Authors: Joe Outlaw and Bart Fischer 



The Senate Committee on Agriculture, Nutrition and Forestry released its discussion draft of the Agricultural Act of 2026 on June 23rd&nbsp;with the expectation to advance the legislation after the summer recess.&nbsp;&nbsp;The House of Representatives has passed their version of the farm bill and await the Senate passing their version so that differences can be worked out in conference.&nbsp;&nbsp;Prior to passage of the One Big Beautiful Bill Act (OBBBA) last summer, there had been a lot of discussion regarding the need for—and the impacts of—ad hoc assistance that had been provided to farmers due to the inadequacies of the current farm bill programs.&nbsp;&nbsp;We have discussed these issues&nbsp;<a href="https://southernagtoday.org/2024/12/05/its-time-for-the-panic-button/">here,</a>&nbsp;<a href="https://southernagtoday.org/2025/06/19/dealing-with-uncertainty-in-agriculture/">here</a>&nbsp;and&nbsp;<a href="https://southernagtoday.org/2026/06/17/surviving-the-farm-economy-downturn-2026-update/">here</a>.&nbsp;&nbsp;The hope had been that, as we move forward, the improvements in OBBBA would reduce the need for ad hoc assistance, with the changes to Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) providing a meaningful safety net for producers when needed.



So, what’s the problem?&nbsp;&nbsp;Quite simply, even though OBBBA raised producer payment limits to $160,000 per person or legal entity per year from $125,000, when times are bad, it simply is not enough assistance to be a viable safety net for a commercial sized farm.&nbsp;&nbsp;Lest anyone gets hung up on the use of the term “commercial,” here we use it to describe a family farm that attempts to make their living primarily from farming.



Every major agricultural group in this country has advocated for additional ad hoc economic and physical loss assistance that has come in the form of the Emergency Commodity Assistance Program (ECAP), the Farmer Bridge Assistance (FBA) program, and the Supplemental Disaster Relief Program (SDRP).&nbsp;&nbsp;The ECAP payment limitation was $125,000 per person or legal entity (doubled to $250,000 if at least 75% of your average gross income comes from farming, ranching, or forestry).&nbsp;&nbsp;The payment limit for the FBA program was $155,000 per person or legal entity.&nbsp;&nbsp;The Supplemental Disaster Relief Program (SDRP) has provided physical loss assistance to producers for the 2023 and 2024 crop years, thus far.&nbsp;&nbsp;There is a $125,000 producer payment limit per program year (doubled to $250,000 if at least 75% of your average adjusted gross income comes from farming, ranching, or forestry).



While covering different types of losses over the past three years, $37.09 billion has been provided to producers, with each program having its own payment limitation.&nbsp;&nbsp;While we can extol the virtues of ending ad hoc assistance—ranging from the fact that it is uncertain and delivered long after the losses occur to the fact that it is likely contributing to the stickiness of input costs—there is virtually no way that farm bill programs (i.e., ARC and PLC) could replace that kind of assistance, in part because of the $160,000 payment limitation per person or legal entity. If the payment limits are not further addressed to reflect economic realities, then demands for ad hoc assistance will continue in the near term and Congress will have gone to a lot of trouble make the safety net programs more meaningful to producers only to see payment limits render them less effective.



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Recommended citation format: Outlaw, Joe, and Bart L. Fischer. &#8220;<a href="https://southernagtoday.org/2026/06/25/the-next-farm-bill-needs-to-address-economic-realities/">The Next Farm Bill Needs to Address Economic Realities</a>.&#8221; Southern Ag Today 6(28.4). July 9, 2026. <a href="https://southernagtoday.org/2026/06/25/the-next-farm-bill-needs-to-address-economic-realities/">Permalink</a>

The Next Farm Bill Needs to Address Economic Realities

The United States planted an estimated 1.53 million acres of peanuts in 2026, according to the U.S. Department of Agriculture’s (USDA)&nbsp;Acreage&nbsp;report released on June 30th. This marks a 22% decrease compared to what was planted in 2025 and a 146,000 acre decrease compared to what was forecast in the March&nbsp;Prospective Plantings&nbsp;report. A higher relative price for competing row crops, such as cotton, is one factor that may have decreased peanut acres this year. December cotton futures prices increased from below 70 cents per lb. in early March to above 85 cents per lb. in mid-May as the peak southern crop planting season progressed.



All major peanut-growing states’ 2026 planted peanut areas are equal to or less than what they were in 2025, as shown in Figure 1. Texas had the largest drop, amounting to 105,000 fewer peanut acres, or a 37% reduction. Georgia, the largest producing peanut state, had a decrease of 70,000 acres (22%), for a total of 720,000 acres planted. Oklahoma was the only state that did not decrease peanut area planted, with its 19,000 acres being identical to last year’s value.



Figure 1: 2026 Planted Peanut Acres by State and Percent Change from 2025



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1402" height="699" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.3.png" alt="" class="wp-image-44358" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.3.png 1402w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.3-1024x511.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.3-768x383.png 768w" sizes="auto, (max-width: 1402px) 100vw, 1402px" /><figcaption class="wp-element-caption">Data source: USDA-NASS. Acreage. 2026.</figcaption></figure>



The decrease in peanut acres this year could have a major effect on peanut production and prices. Peanut ending stocks are expected to increase by 81% to 1.41 million tons at the end of the 2025/26 marketing year, due to the 3.59 million ton record-high 2025 peanut crop. If 95% of planted peanut acres are harvested this year and the yield remains near the 3-year average of 3,750 lb. per acre, this would put production at 2.87 million tons, a 20% decrease from last year’s total. This would also represent a 5% decline from what was forecast to be produced based on the area estimated in the March report. Lower production this year could help bring peanut stocks back down and provide a boost to peanut prices, which dropped by 11% to an average of $466 per ton for the 2025/26 marketing year, as reported in the June 2026 USDA&nbsp;Oil Crops Outlook. The USDA is expected to release updated peanut stock estimates in the 2026&nbsp;Oil Crops Outlook&nbsp;on July 14.&nbsp;



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References



Rabinowitz, Adam. “June Acreage Report Shows Larger Acreage Decline for Peanuts and Rice.” Southern Ag Today 6(27.3). July 1, 2026. Available at:&nbsp;<a href="https://southernagtoday.org/2026/07/01/june-acreage-report-shows-larger-acreage-decline-for-peanuts-and-rice/">https://southernagtoday.org/2026/07/01/june-acreage-report-shows-larger-acreage-decline-for-peanuts-and-rice/</a>



USDA-ERS.&nbsp;Oil Crops Outlook. June 15, 2026. Available at:&nbsp;<a href="https://usda.library.cornell.edu/concern/publications/j098zb08p">https://usda.library.cornell.edu/concern/publications/j098zb08p</a>



USDA-NASS.&nbsp;Acreage.&nbsp;June 30, 2026. Available at:&nbsp;<a href="https://usda.library.cornell.edu/concern/publications/j098zb09z">https://usda.library.cornell.edu/concern/publications/j098zb09z</a>



USDA-NASS.&nbsp;Crop Production Annual Summary.&nbsp;January 12, 2026. Available at:&nbsp;<a href="https://usda.library.cornell.edu/concern/publications/k3569432s">https://usda.library.cornell.edu/concern/publications/k3569432s</a>



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Recommended citation format: Sawadgo, Wendiam. &#8220;<a href="https://southernagtoday.org/2026/06/25/what-do-decreased-planted-peanut-acres-mean-for-production-in-2026/">What do Decreased Planted Peanut Acres Mean for Production in 2026?</a>&#8221; Southern Ag Today 6(28.3). July 8, 2026. <a href="https://southernagtoday.org/2026/06/25/what-do-decreased-planted-peanut-acres-mean-for-production-in-2026/">Permalink</a>

What do Decreased Planted Peanut Acres Mean for Production in 2026?

Milk production has been booming, with May marking the 15th&nbsp;consecutive month with year-over-year increases in production.&nbsp;&nbsp;February 2025 was the last month with a decline in milk production compared to the same month in the prior year.&nbsp;&nbsp;Milk production totaled 20.565 billion pounds in May, up 2.3 percent compared to last May.&nbsp;&nbsp;That was the largest monthly milk production on record.&nbsp;&nbsp;Production per cow of 2,128 pounds was a new record high.&nbsp;&nbsp;



In the South, USDA reports cow numbers and milk production for Georgia, Florida, Virginia, and Texas.&nbsp;&nbsp;Compared to last year, milk cow numbers were up 5,000 head in Florida, up 1,000 head in Georgia, and down 1,000 head in Virginia.&nbsp;&nbsp;Texas grew by 28,000 head in May, continuing the rapid growth in the Texas Panhandle.&nbsp;&nbsp;Growth in milk production in the other parts of the country means that milk production in the South continues to make up a shrinking share of U.S. milk production.



Production has been driven by profitable milk prices, growing milk processing capacity, record high calf and cull cow prices, and falling feed costs. The U.S. all-milk price (a weighted average price received by dairy farmers across all uses) began 2025 at $24.10 per cwt but fell to $17.50 by January 2026 as milk production expanded.&nbsp;&nbsp;In the face of rising milk production, milk price rebounded to almost $21 per cwt by April 2026.&nbsp;&nbsp;



Milk prices were driven higher by a tremendous increase in nonfat dry milk powder that increased from $1.18 per pound in January to $2.13 by June.&nbsp;&nbsp;But, it appears that production growth has begun to weigh on prices.&nbsp;&nbsp;Nonfat dry milk price has declined to $1.84 per pound at the end of June.&nbsp;&nbsp;Cheese, butter, and whey prices, the other major products used to calculate federal milk marketing order milk prices, are also declining.&nbsp;&nbsp;Lower dairy product prices will start to show up in dairy producer’s milk checks in coming weeks and months.&nbsp;&nbsp;Falling milk prices are not the only problem.&nbsp;&nbsp;Dairy producers face the same rising fertilizer and fuel prices as the rest of agriculture.&nbsp;&nbsp;Replacement heifer prices have hit record highs as supplies have tightened due to producing more crossbred dairy-beef calves rather than replacement heifers for sale.&nbsp;&nbsp;Milk production should decline seasonally during the coming months, but it will remain ahead of last year.&nbsp;&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-1.jpeg" alt="" class="wp-image-44352" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-1.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-1-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-1-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-1-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-2.jpeg" alt="" class="wp-image-44353" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-2.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-2-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-2-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-2-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-3.jpeg" alt="" class="wp-image-44354" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-3.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-3-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-3-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.28.2-3-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



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Recommended citation format: Anderson, David. &#8220;<a href="https://southernagtoday.org/2026/06/25/dairy-prices-slumping-amid-record-production/">Dairy Prices Slumping Amid Record Production</a>.&#8221; Southern Ag Today 6(28.2). July 7, 2026. <a href="https://southernagtoday.org/2026/06/25/dairy-prices-slumping-amid-record-production/">Permalink</a>

Dairy Prices Slumping Amid Record Production

Imagine you scouted one of your fields yesterday and an insect pest reached the threshold number for spraying. Today, you bring the tractor and sprayer to the field to minimize the potential damage to yield that could occur from the insect pest if it was left untreated. This is just one of dozens of operational management decisions and activities you do each day.



Obviously, these operational management decisions are critical for keeping your farm running as efficiently as possible. However, it is just as important for you, as a farm or ranch business manager, to spend time thinking beyond the current growing season and focus on management decisions that may affect your farm in the future. These long-term management decisions are considered strategic management.



Both operational and strategic management are necessary for the success of the farm or ranch business. Operational management is straight forward. If it hasn’t rained, you decide to irrigate. If it is time to apply a mid-season fertilizer, you apply fertilizer. If one of your calves gets sick, you quarantine her from the herd and treat her symptoms. Strategic management involves planning and making decisions for the farm or ranch business that will impact it in the next five years or longer. Strategic management answers the questions: “Where do I want to be?” and “What do I need to do to get there?”



Strategic management is identifying the vision and purpose of your farm or ranch business, setting goals for the near- and long-term, analyzing your farm’s strengths and weaknesses, evaluating opportunities and threats outside of the farm, and making decisions that steer you toward a desired goal or outcome. Those might include:&nbsp;&nbsp;goals for net worth or profit, goals for your operation to reach a certain size, a vision for your ideal way of life, or plans for retirement. The path to those outcomes may include decisions such as expanding the operation by acquiring more land or breeding livestock, adopting new technology, diversifying enterprises, entering new markets, hiring employees, or positioning the farm and the next generation for a successful transition.



In addition to your day-to-day operational management, you should set aside time to think strategically about the future. However, setting aside time when you are busy with operational management is easier said than done. Scheduling a set time to plan strategically is necessary. It will require you to block out several hours of your day a couple of times a month or more depending upon your goals. It may be easier for you to prioritize strategic management if you get away from the farm or ranch. A couple days away will enable you to focus entirely on planning for the future. It would be most beneficial if this occurs after you have compiled your financial data from the most recent year.&nbsp;&nbsp;Be sure to include any important partners or family members who are instrumental to the future of your farm.&nbsp;



&nbsp;There are many resources available to help you with this process. Several Land Grant Universities offer programs in strategic management through their Cooperative Extension Service. There are also numerous podcasts, case studies, and textbooks written on strategic management.&nbsp;<a href="https://www.sare.org/resources/building-a-sustainable-business/">Building a Sustainable Business</a>, is a useful guide to business planning and strategic management from Sustainable Agriculture Research and Education. It is downloadable for free online or available for purchase in print.



Strategic management is critical to the long-term success of your farm or ranch business. It is easy to get caught up in the daily operational management decisions, but when you incorporate strategic management, you will be better prepared for opportunities and challenges that may arise.



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Recommended citation format: Smith, Amanda R. &#8220;<a href="https://southernagtoday.org/2026/06/25/operational-and-strategic-management-for-your-farm-or-ranch-business/">Operational and Strategic Management for Your Farm or Ranch Business.</a>&#8221; Southern Ag Today 6(28.1). July 6, 2026. <a href="https://southernagtoday.org/2026/06/25/operational-and-strategic-management-for-your-farm-or-ranch-business/">Permalink</a>

Operational and Strategic Management for Your Farm or Ranch Business

In planning for the future of your land, conservation easements can be an effective tool for preserving the character and limiting use types. However, conservation easements won’t be right for everyone or in every circumstance. To determine whether a conservation easement is a good fit for your succession plan, consider how these agreements work, the financial implications, and your ultimate goals.



At their core, conservation easements are voluntary, permanent agreements that restrict certain uses of land in order to protect its conservation values. Importantly, landowners retain private ownership of the property and many traditional rights, such as the ability to live on, farm, timber, sell, or transfer the land subject to the specific terms of the easement. However, some property rights such as subdivision or development may be restricted. Conservation easements are individualized and can be tailored to the property’s characteristics, conservation objectives, and the landowner’s preferences.



Landowners should first carefully consider their long-term objectives such as whether the goal is environmental protection, capitalizing on tax incentives, or preservation for future generations and land use types.&nbsp;&nbsp;Factors such as economic impact, permanence, and future land use all play a critical role in this evaluation. When considering the ultimate goal, landowners should take into account how the land is currently being used and how heirs or successors may desire to use it in the future. Current land uses can easily be accounted for in conservation easements so long as they are consistent with conservation values. However, landowners wishing to expand current facilities and improvements for expansion purposes, may run into roadblocks once a conservation easement is in place.



Financial incentives are the carrot of conservation easements and the financial benefits hinge on the property’s valuation. The value of an easement is determined through a “before-and-after” appraisal method. First, the fair market value of the property as-is without a conservation easement is determined and then compared to the anticipated property value after the easement is in place. The difference between these two values represents the easement’s monetary value. This valuation must be supported by market data and considers the property’s “highest and best use,” defined as what is legally permissible, physically possible, financially feasible, and maximally productive. In many states, landowners may receive both state land preservation tax credits and federal income tax deductions. Generally, financial incentives are greatest in areas of high development pressure and/or sensitive environmental or conservation value.



Preparing a conservation easement involves a financial analysis, drafting and approving the easement, addressing any liens on the property, recording the agreement, and subsequently registering for tax credits. Existing lienholders must subordinate to the easement deed. During the process, it is important to consult a team of professionals including appraisers, attorneys, conservation organizations, and financial advisors.



Ultimately, conservation easements are a once-in-a-lifetime decision that permanently governs the future of a property. While protecting natural resources, maintaining working lands, and preserving family or community heritage, landowners retain ownership and are entitled to financial benefits. However, landowners do forego certain property rights pursuant to the terms of the easement. There are no takebacks should a landowner or successor change their mind or wish to utilize the property in a way that the conservation easement prohibits. One of the most common points of contention are limitations on imperviable surfaces. This can mean a limitation on an agricultural producer’s ability to expand operations. While some concerns can be resolved during drafting a conservation easement, they cannot be undone once the conservation easement is in place.&nbsp;



If you are considering placing your land in a conservation easement, consult experienced counsel, read the fine print, and ensure that a conservation easement is the right tool for your specific goals.&nbsp;



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Recommended citation format: Friedel, Jen S. &#8220;<a href="https://southernagtoday.org/2026/06/25/conservation-easements-as-part-of-a-succession-plan/">Conservation Easements as Part of a Succession Plan.</a>&#8221; Southern Ag Today 6(27.5). July 3, 2026. <a href="https://southernagtoday.org/2026/06/25/conservation-easements-as-part-of-a-succession-plan/">Permalink</a>

Conservation Easements as Part of a Succession Plan

Authors: Landyn Young and Luis A. Ribera



The United States-Mexico-Canada Agreement (USMCA) began July 1, 2020. The trade deal was a replacement for the North American Free Trade Agreement (NAFTA) which was done to help create reciprocal trade policies between the partner countries, increase trade and stimulate growth of their economies. While the deal is set to expire, unless an extension occurs, in 2036, the agreement will face review on the first of July. Both Canada and Mexico administrations have expressed their support of the trade agreement while the U.S. administration has expressed its reservations. Regardless of the results, it does not mark a true conclusion unless one member gives a formal intention to withdraw.&nbsp;&nbsp;



In 2019, the final full year of NAFTA, $41.3 billion of agricultural exports left the United States for Canada and Mexico, 29.3 percent of total U.S. agricultural exports (Figure 1). Since USMCA has been signed, annual agricultural exports totaled $59.3 billion in 2025, 34.6 percent of total U.S. agricultural exports. The largest category of products exported to Mexico and Canada since 2021 in terms of volume and value are grains and feeds which has accounted for 34.1 MMT of agricultural exports annually, or $13.9 billion (Figure 2). Grains and feeds ranked second during NAFTA, totaling 25.6 MMT worth $8.91 billion. Prior to USMCA, the largest export category to members in terms of value was animal products at $9.53 billion, estimated at around 3.87 MMT.



Imports from Canada and Mexico under USMCA have averaged 76 MMT annually worth $199 billion (Figure 3). The same timespan during the final years for NAFTA imports averaged 64.3 MMT worth $131 billion. In 2019, agricultural imports under NAFTA were 39.7 percent of total U.S. agricultural imports, while in 2025 they represented 39.1 percent under USMCA. Imports have increased across the board with each product category retaining a similar import share to that in NAFTA (Figure 4). Vegetables continue to hold the highest share of imported agricultural products from Canada and Mexico at 18.2 percent or $14.2 billion annually, as well as totaling 10.7 MMT. Under NAFTA, vegetable imports from the two partners totaled $9.25 billion and 8.6 MMT.&nbsp;&nbsp;Overall, both NAFTA and USMCA have been successful when you look at the overall objectives of the trade agreement, reduce tariff and non-tariff barriers and increase trade among member countries.



Figure 1. U.S. Value of Agricultural Exports, 1990-2025



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="646" height="485" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-1.png" alt="" class="wp-image-44260"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS</figcaption></figure>



Figure 2. Comparing NAFTA and USMCA Agricultural Trade, U.S. Export Value



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="737" height="553" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-2.png" alt="" class="wp-image-44261"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS Note:comparing 2019 NAFTA and average USMCA</figcaption></figure>







Figure 3. U.S. Value of Agricultural Imports, 1990-2025



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="677" height="508" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-3.png" alt="" class="wp-image-44262"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS</figcaption></figure>



Figure 4. Comparing NAFTA and USMCA Agricultural Trade, U.S. Import Value



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="694" height="521" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-4.png" alt="" class="wp-image-44263"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS Note: comparing 2019 NAFTA and average USMCA</figcaption></figure>



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Recommended citation format: Young, Landyn, and Luis A. Ribera. &#8220;<a href="https://southernagtoday.org/2026/06/25/from-nafta-to-usmca/">From NAFTA to USMCA</a>.&#8221; Southern Ag Today 6(27.4). July 2, 2026. <a href="https://southernagtoday.org/2026/06/25/from-nafta-to-usmca/">Permalink</a>

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