USDA is backing new fertilizer projects expected to add more than one million tons of annual domestic production capacity. Today’s update also covers improving Southern Plains forage prospects, record soybean oil biofuel use, Southwest cotton losses, stronger ethanol exports and high hay freight costs.
Listen to today’s Ag News Update:
Ag News Update – Friday 10/23/2026
USDA says eight fertilizer projects could add more than one million tons of annual domestic production capacity across 22 locations in 16 states. The projects represent more than $1.34 billion in proposed investment, with completion targeted for 2027 and 2028. A developing El Niño could bring more frequent precipitation to the Southern Plains, improving winter wheat pasture and forage conditions for cattle producers. U.S. soybean oil use for biofuel reached a record 1.687 billion pounds in July, topping the previous monthly record by 8.4%. Southwest cotton abandonment is projected at 34%, while regional yields fall to the lowest level since 2003/04. U.S. ethanol exports rose about 12% from January through June, helping support higher corn use for fuel alcohol. High freight and diesel costs are also complicating hay movement, especially where drought is forcing livestock producers to search farther for winter feed.
Today’s Ag News Highlights
– USDA fertilizer projects target more than one million tons of additional annual domestic capacity.
– El Niño could improve Southern Plains wheat pasture and forage conditions.
– Soybean oil biofuel use reached a record 1.687 billion pounds in July.
– Southwest cotton abandonment is projected at 34% as yields fall sharply.
– Ethanol exports are supporting corn demand while hay freight costs remain high.