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Thursday, Aug 6
Save US Farms
The Daily Dirt · 2026-07-14-morning

The Daily Dirt — Morning Edition

Labor bill heats up the debate over farmworker visas and wages. Heat threatens corn pollination as debt crush deepens. Conservation wins land enrollments.

The bottom line
  • House Agriculture Committee Chair Thompson's bipartisan H-2A reform bill, introduced June 30, is drawing sharp lines: growers say year-round visa access is critical as labor costs squeeze already-stressed margins; farmworker advocates warn the expansion will suppress wages and enable abuse of a vulnerable workforce dependent on employers for legal status.
  • July heat and early-season dryness across portions of the Western Corn Belt threaten corn yields during the critical pollination window, with some forecasters projecting 5-6% yield losses in affected areas despite generally favorable early conditions reported as of mid-July.
  • USDA forecasts $624.7 billion in farm sector debt for 2026 (up $30.8 billion from 2025) as elevated input costs, especially fertilizer and livestock feed, combine with compressed commodity margins, forcing farmers into deeper borrowing even as interest expenses hit record $33 billion annually.
  • Farmers entering the second half of July face a widening gap between production costs and commodity prices: National Corn Growers Association data shows U.S. farmers paying substantially more for seeds and pesticides than counterparts in Brazil, while average corn production costs run $935.79 per acre nationwide.
  • The USDA agreed to enroll 2.2 million acres in the Conservation Reserve Program out of 2.5 million acres offered by landowners under the spring and fall signups, supporting conservation easements and marginal land retirement as input-cost pressure mounts.
  • With the legislative window narrowing before recess, corn, soybean, and ethanol groups are rallying on Capitol Hill to push year-round E15 fuel sales, additional crop support payments, and a new farm bill that addresses input costs and debt relief.

Good morning. The farm desk is tracking labor policy fireworks, weather warnings, and deepening financial strain as July unfolds. Here’s what’s moving:

Labor and Wages: The fight over H-2A visa expansion is crystallizing. Thompson’s bill removes the seasonal requirement that has gated H-2A to temporary crops, opening year-round operations like dairy to foreign workers for the first time in the program’s four-decade history. Growers see labor access as essential when farm debt is climbing to record $624.7 billion; farmworker advocates fear wage suppression and abuse in a program where workers depend entirely on employers for housing, legal status, and pay.

Growing Conditions: Heat and early dryness threaten corn yields during pollination, with 5-6% losses projected in the hardest-hit Western Corn Belt counties. Widespread rain earlier in the week helped, but tighter weather margins heading into late July remain a risk.

Input Squeeze: Fertilizer costs are running 10-15% above last year, regional variation notwithstanding, while corn production costs now average $935.79 per acre nationwide. Growers are also paying more for seed and pesticides than farmers in Brazil, widening the cost-price squeeze that’s driving record bankruptcies.

What to watch: The legislative window is shrinking before recess. Farm groups are pushing Congress hard on year-round E15, crop support payments, and a new farm bill that addresses the input-cost crisis. Thompson’s H-2A bill will test whether grower and labor interests can find common ground or whether the vote fractures along wage and displacement lines.

—Save US Farms Desk

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