Tuesday January 06 Ag News - Farm Debt on the Rise - Bennett Steps Down from UNL - HPAI in Butler Co - CVA Hosts Winter Grain meetings - and more!

Climbing Farm Debt  

Weakening farm income for crop producers, increasing operating expenses, and rising feeder cattle prices led to more farm debt in 2025. According to Ty Kreitman of the Federal Reserve Bank of Kansas City, the volume of new farm operating loans nationwide was about 20% greater in the 3rd quarter of 2025 compared to the same quarter in 2024, and the average dollar size of loan was 30% more. Over 40% of Nebraska lenders reported higher loan demand, one of the highest in the Tenth District.

The Kansas City bank also reported slightly lower loan repayment rates across the Tenth District. Nebraska, though, was one of two states where bankers reported slightly improved repayment rates. However, while repayment rates improved in Nebraska, the proportion of loans on banks’ watch and classified lists rose to about 9% and 4%, respectively. Lenders also reported a modest increase in asset liquidation. More lenders said borrowers planned to sell assets to strengthen farm finances and the share of lenders who indicated borrowers did not plan to sell assets declined from 60% to 20%. Thus, loan volume, size, and repayment rates suggest producer financial health at the end of 2025 was slightly weakened compared to the beginning of the year. 



UNL chancellor stepping down Jan. 12

Rodney Bennett will step down as chancellor of the University of Nebraska–Lincoln effective Jan. 12, according to a message shared with the campus community.

The announcement comes after months of criticism, including UNL faculty leaders overwhelmingly passing a resolution expressing no confidence in Bennett’s leadership. The Faculty Senate voted 60–14 to approve the advisory resolution, the first no-confidence vote against a UNL chancellor in the university’s nearly 157-year history.

In his message announcing his departure, Bennett highlighted accomplishments during his tenure, including stabilizing enrollment, increasing incoming freshman numbers, setting records for first-year retention and six-year graduation rates, expanding sponsored research across multiple disciplines, advancing statewide extension efforts, reaching record fundraising milestones, and developing a financial sustainability plan.

Faculty criticism largely centered on Bennett’s handling of a $27.5 million budget reduction plan, including proposals to eliminate four academic programs. Faculty leaders said the process lacked transparency and sufficient shared governance, concerns Bennett and university leadership have disputed.

Bennett joined UNL as chancellor in July 2023. His contract is set to expire June 30 unless extended by the regents.



NDA REPORTS CASES OF HPAI IN COMMERCIAL AND BACKYARD FLOCKS

The Nebraska Department of Agriculture (NDA) is reminding poultry owners to continue to monitor for and protect their birds against Highly Pathogenic Avian Influenza (HPAI). In late December NDA in conjunction with the U.S. Department of Agriculture (USDA), confirmed a case of HPAI in a commercial flock in Butler County.  Since November, HPAI cases have also been confirmed in small backyard flocks in Keith, Howard, Washington and Scotts Bluff counties. 

“While these cases are not unexpected and coincides with the ongoing wild bird migration and what we are seeing in other states, it does serve as an important reminder for Nebraska poultry producers to stay vigilant in protecting their flocks,” said State Veterinarian Dr. Roger Dudley.  “Producers should know and monitor for HPAI symptoms and follow strict biosecurity practices, which can significantly reduce the risk of the disease affecting their flocks.”

What is HPAI?
HPAI is a highly contagious virus that spreads easily among birds through nasal and eye secretions, as well as infected food, water, and manure. The virus can spread in various ways from flock to flock, including by wild birds during migratory season, through contact with infected poultry, by equipment, and on the clothing and shoes of caretakers. Wild birds can carry the virus without becoming sick, while domesticated birds can become very sick and die.

What are the clinical signs of HPAI in birds?
Symptoms of HPAI in poultry include: a decrease in water consumption; lack of energy and appetite; decreased egg production or soft-shelled, misshapen eggs; nasal discharge, coughing, sneezing; incoordination; and diarrhea. HPAI can also cause sudden death in birds even if they aren’t showing any other symptoms. HPAI can survive for weeks in contaminated environments.

Resources for poultry producers
Resources are available for poultry producers at nda.nebraska.gov/animal/avian/ and from the USDA at https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza. Poultry experiencing signs of HPAI or unusual death should be reported to NDA at 402-471-2351 or the USDA at 866-536-7593.



Gov. Pillen Presents Annual State Threat Assessment
 
Against the backdrop of a KC-135 Stratotanker and an audience that included members of the Nebraska National Guard and the Committee on Pacific Conflict, Governor Jim Pillen announced the publication of the Annual State Threat Assessment. The report is a product of the Committee, which was created through the passage of LB 1300 in 2024. It was the first such committee created among U.S. states.  
 
The report provides a non-classified overview of potential threats facing Nebraska, and concrete actions the Governor’s administration has taken during the 2025 calendar year to mitigate them. Among the findings identified in the assessment -- the administration has maintained aggressive enforcement of new statutory protections, expanded readiness capabilities and pursued governor-led trade outreach to trusted Indo-Pacific partners.  
 
There are three categories that are top priorities within the administration – agriculture and food security as national security, securing the homeland, and cybersecurity and protection of state digital infrastructure. Each area is outlined below, with a summary of concerns and actions as identified by the Committee on Pacific Conflict.
 
Agriculture & Food Security as National Security
Nebraska’s agriculture industry plays a key role in our state – with a total of 44 million acres of farms and ranches that generate approximately 5.4% of the total U.S. farm sales. China’s dominance in key supply chains enables the use of economic coercion against countries that adopt policies that Beijing opposes. Through this, it creates restrictions on key materials like gallium and germanium – which are used in agricultural technologies such as precision farming equipment and pharmaceuticals.  
 
With a dependency on China, this could disrupt Nebraska’s fertilizer and biotech inputs during trade disputes, amplifying risk to crop yields and livestock health. In 2024, Nebraska passed LB 1301, the Foreign-owned Real Estate National Security Act. The new law disallows the purchasing or leasing of Nebraska agricultural land or property near military installations from countries of China, Russia, Iran, North Korea, Cuba, and Venezuela. Furthermore, we have expanded our market with allied nations to diversify export channels and reduce single-market vulnerabilities.  




CVA Coop Hosts Winter Grain Meetings

Join the CVA Grain Team for a Customer Appreciation Meal and Market Outlook Discussion as we address some key questions for 2026 including:
- What are realistic price possibilities on old crop bushels? 
- How to incorporate government program/insurance payments into my marketing plan
- Key themes to watch in 2026 and 2027

Meeting Dates
January 7 | 5:00 pm | Elgin, NE
January 14  | 10:30 am | St. Edward, NE
January 14 | 5:00 pm | Fullerton, NE
January 19 | 10:30 am | Seward, NE
January 20 | 10:30 am | Royal, NE
January 21 | 10:30 am | Oakland, NE
January 21 | 5:00 pm | Humphrey, NE
January 22  | 10:30 am | Daykin, NE 
February 4 | 5:00 pm | Laurel, NE 
February 9 | 10:30 am | Benedict, NE 
February 9 | 5:00 pm | Shelby, NE 
February 11 | 10:30 am | Randolph, NE 

More details and register here: https://www.cvacoop.com/wgm.  



Proposed WOTUS Rule Brings Certainty to Farmers

Farmers need rules that clearly define federal jurisdiction of Waters of the United States (WOTUS). The American Farm Bureau Federation today submitted comments to the Environmental Protection Agency (EPA) and the Army Corps of Engineers, detailing the impact WOTUS has on farmers and elements that must be included in the new proposed rule to ensure it can withstand future legal challenges.

“Farmers and ranchers support the creation of a legally durable rule that injects clarity into the regulatory process and does not leave landowners guessing what parts of their property are subject to regulation,” wrote John Newton, vice president of public policy and economic analysis.

The proposed rule implements Supreme Court rulings that narrowed the scope of federal Clean Water Act jurisdiction by creating definitions for important terms such as “relatively permanent” and “continuous surface connection,” which determine what should be considered a WOTUS.

Among Farm Bureau’s recommendations are:
    Further defining “relatively permanent” to narrow the regulatory scope;
    Clarifying when wetlands should fall under WOTUS;
    Continued exclusion of prior converted cropland; and
    Exclusion of ditches from WOTUS jurisdiction.

“Ever-changing rulemakings that redefine the scope of the CWA have created decades of regulatory uncertainty. We have seen WOTUS definitions change with each administration, guidance documents offered and then rescinded, and confusing litigation that have provided more questions than answers. Landowners, small businesses and American families are the ones who suffer the most. This administration has an opportunity to produce a durable rule that injects clarity and certainty into the definition of WOTUS.”



NPPC Welcomes Back O'Connor as Director of Federal Affairs
 
Molly O'Connor rejoins the National Pork Producers Council as director of federal affairs in the Washington, D.C., public policy office.

"NPPC is pleased to have Molly O'Connor join the government affairs team. Molly brings a strong record of legislative advocacy, staff leadership, and coalition management across Capitol Hill and multiple administrations," said NPPC Vice President of Government Affairs Maria C. Zieba. "I am confident Molly will hit the ground running and be a strong advocate and asset for America's pork producers."

O'Connor began her career with NPPC as an international trade intern in 2011 and now returns to the organization, bringing more than a decade of experience in federal government relations and food and agriculture policy. 

Most recently, O'Connor served as director of federal government relations at CropLife America, where she led federal advocacy strategy and represented the U.S. pesticide industry. Her policy portfolio included the farm bill, regulatory reform, supply chains, and international trade. 

O'Connor also served as senior policy advisor at OFW Law, directing federal lobbying efforts for commodity and food clients on issues relevant to NPPC.



Cow-Calf Costs and Returns Update
Will Secor, Ph.D.
Extension Livestock Economist
University of Georgia

Between late-November and mid-December, the USDA was releasing a flurry of data after the government shutdown this fall. Many important reports received most of the headlines (e.g., Cattle on Feed). However, the USDA also updated its Commodity Cost of Production and Return information.

The USDA estimates that cow-calf operations brought in $1,130 per cow in revenue and incurred $691 in operating expenses in 2024. This revenue figure includes sales of calves, stockers, and cull cattle. Operating costs include expenses for feed, purchased cattle for backgrounding, veterinary services, fuel, equipment repairs, and interest on borrowed funds. The difference between these provides a net return (above operating costs) of around $439 per cow in 2024. This would be the highest nominal figure since their data begins in the mid-90s. Adjusted for inflation, this would be around $70 per cow below the high of 2014 and around $17 per cow below 2015’s estimates.

These estimates vary widely across the U.S. In 2024, the USDA estimates that the Northern Great Plains received the highest revenue per cow at $1,392, followed by the Eastern Uplands ($1,221 per cow) and Basin and Range regions ($1,130 per cow). The lowest revenue region was the Fruitful Rim ($936 per cow). The regions with the lowest operating costs per cow were the Fruitful Rim ($384 per cow), Southern Seaboard ($527 per cow), and Mississippi Portal ($587 per cow). The region that was estimated to have the highest operating expenses was the Northern Great Plains at $952 per cow.

According to the USDA, the Fruitful Rim region saw the highest returns at a little over $550 per cow, while the Prairie Gateway area of the U.S. is estimated to have the smallest returns at around $335 per cow in 2024. These differences in returns reflect differences in revenue and operating costs, but operating costs appear to dominate differences in revenue. For example, the Fruitful Rim region is estimated to have had the smallest revenue in 2024 but also the smallest operating expenses.

2025 was another strong year for cow-calf producers across the U.S. It is likely that the final figures for last year will show returns exceeded those of 2024 and may have surpassed those in 2014 and 2015. Given the supply outlook for the year ahead, 2026 will likely be another strong margin year for producers. However, there are risks: continued market volatility from this fall and winter, policy uncertainty, reduced processor capacity, and risks of high-priced beef reducing quantity demand. Exactly how strong 2026 will be is still yet to be determined.

Monday January 05 Ag News - I-29 MooU Markets and Policy Webinar - Farmer Bridge payment details announced - Corn, Soybean Crush Data for Nov'25 - and more!

I-29 Moo University Webinar... Dairy Markets and Policy Update: Interpreting Mixed Price Signals

The 2026 I-29 Moo University Dairy Webinar Series kicks off on Monday, January 12 from 12 noon to 1 p.m. CST, focusing on milk markets with Dr. Leonard Polzin.

This webinar provides an update on U.S. dairy markets and recent Federal Milk Marketing Order reforms, with a focus on how current market and policy dynamics are affecting milk prices and producer revenues. The discussion examines the ongoing downturn in dairy prices by analyzing key supply, demand, and trade factors, explaining why prices have declined, why the downturn has emerged at this point in the cycle, and how competing market signals are creating mixed price indications.

Leonard Polzin grew up on a century-old Wisconsin dairy farm and received bachelor’s Degrees in Dairy Science and Agricultural Business from UW River Falls. He completed his graduate work in Agriculture and Resource Economics from Michigan State University. He brings extensive experience as an educator and analyst to the position, having developed and provided programing on topics including market analysis, outlook and market expectations, risk management, and policy analysis.

There is no fee to participate in the webinar; however, registration is required at least one hour prior to the webinar. Register online at: https://go.iastate.edu/25NNVN.

For more information, contact: in Iowa, Fred M. Hall, 712-737-4230; in Minnesota, Jim Salfer, 320-203-6093; in Nebraska, Kortney Harpestad, 402-472-3571; or in South Dakota, Maristela Rovai, 605-688-5488.



USDA Announces Commodity Payment Rates for Farmer Bridge Assistance Program

Last week, U.S. Secretary of Agriculture Brooke L. Rollins announced the next phase in the Farmer Bridge Assistance Program (FBA), the eligible commodity per-acre payment rates. As announced earlier this month by President Trump and Secretary Rollins, $12 billion will be paid to American farmers in 2026. Of that amount, $11 billion consists of one-time FBA program payments. This is in response to four years of disastrous Biden administration policies that created record-high input and production costs, zero new trade deals, and a forgotten rural America.

“President Trump committed to increase certainty in the farm economy, and farmers can count on these payment rate calculations when going to the bank as they plan for the spring planting season. Putting Farmers First means delivering real relief when it matters. Farmers who qualify for the FBA Program can expect payments in their bank accounts by February 28, 2026,” said Secretary Brooke Rollins. “These one-time payments give farmers the bridge to continue to feed and clothe America and the world while the Trump Administration continues opening new markets and strengthening the farm safety net.  USDA is making this process as simple and seamless as possible so producers can focus on what they do best – feeding and fueling our nation.”

Eligible Row Crop Commodities and Payment Rates: 
Below are the payment rates for the FBA eligible commodities that triggered a payment.  

Commodity, Per Acre Payment Rates
• Barley: $20.51
• Canola: $23.57
• Chickpeas (Large): $26.46
• Chickpeas (Small): $33.36
• Corn: $44.36
• Cotton: $117.35
• Flax: $8.05
• Lentils: $23.98
• Mustard: $23.21
• Oats: $81.75
• Peanuts: $55.65
• Peas: $19.60
• Rice: $132.89
• Safflower: $24.86
• Sesame: $13.68
• Sorghum: $48.11
• Soybeans: $30.88
• Sunflower: $17.32
• Wheat: $39.35

Eligibility, Program Applications, and Crop Insurance Linkage 
FBA payments are based on 2025 planted acres, Economic Research Service cost of production, and the World Agriculture Supply and Demand Estimate Report. Double crop acres, including all initial and subsequently planted crops, are eligible. Prevent plant acres are not eligible. 

All intended row crop uses are eligible for FBA except grazing, volunteer stands, experimental, green manure, crops left standing and abandoned or cover crops. 

Crop insurance linkage is not required; however, USDA strongly urges producers to take advantage of the new risk management tools provided for in the One Big Beautiful Bill Act (OBBBA) to best protect against future price risk and volatility. The OBBBA federal crop insurance improvements include expanding benefits for beginning farmers and ranchers, increasing coverage options, and making crop insurance more affordable. 

Specialty Crop Assistance 
Of the $12 billion being provided by the Commodity Credit Corporation Charter Act, up to $11 billion is being directed to eligible row crop producers and the remaining $1 billion of the $12 billion in assistance is reserved for specialty crops and sugar. Timelines for payments to producers of these crops are still under development and require additional understanding of market impacts and economic needs. Producers, including specialty crop producers and stakeholder groups, can submit questions to farmerbridge@usda.gov. 

More Information 
More information FBA is available online at https://www.fsa.usda.gov/fba or you can contact your local USDA FSA county office. 



ASA: USDA Farmer Bridge Assistance Payments Fall Short for Soybean Farmers

The American Soybean Association responded to the U.S. Department of Agriculture’s release of additional details regarding the Farmer Bridge Assistance program. The commodity-specific payment rates for the program will include $30.88/acre for soybeans, which will not cover the significant financial damage soybean farmers sustained this year due to the high cost of production and losses sustained during the China trade war.

ASA appreciates the administration’s focus on the economic downturn in the U.S. agricultural industry. The per-acre financial support for soybean farmers, however, will not be enough to ensure their operations can survive through the next growing season. The FBA program is a critical first step in making soybean farmers whole, but additional actions, including finalizing biofuels policies to bolster domestic markets for U.S. soy, are urgently needed.

“ASA is grateful to the Trump administration and USDA for recognizing the economic losses farmers are experiencing, but due to significant trade losses this year, the payment rate for soybeans will likely not be enough for soybean farmers to keep their operations financially solvent as we move into the next planting season,” said ASA President and Ohio farmer Scott Metzger. “While the assistance provides some relief, farmers need strong, reliable markets to guarantee the long-term success of the U.S. soybean industry. We urge the Trump administration to focus on immediate, achievable actions which will support domestic soybean markets, including finalizing policies that create a preference for soy-based biofuel feedstocks through the 2026-2027 Renewable Volume Obligations, robust biomass-based diesel volumes, and 45Z Clean Fuel Production Credit tax guidance. Reliable markets depend on policies that grow demand, strengthen rural economies, and provide certainty for the next generation."

ASA urges the administration to deliver long-term demand solutions by finalizing strong biofuels policy. Finalizing EPA’s biofuel blending requirements as proposed, including the RIN credit discount for imported biofuel feedstocks that undercut domestic soybean demand, would prioritize American-grown feedstocks, support domestic energy production, and strengthen demand for U.S. soybean oil. Further, the swift finalization of 45Z tax guidance to ensure the positive changes created through One Big Beautiful Bill Act can be realized, is imperative to support biofuel industry investments. Putting these policies in place now will help ensure today’s assistance is paired with lasting market opportunity for soybean farmers and rural communities. 



Corn Growers Comment on Bridge Assistance Rates

USDA released further details today on the commodity-by-commodity national payment rates for the Farmer Bridge Assistance Program, allocating $44.36 per corn acre to growers across the country. By comparison, under the previous Emergency Commodity Assistance Program, as authorized by Congress, corn had a payment rate of $42.91 per acre. Farmers who qualify for the bridge assistance can expect payments to be made by the end of February 2026.

In response to this development, National Corn Growers Association President Jed Bower released the following statement: 
 
“We are appreciative of Secretary Rollins and the USDA for creating the Farmer Bridge Assistance Program, which begins to assist growers facing economic pain and hardships.  
 
“Corn growers have been sounding the alarm about the fact that farmers have been faced with multiple consecutive years of low corn prices and high input costs. 

“While this financial assistance is helpful and welcomed, we urgently need the administration and Congress to develop markets in the United States and abroad that will provide growers with more long-term economic certainty.” 

NCGA will continue working with USDA as the Farm Service Agency begins the implementation stage of the new Farmer Bridge Assistance Program to ensure the assistance is timely and effective for producers.  



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 519 million bushels in November 2025. Total corn consumption was down 1 percent from October 2025 and down less than 1 percent from November 2024. November 2025 usage included 93.0 percent for alcohol and 7.0 percent for other purposes. Corn consumed for beverage alcohol totaled 3.45 million bushels, down 2 percent from October 2025 and down 11 percent from November 2024. Corn for fuel alcohol, at 472 million bushels, was down 1 percent from October 2025 but up slightly from November 2024. Corn consumed in November 2025 for dry milling fuel production and wet milling fuel production was 92.0 percent and 8.0 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.75 million tons during November 2025, down 9 percent from October 2025 and down 5 percent from November 2024. Distillers wet grains (DWG) 65 percent or more moisture was 1.26 million tons in November 2025, up 2 percent from October 2025 and up 1 percent from November 2024.

Wet mill corn gluten feed production was 251,463 tons during November 2025, down slightly from October 2025 and down 3 percent from November 2024. Wet corn gluten feed 40 to 60 percent moisture was 186,284 tons in November 2025, down 2 percent from October 2025 and down 15 percent from November 2024.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 6.62 million tons (221 million bushels) in November 2025, compared with 7.09 million tons (236 million bushels) in October 2025 and 6.30 million tons (210 million bushels) in November 2024. Crude oil produced was 2.53 billion pounds, down 8 percent from October 2025 but up 2 percent from November 2024. Soybean once refined oil production at 1.74 billion pounds during November 2025 decreased 16 percent from October 2025 and decreased 4 percent from November 2024.


 

USDA Announces January 2026 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for January 2026, which are effective Jan. 1, 2026. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.       
       
Operating, Ownership and Emergency Loans       
FSA offers farm operating, ownership and emergency loans with favorable interest rates and terms to help eligible agricultural producers obtain financing needed to start, expand or maintain a family agricultural operation.      

Interest rates for Operating and Ownership loans for January 2026 are as follows:       
    Farm Operating Loans (Direct): 4.625%  
    Farm Ownership Loans (Direct): 5.625%  
    Farm Ownership Loans (Direct, Joint Financing): 3.625%  
    Farm Ownership Loans (Down Payment): 1.625% 
    Emergency Loan (Amount of Actual Loss): 3.750%    

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.        

Commodity and Storage Facility Loans      
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.   

Commodity Loans(less than one year disbursed): 4.625%       
     Farm Storage Facility Loans:  
        Three-year loan terms: 3.500%  
        Five-year loan terms: 3.625%  
        Seven-year loan terms: 3.875%  
        Ten-year loan terms: 4.125% 
        Twelve-year loan terms: 4.250%  
    Sugar Storage Facility Loans (15 years): 4.500%         

More Information
To learn more about FSA programs, producers can contact their local USDA Service Center. Additionally, producers can use online tools, such as the Loan Assistance Tool and Debt Consolidation Tool to explore loan options.