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.
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