USDA publishes record corn yield, prices decline (Farm Progress): The U.S. Department of Agriculture stunned grain markets by reporting that the 2025 U.S. corn crop reached a record-high volume of just over 17 billion bushels, driven by unexpectedly strong yield and harvested acreage figures. The USDA’s annual Crop Production summary showed average corn yields of about 186.5 bushels per acre and an expansion in harvested acres, resulting in a supply outlook that far exceeded trade expectations. Analysts and market participants described the report as “blindsiding” the market, given its bearish implications for commodity prices.
The surge in projected supply triggered a steep drop in corn futures, pushing prices to their lowest levels in months as traders adjusted to the prospect of abundant stock levels and downward pressure on prices. Soybean futures also retreated, and many farmers and industry observers expressed concern that the surplus outlook will continue to burden crop prices and squeeze producer profitability if demand doesn’t strengthen.
USDA announces expansion of dairy margin coverage and boosts Section 32 commodity purchases (USDA Press Release): At the American Farm Bureau Federation’s 107th convention, U.S. Agriculture Secretary Brooke L. Rollins unveiled key initiatives aimed at strengthening the farm economy and supporting producers. Rollins announced that enrollment is open for the 2026 Dairy Margin Coverage (DMC) program, a critical safety-net tool that helps dairy farmers manage the gap between milk prices and feed costs. Changes under the One Big Beautiful Bill Act have enhanced the program by increasing coverage levels and offering more favorable terms, including an option for six-year locked-in coverage with reduced premiums. Enrollment runs from January 12 through February 26, 2026, giving producers time to secure this risk-management support.
In addition to the DMC expansion, USDA revealed plans to utilize Section 32 authority to purchase up to $80 million in U.S.-grown specialty crops. These purchases will be directed to food banks and nutrition assistance programs, helping both agricultural producers and communities in need. Rollins framed these moves as part of a broader effort to support American farmers, strengthen markets and ensure nutritious food reaches vulnerable populations.
USDA halts $129 million in Minnesota funding amid fraud allegations (Agri-Pulse): The U.S. Department of Agriculture has abruptly paused roughly $129 million in federal funding to Minnesota and Minneapolis, citing alleged fraud as the rationale for the suspension. Agriculture Secretary Brooke Rollins notified Governor Tim Walz and Minneapolis Mayor Jacob Frey that both current and future USDA grants would be frozen immediately, a move that comes just as top agricultural officials and lawmakers convene at an American Farm Bureau Federation event in Anaheim, California. While USDA maintains the freeze applies only to grants and not programs like SNAP, state officials are still evaluating potential broader impacts.
The decision adds another layer to growing political friction, intersecting with broader disputes over federal funding and ongoing local tensions following the fatal shooting of Renee Nicole Good by an ICE officer in Minneapolis. The funding halt also follows a federal judge’s temporary block on the administration’s attempt to withhold billions in social service funds to several Democratic-led states, including Minnesota. Republicans have praised the USDA’s action as necessary accountability, whereas Minnesota Democrats have condemned it as punitive.