Lot No. LOT-8908 · offered October 9, 2026

Agricultural PolicyLot sheet

Oil at $100, harvest costs double: Trump's China week

Diesel at $100 oil pushes combine fuel to a projected $200/hour, doubling harvest costs as Trump prepares for Xi talks, a farm bill vote, and an FDA hearing.

Market notes

  • Oil near $100/barrel; South Dakota farmer Drew Peterson spending ~$500/day in diesel; combine fuel projected at $200/hour, double the historical norm
  • China pledged to buy 25 million metric tons of U.S. soybeans annually 2026-28, with a separate $17 billion U.S. ag products deal announced in May
  • Senate Ag Committee advanced the farm bill on a party-line vote; first five-year farm bill would be the first since 2018
  • AFBF projects the One Big Beautiful Bill Act will add $65.6 billion in ag-focused spending over the next decade
  • Trump has called for roughly $12 billion in additional farmer aid; FDA nominee Heidi Overton testifies Thursday before the Senate Health Committee

With oil at roughly $100 a barrel, South Dakota farmer Drew Peterson is burning about $500 a day in diesel just to move last year's corn to market — and the projected fuel cost for his combine this fall is double the historical norm.

"I've heard people project that our costs of fuel per hour just for the combine is going to be close to $200 an hour, which is double what it would normally be," Peterson told Agri-Pulse Newsmakers. "It's a real challenge to have these increased input costs when our commodity prices over the last few years have not kept pace."

The pressure lands on the doorstep of a White House managing a week of high-stakes diplomacy, a possible farm bill vote, and a new FDA confirmation hearing.

How is the Trump administration balancing China, fuel, and Iran?

President Donald Trump addresses the United Nations General Assembly in New York on Tuesday before a week of bilateral and multilateral meetings. Nearly 130 heads of state and government are scheduled to deliver remarks.

Trump holds his first meeting with U.K. Prime Minister Andy Burnham on Tuesday, then meets Japanese Prime Minister Sanae Takaichi. He also convenes a multilateral session with Gulf Cooperation Council leaders focused on the war with Iran, before hosting Chinese President Xi Jinping at the White House on Thursday for a state dinner.

U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent meet Chinese Vice Premier He Lifeng in New York on Sunday to lay the groundwork. "The Trump administration will continue to pursue balanced trade with China by monitoring the implementation of recent commitments, optimizing trade in non-sensitive goods, and improving market access for American farmers, manufacturers, and workers," Greer said in a statement.

What are soybean and sorghum growers demanding from Xi?

The American Soybean Association and National Sorghum Producers want firm delivery on China's pledge to buy 25 million metric tons of U.S. oilseed annually from 2026 through 2028. They also want details on a separate May announcement in which Trump administration officials said China would purchase about $17 billion in U.S. agricultural products.

Higher trucking and shipping costs tied to fuel are amplifying concerns about the tariff war with Canada and Brazilian crop sales to China, which compete directly with U.S. soybeans.

Will the Senate move a farm bill before the October recess?

The Senate reconvenes Tuesday afternoon, with the bill's fate hanging on whether enough Democrats can be brought into a deal before a five-week recess beginning in early October. The Senate Agriculture Committee advanced the legislation last week on a party-line vote with no Democratic support, amid disagreement over Supplemental Nutrition Assistance Program benefit costs in some states.

The current bill would mark the first five-year farm bill since 2018. Many key USDA programs were already updated in last year's One Big Beautiful Bill Act, which the American Farm Bureau Federation projects will boost agriculture-focused spending by about $65.6 billion over the next decade. The House passed its version in April and unexpectedly adjourned until Nov. 9.

Senate Agriculture Chairman John Boozman, R-Ark., said the chamber is running short on time. "We're running out of time and we're rapidly losing a window that we can actually get this thing passed," Boozman said last week. "We need to start working together and get these things resolved." His aides say Boozman is willing to work through the October recess.

Can Trump deliver the $12 billion in farmer aid?

Trump has called for roughly $12 billion in additional aid for the agriculture sector and said "much needed" economic help is on the way. Neither the Senate nor House farm bills include farmer aid, and the Senate has not advanced a House-passed reconciliation bill containing the assistance.

Boozman told reporters he believes the financial help can still happen this year by attaching it to supplemental funding legislation, though doing so before the midterm elections will be difficult.

Who is Trump's FDA pick?

The Senate Health Committee on Thursday hears from Heidi Overton, a surgeon and senior healthcare adviser to Trump, nominated to lead the Food and Drug Administration. Overton helped lead the Make America Healthy Again Commission and supports banning certain food dyes, revising the Generally Recognized as Safe pathway, and defining ultra-processed foods.

She would replace Marty Makary, who resigned in May after roughly a year on the job. The week opens with USDA's crop progress report at 4 p.m. Monday and an Ag Outlook Forum in Kansas City, Mo., featuring USDA Chief Economist Justin Benavidez, Dairy Farmers of America President Dennis Rodenbaugh, and Farm Production and Conservation Undersecretary Richard Fordyce.

The week ahead will test whether Trump's diplomacy converts into firm Chinese soybean purchases, whether the Senate can move a farm bill and supplemental aid before the calendar runs out, and whether Overton clears her confirmation before a packed fall agenda crowds out committee time.

via soygrowers.com (Original)

Filed under

  • farm-bill
  • china-trade
  • farmer-aid
  • fuel-costs
  • soybeans
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