Beef Month Perspective: What Lenders Are Seeing in Today’s Beef Industry
As the U.S. beef industry recognizes Beef Month this May, Farm Credit Services of America (FCSAmerica) joins in recognizing beef producers for their essential role in feeding families, strengthening rural communities, and sustaining a safe, reliable food supply for the nation. At the same time, producers are navigating one of the most financially pivotal moments the industry has experienced in decades, shaped by historically high cattle values, rising capital requirements, and increased exposure to market volatility.
While strong consumer demand and elevated prices have created meaningful opportunities across the beef sector, larger balance sheets and higher replacement costs are raising the stakes for operators, according to FCSAmerica. Day‑to‑day business decisions, financial planning and risk management are more critical than ever.
“The market the past few years has offered real opportunity, but it also leaves less room for error,” said Marshall Hansen, senior vice president with FCSAmerica’s corporate protein team. “It simply takes more capital to operate than it did in the past. And when markets shift, the financial impact can be significant.”
Bigger Numbers Bring Bigger Challenges
The beef lending experts at FCSAmerica note that unprecedented values on assets ranging from cattle and feed to land and equipment magnify risk across the entire operation. As costs and values rise together, even small market movements can have an outsized effect on cash flow and long‑term financial health.
“Producers aren’t just managing higher prices; they’re managing larger loan commitments,” Hansen said. “Operations that are thinking through multiple scenarios and staying disciplined in decision‑making tend to be better positioned when uncertainty shows up.”
Risk Management Becomes a Core Business Strategy
Risk management has become a foundational part of running a resilient beef operation - not a secondary tool used only in extreme market conditions. Landon Nelson, vice president of livestock insurance for FCSAmerica, said the focus is increasingly shifting from trying to time the market to protecting the overall strength of the business. “Successful operations are less concerned with catching the top of the market and more focused on maintaining consistency and durability,” Nelson said. “The goal is to protect the equity that has been built over time and keep the operation viable through both strong and challenging cycles.”
Nelson added that as margins tighten during periodic pullbacks, producers are evaluating more comprehensive approaches that address price risk alongside broader operational and financial exposure, particularly when planning for the year ahead. “RMA has continued to make incremental enhancements to LRP as they build on a steady evolution that has made the program more accessible and practical for producers,” he added. “The program now fits more naturally into day‑to‑day marketing and risk decisions. We focus on helping producers understand what’s available and how these tools can be used in their risk management strategy.”
Capital Management Will Shape the Next Beef Cycle
Fallon Savage, senior vice president of corporate credit for FCSAmerica, said the decisions beef producers make today will have lasting implications well beyond the current market cycle. “High cattle values can accelerate progress, but they also demand a higher level of discipline,” Savage said. “Producers who stay intentional with capital, maintain strong communication with their lender and prepare for swings in the market are better equipped to remain competitive long term.” Savage noted that lenders are spending more time helping producers evaluate capital investments, stress-test assumptions, and ensure growth decisions align with realistic expectations.
Beef Month: A Business Perspective
While Beef Month celebrates the people and products that drive the industry, FCSAmerica says it’s also an important moment to recognize the business fundamentals that support beef production - planning, risk management, and long‑term thinking. “The choices being made today will influence not only near‑term profitability, but the future of these operations for the next generation,” Savage said. “Strong partnerships and informed decision making play a critical role in sustaining the beef industry over time.”
METHANE-POWERED TRACTORS WILL BOLSTER AG RESEARCH AT NEBRASKA U
Faculty and students in the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources will have new agriculture research and education opportunities because of the gift of two New Holland methane-powered tractors.
CNH donated the tractors through the University of Nebraska Foundation. The New Holland T6.180 is the world’s first 100% methane-powered production tractor. Each tractor has a retail value of $287,240.
The gift was facilitated by Andy Dozler, manufacturing engineering manager of the CNH plant in Grand Island, Nebraska. Dozler, who earned a bachelor’s degree in mechanized systems management from Nebraska in 2004, serves on the Biological Systems Engineering advisory board. CNH’s manufacturing engineering department in Grand Island also employs 10 engineers who are Husker alumni.
“I was made aware of a unique opportunity that CNH was looking to donate several state-of-the-art methane-powered tractors to universities,” Dozler said. “The goal was to place this advanced equipment in the hands of students for real-world use, helping prepare the next generation of farmers and innovators while demonstrating the viability of alternative-powered machinery in everyday agricultural operations.”
The two tractors will be used at the university’s Eastern Nebraska Research, Extension and Education Center, a research and education facility near Mead.
The bright blue tractors are designed to minimize emissions while maximizing profitability and productivity on farms. Farms equipped with biodigesters can power the tractors by converting the operation’s plant waste and livestock manure into biomethane. The tractors can also operate on compressed natural gas, which is how they initially will be fueled at the university.
“ENREEC functions as both a working farm and a commercial-scale laboratory where faculty, staff, students, producers, partner organizations and members of the public can observe and test new and emerging technologies,” said Doug Zalesky, director of ENREEC. “This donation is an incredible addition to the slate of technologies here at ENREEC, and it highlights the strong partnership we’re grateful to share with CNH. We’re extremely thankful to CNH for the donation of these tractors, and we look forward to putting them to work.”
The tractors were made at a CNH plant in Basildon, England. CNH’s Grand Island plant, which recently celebrated 60 years of operation, employs more than 600 people. For over 125 years, New Holland has supported farmers with the technology, solutions and services they need for productive agriculture.
The gift was made as part of Only in Nebraska: A Campaign for Our University’s Future. The campaign is a historic effort to engage 150,000 benefactors to give $3 billion to support the University of Nebraska.
USDA Designates Nebraska Counties as Natural Disaster Areas Due to Drought
This Secretarial natural disaster designation allows the United States Department of Agriculture (USDA) Farm Service Agency (FSA) to extend much-needed emergency credit to producers recovering from natural disasters through emergency loans. Emergency loans can be used to meet various recovery needs including the replacement of essential items such as equipment or livestock, reorganization of a farming operation, or to refinance certain debts. FSA will review the loans based on the extent of losses, security available, and repayment ability.
According to the U.S. Drought Monitor, these counties suffered from a drought intensity value during the growing season of 1) D2 Drought-Severe for 8 or more consecutive weeks or 2) D3 Drought-Extreme or D4 Drought-Exceptional.
Triggering Disaster: Drought (Fast Track)
Impacted Area: Nebraska
Application Deadline: 12/15/2026
Primary Counties Eligible:
State: Nebraska: Counties include Adams, Antelope, Arthur, Banner, Boone, Box Butte, Boyd, Buffalo, Butler, Cedar, Chase, Cherry, Cheyenne, Clay, Colfax, Custer, Dawes, Dawson, Deuel, Dixon, Dundy, Frontier, Furnas, Garden, Garfield, Gosper, Grant, Greeley, Hall, Hamilton, Hayes, Hitchcock, Holt, Hooker, Howard, Kearney, Keith, Kimball, Knox, Lincoln, Loup, McPherson, Madison, Merrick, Morrill, Nance, Perkins, Phelps, Pierce, Platte, Polk, Red Willow, Scotts Bluff, Seward, Sheridan, Sherman, Sioux, Valley, Wayne, Wheeler, York.
Contiguous Counties Also Eligible:
State: Nebraska: Counties include Blaine, Brown, Cuming, Dakota, Dodge, Fillmore, Franklin, Harlan, Keya Paha, Lancaster, Logan, Nuckolls, Rock, Saline, Saunders, Stanton, Thomas, Thurston, Webster.
State: Colorado: Counties include Logan, Phillips, Sedgwick, Weld, Yuma.
State: Kansas: Counties include Cheyenne, Decatur, Norton, Rawlins.
State: South Dakota: Counties include Bennett, Bon Homme, Charles Mix, Clay, Fall River, Gregory, Oglala Lakota, Todd, Tripp, Union, Yankton.
State: Wyoming: Goshen, Laramie, Niobrara.
More Resources
On farmers.gov, the Disaster Assistance Discovery Tool, Disaster Assistance-at-a-Glance fact sheet, and Loan Assistance Tool can help you determine program or loan options. To file a Notice of Loss or to ask questions about available programs, contact your local USDA Service Center.
Soil Management and Land Valuation Conference Set for May 20
Farm managers, rural appraisers, real estate brokers and others interested in the Iowa land market can expect timely updates at this year’s Soil Management and Land Valuation Conference on May 20 in Ames.
Experts will examine current issues in rural property management, appraisal, the selling and buying of land and agricultural policy.
The annual conference – now in its 98th year – is the longest-running at Iowa State University in research and extension. The program is planned each year by the ISU Extension and Outreach Agricultural Economics team in the Department of Economics.
This year’s conference will be held at the Scheman Building, with check-in beginning at 7:30 a.m. and the conference running from 8 a.m. to 4:30 p.m.
Conference speakers and topics
This year’s conference examines several current issues in rural property management, appraisal, sale and purchase of land and agricultural policy to better understand land markets.
Rabail Chandio, conference chairperson, assistant professor and extension economist at ISU, will begin the day reviewing attendees’ land value forecasts, followed by a discussion on economic forces shaping agriculture from Steve Elmore, chief economist at Corteva. A brief session will focus on recent ISU work on AI in agriculture, presented by James Koltes, associate professor in the Department of Animal Science at ISU.
Pete Burmeister, relationship officer with Farm Credit Services of America, and Jeff Burges with Mediapolis Savings Bank, will share about financial stress and farming. Then, Dan Culhane from the Ames Regional Economic Alliance will present on the livestock sector and the new Daisy plant in Iowa.
After lunch, Keith Schilling, director of the Iowa Geological Survey, will present “Iowa’s Water Future: Aquifers, Supply, and Farm Implications.” Panel speakers on soil health, conservation, and farmland value will include Carolyn King, vice president with ContinuumAg, and Jeremy Hollingsworth, area soil health specialist with the USDA-Natural Resources Conservation Service.
Kristine Tidgren, director for the Center for Agricultural Law and Taxation at ISU, will provide legal updates affecting land purchases and sales. Closing the event is Chad Hart, professor and extension economist at ISU, with a crop markets outlook.
Chandio said the conference will continue to educate those in the Iowa land market, enabling them to make more informed decisions.
“Today’s agricultural economy is being squeezed by tightening margins and limited working capital, creating real financial stress. At the same time, longer-term forces, especially the rise of AI and emerging sector-specific opportunities in animal agriculture, are reshaping the horizon,” she said. “These pressures and possibilities affect everyone across the ag economy. Whether you’re managing land, buying and selling it or evaluating its value, there’s a lot to gain from hearing directly from experts who are tracking these issues every day.”
The cost to register for the conference is $150; registration is required to attend.
Participants are also eligible to receive seven hours of continuing education credit for real estate and appraisal licenses upon conclusion of the program.
For more information and a full agenda, visit Soil Management and Land Valuation Conference https://smlv.card.iastate.edu/, or contact Rabail Chandio at rchandio@iastate.edu or Nathan Cook at nmcook@iastate.edu.
Iowa Farm Environmental Leader Award Nomination Deadline Extended to May 22
The Iowa Department of Agriculture and Land Stewardship has extended the deadline for nominations for the 2026 Iowa Farm Environmental Leader Award. The deadline to nominate a farmer or farm family is now Friday, May 22.
The Iowa Farm Environmental Leader Award recognizes farm families who demonstrate outstanding voluntary efforts to improve and protect Iowa’s soil and water resources while also serving as leaders in their community. Each year, farm families from across the state are honored for leadership in implementing conservation practices such as cover crops, no-till and reduced tillage, nutrient management, grassed waterways, wetlands, saturated buffers, bioreactors and many other innovative water quality practices that filter the water and hold soil in place.
Nominations may be submitted by farmers, landowners, conservation professionals, commodity groups, or members of the public. The nomination form can be found on the Iowa Department of Agriculture and Land Stewardship’s website https://iowaagriculture.gov/farm-environmental-leader-awards. An appointed committee representing conservation and agricultural groups will review the nominations and select the winners.
Families selected for this year’s honor will be recognized during a ceremony at the 2026 Iowa State Fair as part of Iowa’s America250 celebration, commemorating American independence and highlighting agriculture’s enduring role in our nation’s strength and prosperity. This year’s recipients will also receive a special America250 seal on their certificate and have their photos taken in front of an America250 backdrop.
To learn more, access the nomination form, and see a list of previous awardees, visit the award website https://iowaagriculture.gov/farm-environmental-leader-awards.
DAIRY PRIDE Act Reintroduced in House
The National Milk Producers Federation partnered with congressional allies Reps. John Joyce, R-PA, and Josh Riley, D-NY, to reintroduce the bipartisan DAIRY PRIDE Act in the House of Representatives April 21, an important step in the ongoing efforts to ensure truth in labeling for milk and dairy products.
The legislation is a companion to the bipartisan Senate bill introduced in July 2025.
“Dairy farmers have spent generations building trust in the nutritional value and quality of real dairy products; allowing imitation products to borrow that reputation risks misleading shoppers and muddying the marketplace,” NMPF President & CEO Gregg Doud said.
The Food and Drug Administration for nearly five decades has failed to enforce its own standards of identity for dairy foods, allowing plant-based imitation products to use dairy terms like “milk,” “cheese,” and “yogurt” despite being nutritionally inferior. These standards exist to promote honesty, protect consumers, and ensure that product names carry clear expectations for nutritional value. Milk and dairy foods provide a unique package of 13 essential nutrients, including calcium, potassium, and vitamin D — nutrients of public health concern that many Americans already under-consume.
DAIRY PRIDE would direct FDA to finally uphold these longstanding standards by deeming imitation products with inaccurate milk claims as misbranded. The bill also requires FDA to issue guidance within 90 days to ensure consistent, nationwide enforcement, helping consumers better understand their choices at the grocery store and restoring fairness for dairy farmers who play by the rules.
NMPF strongly supports the DAIRY PRIDE Act and thanks Reps. Joyce and Riley for their bipartisan leadership. The organization will continue engaging Congress and the Administration to push for meaningful action that protects dairy’s identity, supports public health, and ensures a level playing field for America’s dairy farm families.
USDA Risk Management Agency Upgrades Rainfall Data Source
The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) is upgrading the source for rainfall data used in several Federal crop insurance programs, moving from the National Oceanic and Atmospheric Administration’s Climate Prediction Center (CPC) to the National Centers for Environmental Information (NCEI). RMA will begin this transition with the Tropical Storm Option on the Hurricane Insurance Protection - Wind Index program on April 30, 2026.
This change will also affect Pasture, Rangeland, Forage (PRF); Annual Forage (AF); Apiculture; and Shellfish insurance programs that use precipitation data to calculate coverage and indemnities. PRF, Apiculture, and Shellfish will transition on August 31, 2026, with AF following on April 30, 2027. RMA will release corresponding producer tools and resources at each contract change date to help explain the new dataset. Producers should work with their crop insurance agent to review impacts on their coverage.
“These upgrades are about giving producers and their agents better tools to understand and trust the data behind their coverage,” said RMA Administrator Pat Swanson. “The coverage areas, the way these programs work and our commitment to actuarial soundness are not changing. What is changing is that producers and agents will now be able to look up the rainfall data themselves in a format they can use.”
The geographic grids used to measure rainfall and overall structure of the programs will remain the same. Keeping the grids in place helps minimize impacts to producers. With this upgrade, RMA anticipates that final grid index values and indemnity payments will be delivered faster. Historical data shows that overall loss ratios remain nearly identical under the new data source.
Producers and agents have raised concerns about the current data source. The transition to using NCEI data addresses those concerns in three key ways:
It’s easy to access. NCEI data is available in formats like Microsoft Excel that anyone can open and read. The current CPC data is in a technical format that requires special software to view.
Potential for data enhancements. RMA is working with NCEI and state climatologists to review options on expanding the number of weather stations used in the data over time which was previously not an option with CPC.
It comes with better support. RMA has a formal agreement with NCEI that includes dedicated staff to respond to RMA questions, a consistent data release schedule, and a pathway to add more weather stations over time. This supports faster, more predictable indemnity payments.
More Information
RMA secures the future of agriculture by providing world class risk management tools to rural America through Federal crop insurance and risk management education programs. RMA provides policies for more than 130 crops and is constantly working to adjust and create new policies based on producer needs and feedback.
ASA Vice President Urges Caution in USTR Section 301 Investigation
Soybean farmers are already facing significant economic headwinds and new trade actions could add further strain, American Soybean Association (ASA) Vice President and Iowa soybean farmer Dave Walton said today in testimony before the Office of the United States Trade Representative (USTR).
“Soybeans are the largest ag export in the U.S., and robust trade is a top priority for our industry,” Walton emphasized, noting that in the 2024–2025 marketing year, the U.S. exported 68.7 million metric tons of soybeans, soybean meal, and soybean oil, valued at $29.6 billion and accounting for 58% of total U.S. soy production.
Walton highlighted real-world impacts of past trade disputes, including a 76% drop in the value of U.S. soybean exports to China during the 2018 trade conflict.
“We are concerned this investigation could lead to remedies that will set back ongoing negotiations and lead the reimposition of even higher tariffs against U.S. soybeans by China,” Walton said.
Farmers are also facing mounting financial pressure, as soybean producers are expected to incur a $117 per acre market loss this year while continuing to manage elevated input costs tied to global supply chains.
Building on those concerns, Walton added, “As USTR moves forward with this investigation, it is the recommendation of ASA that USTR and the administration keep in mind two major recommendations.”
He urged USTR to pursue targeted remedies, including exemptions for critical agricultural inputs, and to avoid actions that could disrupt key trading relationships by exempting Mexico and Canada from any future Section 301 remedies.
ASA submitted joint written comments alongside the U.S. Soybean Export Council (USSEC) and will continue engaging with the administration on trade policies impacting U.S. soybean farmers.
March U.S. Ethanol and DDGS Exports Strengthen
Ann Lewis, Renewable Fuels Association
U.S. ethanol exports in March rose 4% to 217.8 million gallons (mg). Canada and the European Union accounted for roughly 6 out of every 10 gallons shipped, with the remainder distributed across an additional 11 markets. Shipments to Canada increased 23% to 75.1 mg, reinforcing its position as the leading destination for denatured fuel ethanol. Meanwhile, exports to the European Union climbed 18% to a six-year high of 58.8 mg, led by strong demand from the Netherlands, and continued to anchor the market for undenatured ethanol. Elsewhere, exports to the Philippines surged 157% to a two-year high of 15.2 mg, while shipments to Colombia rose 34% to 13.4 mg and South Korea increased 52% to 10.5 mg. Other larger destinations included Brazil (10.1 mg, -61%), Jamaica (8.3 mg, +374%), Peru (7.7 mg, +33%), India (6.8 mg, -75%), and Mexico (5.8 mg, -11%). Year-to-date U.S. ethanol exports reached 639.8 mg, running 20% ahead of the same period last year.
U.S. ethanol imports remained negligible in March, with just 5,511 gallons arriving from Canada. Total imports for the first quarter of 2026 reached 203,227 gallons.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, expanded 12% in March to a five-month high of 1.03 million metric tons (mt). Shipments to Mexico recovered, rising 22% to 213,575 mt, while exports to Indonesia jumped 61% to 163,702 mt. Exports to South Korea edged 7% lower to 114,345 mt, while shipments to Vietnam increased 44% to 101,428 mt. Colombia imports declined 15% to 71,515 mt. Collectively, these five markets accounted for about two-thirds of total DDGS exports, with the remainder spread across 26 additional destinations. For the first three months of the year, DDGS exports totaled 2.96 million mt, up 10% from the same period in 2025.
Farmer sentiment declines in April amid input costs and availability concerns
Farmer sentiment fell in April as concerns about rising input costs, tighter availability and global instability continued to weigh on the agricultural outlook. The April Purdue University/CME Group Ag Economy Barometer dropped to 121, down from 127 in March. The decline was also driven by a decrease in confidence about current conditions, which dropped by 11 points, while producers’ expectations for the future fell 4 points from the March survey and were 28 points below last year’s April index. The survey was conducted among 400 farmers across the nation from April 13-17.
Only 15% of producers indicated that financial conditions improved in April compared to the same period last year. When looking at the year ahead, 28% of respondents cited expectations of worse financial performance, compared with 25% expecting better financial performance. The Farm Capital Investment Index also fell by 9 points to 44, its lowest level since October 2024, indicating a decline in willingness to make large investments.
April’s survey also examined the impact of current events on farm income and corn break-even prices in 2026. Approximately two-thirds of respondents expect to reduce their farm’s net income in 2026. Among producers who planted corn in 2025, about half expect corn break-even prices to increase by up to 6% in 2026, 14% expect increases of 6% to 9%, and 37% anticipate increases of 10% or more.
“Producers are still under pressure from high input costs, and this month we observed a slight rise in concerns about fertilizer availability,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “Simultaneously, the impact of current events on fertilizer and energy markets increases global uncertainty, adding to the existing difficulties farmers face as they plan for the future.”
The monthly survey occasionally asks about a farm’s competitive standing and its capacity to manage strategic risks. This month’s survey included a question on farm competitiveness and cost structure. Approximately 58% of respondents agreed that their operations have lower per-unit fixed costs than their most efficient peers, including 9% who strongly agreed.
Farmland value expectations weakened in April, with the Short-Term Farmland Value Expectations Index declining from 125 to 121 and the Long-Term Farmland Value Expectations Index declining from 159 to 155. Producers identified alternative investments, interest rates and inflation as the primary factors influencing farmland values. Optimism about the direction of the U.S. economy also declined, with 57% of producers indicating the country is headed in the “right direction,” down from 65% in March.
Tractor tragedy highlights need for rollover protection on older farm equipment
A new article detailing the tragic death of 14‑year‑old Taylor VanderWeele underscores the urgent need for increased adoption and funding of rollover protective structures (ROPS) on older farm tractors.
The article, part of the Telling the Story Project, recounts the VanderWeele family’s experience following a fatal tractor rollover on June 24, 2009, when Taylor was hauling chopped hay in Sheboygan County, Wis. The tractor Taylor operated, a 1965 John Deere Model 4020, was not equipped with a ROPS, a safety feature that did not become standard on U.S. tractors until 1985.
The article emphasizes that safety training alone is not enough. Taylor had completed the Wisconsin Tractor Safety Course and was described by those who knew him as conscientious and careful. His death illustrates that even skilled, trained operators are vulnerable when essential safety equipment is missing.
A ROPS would almost certainly have saved Taylor’s life.
“We’re sharing Taylor’s story to give it a purpose, to prevent other rollovers and injury events,” said Cindy VanderWeele, Taylor’s mom.
The tractor is the most common and essential vehicle on American farms, and also the most dangerous. Tractor incidents are the leading cause of traumatic death to farmers, according to the National Institute for Occupational Safety and Health (NIOSH). Rollovers account for the majority of those fatalities. An estimated 100 tractor rollover fatalities occur per year. Due to underreporting, the true number is likely higher.
When combined with a seatbelt, ROPS systems are 99 percent effective at preventing serious injury or death in the event of a rollover. Despite this, an estimated half of all tractors in use nationwide lack this life‑saving protection.
Retrofitting an older tractor with ROPS can cost between $1,500 and $2,500, a significant expense for farm operations that often rely on multiple aging machines. While programs such as the National ROPS Rebate Program have helped offset these costs, funding is limited and availability varies by state.
Cindy and Jay VanderWeele, Taylor’s parents, are sharing their son’s story to advocate for renewed and expanded investment in agricultural injury prevention.
“We’re asking state legislatures to support and prioritize adequate funding for ROPS rebate programs so that other parents, siblings, spouses and farm owners do not have to live our experience,” Cindy said. “This is a simple, proven prevention effort that can eliminate the leading cause of death for agricultural workers.”
Taylor’s Story is part of the Telling the Story Project website, a collaboration of three agricultural safety centers funded by NIOSH. The project’s stories weave injury prevention messages into first-hand accounts of farmers and others impacted by agricultural trauma incidents.
Participating centers include: Central States Center for Agricultural Safety and Health (Nebraska); National Children’s Center for Rural and Agricultural Health and Safety; and the Upper Midwest Agricultural Safety and Health Center (Minnesota).
Wednesday, May 6, 2026
Wednesday May 06 Ag News - Perspectives on Beef Month - Methane Powered Tractors Donated to UNL - ISU Soil Management Conference May 20 - Dairy PRIDE Act Introduced - RMA Updates Rainfall Data Source - and more!
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