September 30, 2025
USDA Issues Second Assistance Payment to Producers
The USDA will issue a second Emergency Commodity Assistance Program payment to eligible producers for the 2024 crop year. Of the authorized $10 billion in ECAP assistance, USDA’s Farm Service Agency has already provided over $8 billion in payments to eligible producers to mitigate the impacts of increased input costs and falling commodity prices. “Initial ECAP payments were factored by 85 percent to ensure that total program payments didn’t exceed $10 billion in available funding,” said USDA Deputy Undersecretary Brooke Appleton. “Because additional funds remain, FSA is issuing another payment.” Payments will automatically be made to eligible producers with approved ECAP applications who received an initial payment. Any application approved after September 25 will receive one lump sum. “These payments, combined with the entire suite of supplemental disaster assistance programs, will help producers navigate market uncertainty, pay down debt from the 2024 crop year, and secure financing for 2026,” Appleton said.
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Bankruptcies Rising in the Fed’s Ninth District
The past few years have been challenging for farmers in the Federal Reserve’s Ninth District. The latest Minneapolis Fed Ag Credit Survey shows the pressure is growing on the district’s producers, with slumping incomes and worsening financial conditions over the last two years. “Farmers are suffering this year,” a North Dakota lender commented on the survey. “If it’s prolonged into 2026, we could see some farms fail.” While the number of bankruptcies has risen, the total remains low by historical standards, but there are reasons to expect those numbers to increase. Court information shows the number of operations filing for Chapter 12 increased in the first two quarters of this year. However, the increase does come off a very low floor, and the overall level is still very low as a total of nine farms in the Ninth District filed for bankruptcy in the second quarter of this year.
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Rural Mainstreet Index Turns Negative
The August Rural Mainstreet Index covering a multi-state region shows one-fifth of grain farmers will experience a negative cash flow in 2025. For the seventh time this year, the overall regional economic index sank below growth-neutral, falling to 38.5 in September, down from 48.1 in August. Also, for the 16th time in the past 17 months, farmland prices sank below growth-neutral. Elevated interest rates, higher input costs, and below breakeven prices caused the downward pressure on farmland. Farm equipment sales dropped below growth neutral for the 25th straight month. Three out of four bank CEOs reported that tariff increases have had a negative impact on farm operations. “Weak agricultural commodity prices for grain producers continue to dampen economic activity in the ten-state region covered by the Index,” said Dr. Ernie Goss (Gahs). “Falling agricultural commodity prices represent the greatest threat to agricultural banks over the next 12 months.”
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AGCO Seeks Appeal in Right-to-Repair Lawsuit
AGCO is asking a federal court to allow a rare interlocutory appeal in the Federal Trade Commission’s ongoing right-to-repair lawsuit against John Deere. The request follows an August ruling that granted Deere access to confidential competitor information gathered during the FTC’s investigation, including details like sensitive pricing, sales, and financial data from AGCO, as well as CNH Industrial and Kubota. AGCO argues the ruling lacks the heightened protections usually applied to non-party materials and says immediate review is needed to prevent disclosure of vital business information. Once released, the company contends that the data cannot be protected from misuse in either the FTC case or related farmer lawsuits. Farm Equipment Magazine says the appeal would go to the U.S. Court of Appeals for the Seventh Circuit, where AGCO hopes to clarify what legal standards govern the release of government-held competitor data in antitrust cases. Deere vows to vigorously defend itself.
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Investments to Increase Soybean Export Capacity
Soybean farmer leaders were in Houston, Texas, in late September to present a ceremonial check worth $275,000 to The Andersons, Inc., for their expansion project at the Port of Houston. Once the project is completed in the first quarter of 2026, the expansion will enable the facility to export soybean meal. By investing in the project, soybean farmer leaders are taking concrete steps to increase soybean meal export capacity. One of the more significant developments in the U.S. soybean industry continues to be the investment in processing facilities in order to produce more soybean oil for renewable fuels. The additional production of soybean oil will result in the production of more soybean meal. While much of the meal will be consumed by the livestock industry, it’s increasingly important to invest in additional export capacity to connect with international markets. It’s also increasing the resilience and diversity of the U.S. supply chain.
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NFU Reacts Positively to Competition Investigation
National Farmers Union President Rob Larew reacted positively to a recent announcement from the USDA and Department of Justice. He issued a statement applauding the news after the two agencies came together in a new initiative to scrutinize competitive conditions in the agricultural marketplace. “American agriculture is at a breaking point,” Larew said. “Rising input costs are hitting family farmers and ranchers hard, and corporate consolidation is a major cause.” He also said that if just a handful of companies control the markets for seed, fertilizer, and other farm supplies, they can raise their prices at will. “This leaves farmers squeezed between skyrocketing costs and low prices for their products, which is unsustainable for farm families, rural communities, and consumers,” Larew said. The Farmers Union commends the USDA and DOJ for hearing the group’s call to action, confronting the challenges, and looks forward to easing the economic burden in farm country.
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