Image by Steve Buissinne from Pixabay
Grain Transportation Sees Mixed Movement Across All Modes
NASHVILLE, TN – Grain movement saw varied performance across transportation modes for the week ending July 26. U.S. Class I railroads originated 25,155 grain carloads, down 9% from the prior week but still 25% higher than last year and 26% above the three-year average. August shuttle railcar bids were $34 below tariff—$3 higher than last week but $216 lower than the same week in 2024. Non-shuttle bids remained at tariff, down $281 from last year.
On the rivers, barge traffic rose sharply. Barged grain movements totaled 843,450 tons, up 15% from the week before and 28% higher than the same week last year. A total of 542 grain barges moved downriver, with 690 unloaded in the New Orleans region—up 16% from the prior week.
Ocean freight also saw active loading. As of July 24, 26 grain vessels had been loaded in the Gulf, an 18% increase over last year. However, only 37 vessels are expected to load in the next 10 days—3% fewer than the same period in 2024. Shipping rates to Japan rose 3% to $54.50 per metric ton from the Gulf and held steady at $29.50 from the Pacific Northwest.
Diesel prices edged down slightly to $3.805 per gallon but 3.7 cents above the same week last year.
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Wheat Trade, Logistics Impacted By New Research, Embargo
LUBBOCK, TX – A new study from North Dakota State University, partly funded by USDA’s Agricultural Marketing Service, examines how changes in the Black Sea region affect global wheat trade flows and logistical costs. The report highlights cost advantages tied to proximity—such as U.S. exports to Mexico, Australia to Asia, and Russia to the Middle East—suggesting port logistics remain critical to export competitiveness.
One scenario shows that expanded Russian port capacity could reduce U.S. wheat exports by up to 875,000 metric tons. However, logistical constraints continue to limit countries like Ukraine and Argentina from gaining Chinese market share, even if phytosanitary restrictions are lifted. An easing of Russia’s wheat export quotas would shift shipment timing and give Russia a larger global share at the expense of U.S. exports.
Meanwhile, domestic wheat logistics are also under pressure. Norfolk Southern Railway embargoed inbound wheat shipments to Ardent Mills’ flour mill in Chattanooga, Tennessee, effective July 25, citing rail congestion. The mill, Tennessee’s largest, also receives wheat by barge—but barge traffic has slowed due to major delays at the Kentucky Lock, caused by nearby repair closures at Barkley Lock.
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More Farms Buying Inputs Online, Smartphone Use Expands
LUBBOCK, TX – According to USDA’s Biennial Farm Technology Use and Ownership report, more farmers are turning to the internet for business needs. In 2025, half of all U.S. farms reported using the internet to purchase agricultural inputs, up 18 percent from 2023. Meanwhile, 29 percent of farms used the internet to market their products—an increase of 6 percent over the last two years.
Overall, 85 percent of farms reported having internet access. Cellular data remains the most common method, used by 74 percent of operations, while 55 percent accessed the internet through a broadband connection.
When it comes to devices, 82 percent of farms had a smartphone in 2025, while 68 percent reported owning a desktop or laptop computer. Interestingly, the number of farms conducting business through non-agricultural websites declined to 45 percent, a 4 percent drop from 2023.
These trends reflect a growing digital presence in agriculture, especially in e-commerce and marketing, while also showing shifts in how and where producers do business online.
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New Tax Policy Benefits Farmers, Boosts Biofuel Credits
LAKELAND, FL – A new federal tax package, part of the “One Big Beautiful Bill Act,” brings key changes for U.S. farmers and rural business owners. According to AgAmerica Lending, the legislation permanently raises the federal estate tax exemption to $15 million per individual beginning in 2026, with annual inflation adjustments. It also preserves the stepped-up basis provision, reducing capital gains taxes for heirs selling inherited farmland.
The bill introduces a four-year capital gains installment option for sales of farmland to active farmers. Additionally, the Section 179 expensing limit has been raised from $1.22 million to $2.5 million, and 100% bonus depreciation is now permanently restored for equipment placed in service after January 19, 2025.
Farmers operating under pass-through entities like LLCs and S-Corps will continue benefiting from the now-permanent 20% Qualified Business Income Deduction. Property eligible for expensing includes barns, grain bins, greenhouses, and other farm-use structures.
Biofuel producers gain from an extension of the 45Z Clean Fuels Production Credit through 2029, limited to feedstocks from North America. New emissions-based rates also support producers using animal manure, while solar and wind credits will phase out starting in 2027.
Other provisions include a permanent Paid Family Leave credit, a renewed New Markets Tax Credit, and immediate expensing of R&D costs. AgAmerica encourages producers to reassess estate plans, entity structures, and capital investment strategies to maximize benefits under the new law.
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Strong Calf Market Brings Options Beyond Herd Expansion
NASHVILLE, TN – With calf prices at their highest levels in years, cow-calf operators have a range of strategies to capitalize on the market beyond simply expanding their herds. According to Kenny Burdine, livestock economist at the University of Kentucky Extension, the current environment is ideal for long-term investments that improve profitability and resilience.
Genetic improvements are one such option. Higher returns may allow producers to invest in better sires or upgrade their cowherds by culling more aggressively and adding higher-quality females. Facility upgrades also make sense, especially for operations looking to implement value-added practices such as health protocols or improved sorting and loading.
Improving grazing systems can reduce winter feeding costs, which are often the highest for cow-calf operations. Interior fencing, water access, and portable mineral feeders can help stretch the grazing season and reduce hay usage.
Stronger revenues also give producers a chance to pay down debt, reduce interest costs, and build working capital—moves that can lower risk and improve margins in less favorable markets.
While herd expansion may still make sense for some, Burdine emphasizes that each operation must assess what fits its goals, resources, and long-term sustainability.
