeder cattle, diesel, and fertilizer inputs continue to squeeze margins across agriculture, underscoring challenges for farm profitability despite stronger year-over-year returns.
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U.S. Extends Sugar Agreements As Mexico Faces Drought
NASHVILLE, TN – The U.S. International Trade Commission voted unanimously this week to continue the Suspension Agreements on Mexican sugar for another five years. The agreements, first signed in 2014 and strengthened in 2017, suspend antidumping and countervailing duties while setting limits on Mexico’s exports to the U.S. The American Sugar Alliance said the decision protects domestic sugar farmers and workers from unfairly traded imports, arguing that without the agreements, U.S. producers would again face injury from dumped and subsidized sugar.
From Mexico’s perspective, the recent drought has already reduced its sugar output, limiting the country’s ability to meet U.S. export quotas under the agreements. Analysts note that Mexico’s constrained production may shift sweetener markets further toward high-fructose corn syrup trade, an area where U.S. corn refiners have historically stepped in. The tension highlights ongoing cross-border challenges in managing sweetener trade, even as the U.S. industry celebrates the ruling as a win for domestic supply security.
Farm-Level Takeaway: The extension provides stability for U.S. sugar producers but could raise input costs for food manufacturers if Mexico’s drought curbs exports further. If sugar supplies tighten, U.S. corn refiners may benefit as food companies pivot toward high-fructose corn syrup as a substitute.
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Farm Aid Programs Still Leave Producers Carrying Heavy Losses
COLLEGE STATION, TX – Despite billions in recent federal aid, most farm programs cover only a fraction of producer losses. Billions from the American Relief Act of 2024 and the newly passed One Big Beautiful Bill were designed to shore up the farm safety net, but the structure and timing of payments mean farmers are still shouldering the bulk of the burden.
According to Dr. Bart Fischer of Texas A&M’s Agricultural and Food Policy Center, economic relief through ECAP covered only 26 percent of losses. In comparison, disaster assistance under SDRP accounted for just 32 percent of actual damages from 2023–24. Fischer notes that while the new farm bill provides $62 billion in improvements, most support will not arrive until October 2026. Using soybeans as an example, projected costs of $639 per acre against expected returns of $536 leave a $103 loss per acre, with ARC and PLC together expected to cover just 37 percent of that gap.
Farm-Level Takeaway: Large relief packages appear impressive on paper, but slow delivery and limited coverage continue to frustrate producers. Without stronger demand drivers—such as new trade deals, expanded ethanol markets, or in-kind food aid—calls for additional disaster or trade assistance are likely to grow.
