Thursday, September 4, 2025

This Week's Drought Summary (9/4)

This U.S. Drought Monitor (USDM) week saw widespread degradation in drought-related conditions across areas of the Midwest, Mid-Atlantic, and Northeast where precipitation during the past 30-day period has been below normal. In these areas, rainfall deficits ranged from 3 to 5 inches with the largest deficits observed across areas of New England and Lower Midwest. Elsewhere, short-term dryness and drought impact reports from the agricultural sector led to degradations in isolated areas of the Southeast and South. For the week, most of the eastern half of the conterminous U.S. experienced unseasonably cooler temperatures, while temperatures out West were above normal, especially across the Pacific Northwest and Desert Southwest. In the West, conditions were generally dry, however, some isolated monsoon thunderstorm activity was observed in the Southwest, Sierra Nevada Range of California, Great Basin, and in the Rocky Mountains. In the Pacific Northwest, continued dryness as well as declining streamflow and soil moisture levels led to expansion of areas of exceptional drought in the Idaho Panhandle. In terms of reservoir storage in the West, California’s reservoirs continue to be at or above historical averages for the date (September 2), with the state’s two largest reservoirs, Lake Shasta and Lake Oroville, at 104% and 112% of average, respectively. In the Southwest, the U.S. Bureau of Reclamation is reporting (September 1) Lake Powell at 29% full (44% of average for the date), Lake Mead at 31% full (52%), and the total Colorado system (September 1) at 38% of capacity (compared to 44% of capacity the same time last year).



Northeast

On this week’s map, widespread degradations were made on the map including expansion of areas of drought in West Virginia, Pennsylvania, New Jersey, New York, Vermont, New Hampshire, and Maine. The most severe drought in the region is currently centered on areas of central Maine and northern portions of Vermont and New Hampshire. In these areas, numerous observing stations reported precipitation totals for the past three-month period that were in the top-5 driest on record including Barre, Vermont (-6.76-inch departure from normal; driest on record), Berlin, New Hampshire (-3.95 inches; driest on record), and Portland, Maine (-5.87 inches; 3rd driest on record), according to data from the Southeast Regional Climate Center (SERCC). Moreover, numerous streams and rivers across the region were reporting streamflows that are well below normal levels, according to the U.S. Geological Survey. For the week, much of the region was quite dry; however, some light rainfall accumulations (<2 inches) were observed across isolated areas New York, Connecticut, Massachusetts, New Hampshire, and Vermont. Average temperatures were below normal across most of the region, especially in the southern extent, where temperatures were 8 to 12 degrees F below normal.

Southeast

During the past week, light-to-moderate rainfall accumulations were observed across isolated areas in the southern extent of the region in Florida, southern Georgia, southeastern South Carolina, and western Alabama, with the heaviest accumulations (ranging from 3 to 4 inches). On the map, dryness during the past 30-day period led to introduction of Abnormally Dry (D0) areas in the Carolinas and Georgia as well as introduction of a small area of Severe Drought (D2) in southwestern Alabama where 30-day rainfall departures ranged from 3 to 5 inches. In South Florida, improving conditions during the past 30-day period led to some minor improvements on the map. In terms of average temperatures for the week, most of the region experienced well-below-normal temperatures, with the greatest anomalies (4 to 8+ degrees F) observed across the Carolinas, central Georgia, and northern Alabama.

South

On this week’s map, improvements were made in eastern Texas, northern Louisiana, northern Arkansas, and central Oklahoma in response to locally heavy rainfall (ranging from 2 to 6+ inches) observed during the past week. Elsewhere, short-term dryness led to introduction of areas of Abnormally Dry (D0) in areas of Texas including the Panhandle and Edwards Plateau. In Tennessee, degradations were made on the map in central and western portions in response to precipitation shortfalls (1 to 4 inches) during the past 30-day period. In terms of hydrologic conditions in Texas, the state’s reservoirs (cumulatively) were 77% full with many in the eastern part of the state in good condition (over 90% full), while numerous others in the western portion of the state continue to experience below-normal levels, according to Water Data for Texas (September 3). For the week, average temperatures were below normal (2 to 8 degrees F) across most of the region with the exception of southern and western portions of Texas where temperatures were 1 to 5 degrees above normal.

Midwest

Widespread degradations were made across the region in response to precipitation shortfalls (ranging from 2 to 4+ inches) during the past 30-day period. Record to near-record dryness (for the past 30-day period) was observed at numerous observing stations across the region including Cincinnati Airport (AP), Ohio (-2.71 inch departure from normal; driest on record), Columbus AP, Ohio (-3.1 inches; driest on record), Springfield, Illinois (-3.21 inches; 2nd driest on record), and Springfield AP, Missouri (-3.45 inches; driest on record), according to the SERCC. Additionally, numerous drought impact reports (agricultural sector) were reported during the past seven days to the National Drought Mitigation Center’s Condition Monitoring Observer Report (CMOR) system—primarily from southern Missouri, north-central Kentucky, and southern Ohio. For the week, average temperatures were well below normal (2 to 15 degrees F) across most of the region, while northern Minnesota saw positive anomalies ranging from 2 to 6+ degrees F above normal.

High Plains

On this week’s map, improvements were made in the region, namely in northern Kansas, and southern Nebraska, where some isolated shower activity (1 to 5+ inches) during the past week continued to help chip away at the longer-term precipitation deficits. For the past 60-day period, the Lincoln AP observed its 6th wettest on record with 10.24 inches (+3.69 departure from normal), according to the SERCC. Conversely, conditions deteriorated on the map in the southwestern extent of South Dakota where a combination of short and long-term precipitation deficits have persisted leading to expansion of areas of Moderate Drought (D1). For the week, above-normal temperatures (ranging from 2 to 10 degrees F) were logged across northern North Dakota, while much of the remainder of the region experienced below normal temperatures (ranging from 1 to 10 degrees F), especially in the southern extent of the entire region.



West

Out West, some isolated monsoon shower activity was observed across areas of the Desert Southwest, Sierra Nevada, and Great Basin as well as areas of the central and northern Rockies. Improvements were made on the map in Colorado, western Montana, southern Idaho, northern Utah, and southeastern California, while some degradations were made in north-central Arizona where monsoon-season precipitation has been below normal. According to the National Weather Service in Tucson, 2025 monsoon rainfall has been below normal across much of the state including Flagstaff, Phoenix, and Tucson. Conversely, a more active monsoon season has affected areas of New Mexico including southern and eastern portions of the state. For the week, average temperatures were below normal across areas of eastern California, central Great Basin, and areas of the Intermountain West including Utah, Colorado, and southern Wyoming where temperatures were 5 to 10 degrees below normal. In the Pacific Northwest, temperatures were above normal with anomalies ranging from 2 to 15 degrees F and the greatest departures observed in eastern Washington, Idaho Panhandle, and northwestern Montana.



Caribbean

In Puerto Rico, the map remained status quo for the week.

For the drought week of August 27th-September 2nd, 2025, relatively dry conditions were observed across the U.S. Virgin Islands (USVI) making this the second consecutive dry week since the passage of Hurricane Erin’s outer rain bands and locally heavy rainfall. This week was characterized by a mix of sunshine and periods of cloud cover, with generally scattered showers and a few thunderstorms. There were periods of elevated heat risk, especially late in the drought week with southeasterly flow bringing an increase in low-level moisture. Despite the approach of a mid-level trough from the northwest and moisture from a tropical wave passing south of the Islands, satellite-based (SPoRT IMERG) rainfall estimates over the last 7 days show that most of the precipitation remained southwest of the region.

On the island of St. Croix, weekly precipitation amounts ranged from 0.05-inch at VI-SC-29 (Frederiksted 2.5 NNE) to 1.04 inches at VI-SC-35 (Frederiksted 1.3 ENE). Intermediate precipitation values included 0.17-inch at VI-SC-24 (Christiansted 2.1 ENE, 3 days missing), 0.27-inch at VI-SC-23 (Christiansted 6.5 W), 0.30-inch at VI-SC-25 (Christiansted 4.4 W), 0.35-inch at VI-SC-34 (Frederiksted 1.9 NE), 0.39-inch at VI-SC-10 (Christiansted 1.6 E), an even half-inch at VI-SC-20 (Frederiksted 1.7 ESE), and 0.54-inch of rain at VI-SC-30 (Christiansted 1.7 SW). The Adventure 28 Well maximum and minimum water levels below the land surface ranged from 18.06 feet (2:45 a.m., August 28th) to 18.50 feet (4:45 p.m., September 2nd). Though there were relatively small rises and falls in water level throughout the drought week, an overall decline was noted. The Standardized Precipitation Index (SPI) values at the 1-, 3-, 6-, 9-, and 12-month periods for East Hill (#672560) were, respectively: -1.13, -1.64, -0.31, -0.23, and +0.71. Values have worsened (decreased) for each of the time periods compared to last week, except for the 12-month SPI which stayed the same. Given the weekly observed rainfall amounts, groundwater levels, and SPI values, St. Croix’s drought designation remains D1(S). The possibility of future degradation within the next few weeks will be monitored closely.

On St. John, weekly accumulated precipitation amounts ranged from 0.03-inch at VI-SJ-10 (Cruz Bay 3.1 NNW) to 0.90-inch at VI-SJ-8 (Cruz Bay 7.4 E). An intermediate total of 0.19-inch of rain was measured at Windswept Beach (VI-SJ-3). However, the observer noted 0.45-inch of rain fell shortly after this week’s data cutoff, and therefore will be included in next week’s precipitation total. The rainfall totals for the past three months are 7.26 inches in August, 2.07 inches in July, and 1.36 inches in June. The Susannaberg Dpw 3 Well maximum and minimum water levels below the land surface ranged from 12.43 feet (3:00 p.m., August 27th) to 12.67 feet (11:00 a.m., September 2nd). A slow decline in wellwater level was noted this week. The SPI values at the 1-, 3-, 6-, 9-, and 12-month periods for Windswept Beach were, respectively: +0.74, +0.19, +0.49, +0.51, and +0.68. Positive values at all the time ranges do not support any drought, despite the relatively light precipitation received this past drought week.

On the island of St. Thomas, weekly rainfall measurements included 0.16-inch at VI-ST-13 (Charlotte Amalie 1.2 NNW) and 0.17-inch at VI-ST-15 (Charlotte Amalie West 1.3 N). The Grade School 3 Well maximum and minimum water levels below the land surface ranged from 6.95 feet (3:00 p.m., August 27th) to 7.45 feet (9:00 a.m., September 2nd). A smooth decline in water level was noted during the week, except for a slight rise in water level towards the end of the period. The SPI values at the 1-, 3-, 6-, 9-, and 12-month periods for the Cyril E. King Airport (#11640) were, respectively: +0.04, -0.86, +0.41, +0.53, and +1.05, indicating similar numbers to last week. Though the weekly precipitation amounts were light and groundwater levels declined, drought-free conditions remain at St. Thomas.

Pacific

In Alaska, improving conditions led to the removal of areas of Abnormally Dry (D0) along the North Slope, Interior, and Southcentral Alaska, while D0 was introduced across the central Gulf Coast and Southeast Alaska due to combination of below-normal rainfall during the past 30 to 60 days and above-normal temperatures during the past few weeks.

In the Hawaiian Islands, dry conditions prevailed across most of the island chain except for some light accumulations on the leeward side of the Big Island. Overall, the past 30-day period has been dry across the majority of the state aside from some modest rainfall events that helped to improve monthly totals to average or above. On this week’s map, areas of Abnormally Dry (D0) were added on the leeward side of the Big Island, and North Shores of Oahu and Kauai.

The U.S.-Affiliated Pacific Islands (USAPI) domain was primarily dominated by such features as trade wind troughs, weak circulations, the InterTropical Convergence Zone (ITCZ), the Monsoon Trough (MT), and regions of low-level convergent flow. South of the equator, the drought week was characterized by generally fair weather, subtropical ridging, and light precipitation on most days. Towards the end of the week, cloudiness and shower activity were increasing across the region, as an east-west-oriented ridge axis approached the region from the south, and a trough line approached from the north-northeast. Increasingly moderate-to-fresh southeast winds were occurring over the region as the ridge axis approached from the south. No major tropical cyclones were noted during this past drought week over the USAPI domain. Perhaps the most active weather occurred over the western Federated States of Micronesia (FSM) area and the nearby Republic of Palau. A monsoon pattern dominated this region during most of the past week. As the monsoon pattern evolved and drifted northward (accompanied by a surge in the monsoon flow), west-southwest winds set up over Palau and Yap, accompanied by very moist flow and periods of gusty showers and locally heavy rain. These west-southwest winds, which flow contrary to the usual easterly trade winds at these low latitudes are consistent with the location of the so-called “Monsoon Trough” (MT). Towards the end of the drought week, a subtropical ridge had settled across Palau and Yap, allowing winds and showers to briefly diminish.

Over the tropical western North Pacific, from about the equator to 10N and 130E to 170E (which encapsulates most of the USAPI region), quantitative precipitation estimates (QPE) from SPoRT IMERG satellite imagery ranged from about 0.5-4.0 inches. From about 10-15N along the same longitude band (which includes most of the Commonwealth of the Northern Mariana Islands (CNMI), only 0.5-1.0 inch amounts were generally noted. The satellite estimated rainfall for the CNMI region appears underdone in comparison to the rain gauge measurements described below. This may be due to a combination of factors such as the highly localized and rapidly changing convective conditions over this area, the limitations of satellite sensors in “seeing” through the tops of extremely deep convective clouds, and infrared satellite sensor inaccuracies when estimating rainfall rates based on cloud-top temperature which varies widely over the oceanic tropics. Local orographic enhancement may also be a partial contributor. Over American Samoa south of the equator, 0.5-inch or less of precipitation was estimated.

Across American Samoa, three-quarters of an inch of rain was measured at the Pago Pago WSO Airport, well shy of the 2-inch minimum requirement to meet most water needs for a week. The preliminary rainfall accumulation for the month of August is 3.45 inches (about half of its normal 6.93 inches), though 7 of the past 11 months have registered as “wet” (i.e., 8 inches or more). For the higher elevation sites of Siufaga Ridge and Toa Ridge, the past weekly and preliminary August monthly rainfall totals are, respectively: 0.49, 1.43 and 0.12, 1.15, which fall well short of minimum water requirements for a week and month. Despite the recent dryness, Tutuila maintains its dryness- and drought-free designation.

For the Commonwealth of the Northern Mariana Islands (CNMI), the Rota Airport measured 2.95 inches of precipitation for the past week and 14.79 inches for the August total (preliminary), both of which registered “wet” (i.e. met or exceeded the weekly and monthly precipitation thresholds of 1-inch and 4-inches, respectively). This marks the 8th consecutive wet week for Rota, as well as the third consecutive wet month. Rota continues to be drought-free. The Saipan International Airport reported 3.59 inches of rain this past drought week and 8.61 inches for August (preliminary), easily surpassing weekly and monthly water requirements. This marks the third consecutive wet month for the site. Accordingly, Saipan retains its drought-free status this week. In Agat, 2.38 and 11.58 inches of precipitation were noted for the past week and August (preliminary), respectively. Eleven of the past 12 weeks have been “wet”, as have the last 3 months. Dededo measured 2.04 inches of precipitation this week, marking the 8th consecutive wet week. Their August preliminary rainfall total is 9.35 inches. Tinian measured 1.49 inches of rain this past drought week, with 4.88 inches reported for the month of August (preliminary). Tinian was also “wet” in July, and remains drought-free. The island territory of Guam recorded 3.91 inches of rain this week, which is nearly as much as the monthly rainfall requirement (4 inches). This is now the tenth consecutive wet week. Guam received 13.06 inches of rain (provisional) in August, and the last three months were wet. The island territory remains drought-free this week.

The majority of stations across the Federated States of Micronesia (FSM) came in with adequate rainfall amounts this week to meet most water needs. Precipitation during the past week and for the month of August (provisional) at the FSM stations include, respectively: Pohnpei (6.59 inches, 22.54 inches), North Fanif (5.19, 14.15), Lukunoch (5.01, 12.20), Kosrae (4.56, 26.17), Chuuk (4.34, 13.74), Rumung (4.05, 15.69), Yap Island Airport (3.56, 10.23), Woleai (3.41, 10.65), Pingelap (2.52, 11.68), Kapingamarangi (1.79, 10.11), and Nukuoro (1.48, 7.55). Most of these reporting stations this week were “wet”, except for Kapingamarangi and Nukuoro which were “dry”. A few other statistics include: 11 of the past 12 weeks were wet, as were the past 11 months at Pohnpei; 4 consecutive wet months at North Fanif; 9 consecutive wet months at Lukunoch; 12 consecutive wet weeks and 11 consecutive wet months at Kosrae, 8 of the past 11 months were wet at Chuuk; 9 of the past 11 months were wet at the Woleai atoll; July and August 2025 were both wet months at Kapingamarangi; and 9 of the past 11 months were wet at Nukuoro. Dryness- and drought-free conditions continue this week at all these locations, including Nukuoro despite the marginal dryness this past week and month. No analysis was possible this week at Ulithi and Fananu due to lack of rainfall data.

The Republic of Palau experienced another very wet week and month. Koror measured 5.75 inches of rain this past week, making 11 of the past 12 weeks wet. The preliminary August total is 19.33, making the last 11 months wet. For Airai (WSO Palau), the weekly rainfall accumulation totaled 6.48 inches, and the preliminary August total is 18.91 inches. Drought-free conditions persist in Palau.

In the Republic of the Marshall Islands (RMI), Automatic Weather Stations (AWS) were installed in the atolls to gather precipitation data. The greatest precipitation total this week occurred at Ailinglaplap, where 6.10 inches of rain was reported, marking the 5th straight wet week. Ailinglaplap’s drought designation remains as drought-free. The next highest weekly rainfall amount was 4.83 inches at Kwajalein, with a provisional August total of 8.29 inches. The most recent week and month both registered as “wet” periods in Kwajalein. The last wet month reported at this site was in November of last year (2024) when 8.83 inches of rain fell. Despite these statistics, Kwajalein’s designation remains at D0-S (short-term dryness). Mili measured 3.90 inches of rain this week, with a preliminary August rainfall total of 12.09 inches. Mili remains drought-free this week. Majuro came in with 1.68 inches of rain this week which registers as “dry”, though 9 of the past 12 weeks were wet. The provisional August total is 10.76 inches, and the last 3 months have been wet. Despite this most recent dry week, Majuro retains its drought-free depiction. Finally, 0.63-inch of precipitation fell at Utirik this week, with a preliminary August total of 4.29 inches. Utirik’s drought designation remains as short-term moderate drought (D1-S). Due to the unavailability of rainfall data at Jaluit and Wotje, no analysis was performed at those stations.

Looking Ahead

The NWS Weather Prediction Center (WPC) 7-Day Quantitative Precipitation Forecast (QPF) calls for moderate to heavy precipitation accumulations across areas of the Desert Southwest (southeastern Arizona) in association with remnant moisture from Hurricane Lorena. Additionally, heavy rainfall is expected in southern Florida, while light-to-moderate accumulations are expected across areas of the Pacific Northwest, Rockies, Texas, Lower Midwest, and Northeast. The Climate Prediction Center (CPC) 6-10-day outlooks call for a moderate-to-high probability of above-normal temperatures across most of the West, Central and Northern Plains, and Gulf Coast region. Conversely, below-normal temperatures are forecasted for the Midwest, Mid-Atlantic, Northeast, and areas of eastern California and western Great Basin. In terms of precipitation, there is a low-to-moderate probability of above-normal precipitation across most of the conterminous U.S. with exception of areas of the Southwest, Upper Midwest, and New England in proximity to the Great Lakes and Canadian border where below-normal precipitation is expected.




Wednesday, September 3, 2025

Farmer Sentiment Weakens As Producer Confidence In The Future Wanes

Farmer sentiment dipped again in August as the Purdue University-CME Group Ag Economy Barometer Index fell 10 points to 125. Producers were markedly less optimistic about the future in August as the Index of Future Expectations dropped 16 points to 123. This was the lowest reading for the future index since last September. Producers’ perspective on current conditions changed little this month, with a Current Conditions Index reading of 129 versus 127 in July. Sentiment differed widely among producers depending on whether their farm is primarily a crop operation or a livestock operation. Responses from crop producers this month were much less optimistic than those from livestock producers, which indicates the disparity in profitability between crop and livestock enterprises. Beef cattle operations in particular are experiencing record profitability as the smallest cattle inventory since 1951 has pushed cattle prices to record levels. This stands in sharp contrast to returns for crop production which have weakened in 2025. The August barometer survey took place from August 11-15, 2025.


Farmers again reported that they expect weak financial performance for their farms in the year ahead. The Farm Financial Performance Index remained below 100 for the second month in a row with a reading of 91, virtually unchanged from July’s index value. Crop prices that are below many farms’ total cost of production help explain why more farmers expect weaker incomes in the upcoming year than expect incomes to rise. The U.S. Department of Agriculture (USDA) released its August Crop Production and World Agricultural Supply and Demand Estimates during the week the August survey was conducted. The USDA forecasted a 2025/2026 season average corn price of $3.90 per bushel and a soybean price of $10.10 per bushel, both well below estimated breakeven levels for U.S. farmers. Despite the weak income outlook, the Farm Capital Investment Index improved to 61, 8 points higher than in July. Livestock producers this month had a notably more optimistic investment outlook than crop producers, which helped push the index higher.  

Farmers’ outlook for farmland values drifted lower in August compared to July. The Short-Term Farmland Value Expectations Index reading of 112 was 3 points lower than in July. August marked the third month in a row that the index declined. Despite the recent weakness in the farmland index, the index still stands above 100. This indicates that more farmers still look for values to rise in the upcoming year than think a decline in farmland values is likely. Helping to confirm that perspective is the three-fourths of crop producers in this month’s survey who said they expect farmland cash rental rates in 2026 to remain unchanged from 2025. Only 12% of respondents said they expect rates to head lower in 2026.

Every January, the Ag Economy Barometer survey includes questions about farmers’ expectations regarding the size of their farm’s operating loan for the upcoming year and the reasons for the change in operating loan size. The two questions provide insight into the level of financial stress among farms. Given concerns about weak farm income in 2025, the two questions about operating loans were added to the August barometer survey. Twenty-two percent of this month’s respondents said they expect their 2026 operating loan to be larger than in 2025. This was up somewhat from January, when 18% of respondents said they expected their 2025 loan size to increase compared to 2024. In a follow-up question, farmers who said they expected their operating loan size to increase were asked for the reason behind the larger operating loan. Twenty-three percent of farmers in the August survey said it was because they expected to carry over unpaid operating debt from 2025 into 2026. The combination of more farms expecting their loan size to increase, with 23% of those farms expecting to carry over operating debt, suggests that financial stress among farms increased from January to August. Perhaps more importantly, financial stress appears to be noticeably higher than it was in January 2023, when just 5% of farms with larger operating loans attributed that to the need to carry over unpaid operating debt, or January 2024 when 17% of farms with large operating loans said it was because of the same reason.

Wrapping Up

A weaker perspective about the future helped push farmer sentiment down in August as the Ag Economy BarometerIndex declined 10 points to 125. Crop producers were markedly less optimistic about both current conditions and expectations for the future than livestock producers. On average, U.S. farmers expect their farms’ financial performance for the upcoming year to be lower than a year earlier. Although the Short-Term Farmland Value Expectations Indexweakened again in August, more farmers continue to expect values to rise than expect farmland values to weaken. Helping to support the outlook for farmland values is the 75% of crop producers who look for farmland cash rental rates to stay about the same in 2026 as in 2025. Finally, 23% of farmers who expect to increase their operating debt in 2026 cite the need to carry over unpaid operating debt from one year to the next as the reason for the increase. This could be an early signal of an increase in the incidence of farm financial stress in production agriculture.




Tuesday, September 2, 2025

USDA Weekly Crop Progress Report - Corn Rated 69% Good to Excellent, Soybeans 65% Good to Excellent as of Aug. 31

OMAHA (DTN) -- Corn and soybean good-to-excellent condition ratings fell at the national level last week, according to USDA NASS's weekly Crop Progress report released on Tuesday. The report is normally released on Mondays but was delayed this week due to Labor Day.

Cooler temperatures have eased crop stress across the Corn Belt, but limited rainfall and the potential for early frost continue to raise concerns, with scattered showers and a tropical depression possibly bringing more widespread moisture later, according to DTN Ag Meteorologist John Baranick.

CORN

-- Crop development: Corn in the dough stage was estimated at 90%, 1 percentage point ahead of last year's 89% but 1 percentage point behind the five-year average of 91%. Corn dented was estimated at 58%, equal to last year's pace but 2 percentage points behind the five-year average of 60%. Corn mature was pegged at 15%, 3 percentage points behind last year's 18% but 1 percentage point ahead of the five-year average of 14%.

-- Crop condition: NASS estimated that 69% of the crop was in good-to-excellent condition nationwide, down 2 points from the previous week. Nine percent of the crop was rated very poor to poor, up 1 point from the previous week but 3 points below 12% from last year. Nebraska corn was rated 76% good to excellent and Indiana was 61%, both falling 2 percentage points from the previous week. Iowa's good-to-excellent rating remains unchanged from the previous week at 84%.

SOYBEANS

-- Crop development: Soybeans setting pods were estimated at 94%, 1 point ahead of last year's 93% and equal to the five-year average. Soybeans dropping leaves were pegged at 11%, 1 point behind last year's 12% and 1 point ahead of the five-year average of 10%.

-- Crop condition: NASS estimated that 65% of soybeans were in good-to-excellent condition, down 4 points from 69% the previous week and equal to the previous year. Ten percent of soybeans were rated very poor to poor, up 2 percentage points from the previous week and equal to the previous year. Seventy-seven percent of soybeans in Iowa were rated good to excellent, while South Dakota was at 77% too, and Minnesota at 75%.

SPRING WHEAT

-- Harvest progress: Spring wheat harvest picked up speed last week, jumping ahead 19 percentage points to reach 72% complete as of Sunday. That was 5 percentage points ahead of last year's pace of 67% and 1 percentage point ahead the five-year average of 71%. South Dakota was the furthest along in harvest, reaching 91% complete with Minnesota following up at 90%.

THE WEEK AHEAD IN WEATHER

Recent temperature drops have provided some stress relief while lack of rainfall in parts of the Corn Bet continue to pose challenges, with scattered showers and potential frost threats expected later this week, according to DTN Ag Meteorologist John Baranick.

"The cooler temperatures over the last week have been helpful to reduce stress, but some areas across the southern and eastern Corn Belt needed rain and didn't get it," Baranick said.

"A pair of cold fronts will push through the country this week and they'll be bringing some scattered showers, but areas of heavy rain are going to be limited and not widespread like some folks would like to see. Temperatures behind those fronts are going to be quite chilly again this week and we might have a better chance for sneaking in a very early frost across the north. That would be about a month early if we do see it, so that is hard to do. Regardless, temperatures in the 30s will be possible from the Dakotas through Michigan and possibly into Iowa and Illinois as well.

"We'll have to watch the remnants of a tropical depression off the Pacific Coast of Mexico to move through the country this weekend and early next week that could mean more widespread rainfall, but that is a ways out there yet."


National Crop Progress Summary
This Last Last 5-Year
Week Week Year Avg.
Corn Dough 90 83 89 91
Corn Dented 58 44 58 60
Corn Mature 15 7 18 14
Soybeans Setting Pods 94 89 93 94
Soybeans Dropping Leaves 11 4 12 10
Spring Wheat Harvested 72 53 67 71
Cotton Setting Bolls 90 81 94 93
Cotton Bolls Opening 28 20 35 30
Sorghum Headed 94 88 94 94
Sorghum Coloring 58 44 60 59
Sorghum Mature 28 23 29 26
Sorghum Harvested 17 16 19 19
Oats Harvested 88 80 87 89
Barley Harvested 72 56 71 75
Rice Harvested 33 25 42 27

**

National Crop Condition Summary
(VP=Very Poor; P=Poor; F=Fair; G=Good; E=Excellent)
This Week Last Week Last Year
VP P F G E VP P F G E VP P F G E
Corn 3 6 22 50 19 2 6 21 51 20 4 8 23 50 15
Soybeans 3 7 25 51 14 2 6 23 54 15 3 7 25 52 13
Rice 1 3 20 59 17 1 3 22 55 19 1 3 19 62 15
Cotton 2 11 36 43 8 3 10 33 43 11 11 13 32 38 6
Peanuts - 4 25 60 11 - 3 23 62 12 1 6 32 54 7
Sorghum 3 8 25 48 16 3 8 26 47 16 6 13 31 42 8




September Washington D.C. Overview

Quick Fix

 Democrats want to discuss the end-of-September deadline to fund the government, but the Republican caucus doesn't have a plan that unifies their party.

 

— Senate and House lawmakers return today ready to plunge into debate on their respective NDAA bills.

 

— The Fed will make its interest-rate decision in mid-September. Fed Chair Jerome Powell had signaled that the central bank is likely to cut interest rates for the first time since December.

Agriculture

— Skinny farm bill: After Republicans included $60 billion of farm-focused investments in their “One Big Beautiful Bill,” lawmakers are hoping to come to the table to pass a “skinny” version of a traditional five-year farm bill with crucial policies for agriculture, nutrition, energy, rural development and more.

 

House Agriculture Chair G.T. Thompson (R-Pa.) said he was aiming to mark up and advance a farm bill out of committee in September, though that timeline is still up in the air.

 

The package will include fewer of Democrats’ red lines that stalled negotiations last year, given that Republicans already passed major cuts and rollbacks to nutrition and conservation spending in their megalaw.

 

Still, some points of contention remain, including a potential fix to state-level animal rights law like California’s Proposition 12, how to address the hemp regulatory loophole that was created in the 2018 farm bill and any language related to pesticide use and liability.

 

— Make way for MAHA: The Trump administration’s “Make America Healthy Again” Commission is looking to finalize a list of policy recommendations that MAHA leaders say will help overhaul the U.S. food supply and decrease diet-related illness and disease, especially in children.

 

The panel’s draft recommendations avoided a crackdown on commonly used pesticides, assuaging agriculture lobbyists’ fears. They also listed some food policy changes that Health and Human Services Secretary Robert F. Kennedy Jr. had already publicly promised to make, like changing the Food and Drug Administration’s “generally recognized as safe” classification and investigating certain food additives and ingredients.

 

— Grim reaping: Farmers and agriculture groups that have been patient with Trump’s tariff rollout are feeling extra heat as producers of top U.S. agricultural exports prepare for record-high harvests. Unless the Trump administration can deliver new trade opportunities it has promised, farmers could be left with too much supply and too little return for their commodities like soy, corn and grains. — Grace Yarrow

Trade

— Tariff Negotiations: After months of delays, Trump imposed his threatened “reciprocal” tariffs on dozens of countries in early August. The trade haggling, however, is not over.

 

The Trump administration continues to negotiate with leading trade partners including the European Union, Japan and South Korea on final details of the preliminary agreements they reached at the end of July. As part of those agreements, the administration set tariff rates at 15 percent, including on key sectors like autos. But Trump has moved slowly to cut the 25 percent tariff on car exports from those countries, to their frustration.

 

— In the details: The administration completed a joint statement with the EU to enshrine details of their broader trade agreement, but has yet to unveil similar statements with Japan and South Korea. The EU on Thursday proposed new legislation to eliminate tariffs on U.S. industrial goods, a precondition for Trump to drop tariffs on European cars

 

The administration also extended the deadline for talks on a comprehensive trade deal with China — from Aug. 12 to Nov. 10. The Chinese government’s top trade negotiator, Li Chenggang, was in both Ottawa and Washington last week for talks.

 

Negotiations are also ongoing with Canada, which Trump hit with a 35 percent tariff earlier this month, and are likely to bleed into the 2026 review of the U.S.-Mexico-Canada Agreement that Trump negotiated in his first term. — Ari Hawkins, Camille Gjis, Antonia Zimmerman, Zi-Ann Lum

Transportation

— Progress: In the waning days of August, DOT Secretary Sean Duffy announced that his agency had finally opened solicitations for what the department is calling an “integrator” contract. The idea is to have one company that will manage the administration’s ambitious vision to completely rebuild the nation’s air traffic control systems before President Donald Trump leaves office. This could include telecommunications upgrades, radar replacements and even facilities consolidation among others. Solicitations are due by Sept. 21.

 

— Gridlock: But the end of September seems less rosy when considering the state of Congress as a potential government shutdown threat looms by month’s end. Democrats have been pressing for meetings, but the Republican caucus is divided on the best path forward. Senate GOP leaders have floated a short-term patch, but much remains unclear. — Kathryn A. Wolfe

Defense

— Defense bills ready for action: The House and Senate return from their lengthy summer recesses today ready to plunge into debate on their defense policy bills.

 

The Senate will take a procedural vote to advance its version of the National Defense Authorization Act. Republicans will need Democrats’ support to clear the initial hurdle, making this vote an early sign of any bipartisan support. Passage of the bill will hinge on whether both parties strike a deal to vote on amendments. Resistance from just a few senators has tanked efforts to pass the bill in past years, a roadblock Senate Majority Leader John Thune and Armed Services Chair Roger Wicker are trying to avoid.

 

House lawmakers, meanwhile, will go to work next week on their own defense policy bill. Lawmakers already have filed hundreds of amendments. The House Rules Committee will sift through those proposals ahead of floor debate.

 

 DC crackdown: Trump’s decision to call up the DC National Guard and federalize the city’s police force could weigh heavily on the NDAA deliberations. Washington, D.C., Del. Eleanor Holmes Norton and Maryland Sen. Chris Van Hollen plan to introduce legislation to undercut Trump by granting the city control over its Guard and police. They’re hoping to insert the measure into the defense bill. But the proposal is likely a non-starter for Republicans, who could block it from even receiving a vote. — Connor O’Brien

Financial Services

— Fed meeting: The Federal Reserve's interest rate-setting meeting this month is poised to be one of the most eventful in modern history. Chair Jerome Powell signaled that the central bank is likely to cut interest rates for the first time since December, citing fears of a weakening job market. The Trump administration is angling for the Senate to confirm White House chief economist Stephen Miran to an open seat on the Fed board by the time of the meeting, giving the president a particularly sympathetic voice on the central bank. And Trump has moved to fire board member Lisa Cook, who has filed a lawsuit to keep her job, and it is unclear whether she will participate in the meeting.

 

— Economy: The economy is at a critical inflection point. Recent labor market data suggests that employers have slowed down hiring and many economists anticipate that economic growth will diminish as Trump’s tariffs stifle trade. Recent consumer price data indicates that the new levies on imports have started to push up prices. If September's economic reports reflect higher inflation and weaker employment, the economy could soon encounter stagflation — a politically toxic combination of low growth and higher prices.

 

— Congressional agenda: The Senate Banking Committee is expected to hold Miran’s Fed board nomination this week. The Senate also takes up the National Defense Authorization Act, with more than 600 intended amendments, including several on banking, the CDFI Fund, cryptocurrency, the FDIC and small business. And Senate Republicans hope to advance a crypto market structure bill.

 

The House Financial Services Committee will hold hearings on the Financial Crimes Enforcement Network, the banking sector funding access, terrorism risk insurance, Fed independence, financial threats and artificial intelligence in the financial system.

 

— CFPB moves to curtail its authority: The Trump administration set deadlines later this month for the financial industry and public to weigh in on proposals that would rein in the Consumer Financial Protection Bureau’s oversight. Trump appointees and congressional Republicans have already pared back the bureau’s operations and reduced its funding. But the latest proposals would further narrow the CFPB’s powers to oversee parts of the financial sector.

 

— CFTC: Wall Street is hoping to learn the fate of Trump’s nominee to lead the Commodity Futures Trading Commission. Brian Quintenz, a former commissioner at the agency, appeared to be on a glidepath toward confirmation as the top U.S. derivatives regulator earlier this year. But the White House delayed a procedural vote on his nomination following 11th-hour concerns from cryptocurrency billionaires Tyler and Cameron Winklevoss. Now, with crypto legislation front of mind for many on Capitol Hill, some lobbyists expect that filling the CFTC’s top seat will take priority. — Victoria Guida, Sam Sutton, Katherine Hapgood and Michael Stratford

Tax

— Fine print: The tax world’s focus in Washington has shifted to the administration, with many now eager to see what Treasury has in mind when it comes to filling in the details of Republicans’ new tax law.

 

The agency needs to churn out a slew of guidance and it’s beginning by focusing on provisions that take effect this year, so that people can claim them on their returns in the spring. That includes new breaks for seniors, auto-loan interest, tips and overtime.

 

But it’s not just the regulatory guidance people are looking for. The administration needs to pick a new head of the IRS after pushing out Billy Long, who is now nominated to be ambassador to Iceland. Treasury Secretary Scott Bessent is serving as acting commissioner in the interim, even though there’s supposed to be a clear distinction between the more policy-oriented Treasury and the studiously neutral tax administrators at the IRS.

 

— Rehires: Meantime, Donald Korb, who was chief counsel at the IRS during the George W. Bush administration, is waiting for the Senate Finance Committee to take up his nomination for a second go-around as the department’s top lawyer. At the same time, the agency wants to bring back some of the employees it had pushed out as part of the waves of DOGE-led staff cuts. And looming above it all is next year’s filing season, when many will be watching closely to see what all the turmoil and budget cutting at the agency means when millions file their returns.

 

It’s worth still keeping an eye on Congress for signs that lawmakers might be willing to move a bipartisan tax package at the end of the year. The odds appear long at the moment, but a bipartisan push to rescind new restrictions on new gambling-loss deductions — which could leave some gamblers owing taxes even when they don’t make any money — could potentially prompt lawmakers to act. — Brian Faler

Energy

— Congress digs into energy approps and permitting: As soon as it returns after Labor Day, the House is set to take up its Energy and Water spending bill, which would make deep cuts to renewable energy programs at DOE in favor of nuclear energy and other GOP priorities. But Republicans will need to temper the bill to gain the support of Democrats in the Senate, where appropriators have yet to introduce their Energy-Water bill amid intra-GOP disagreement over toplines.

Catherine Allen/POLITICO

The larger energy fight looming on the horizon is another push for permitting reform, which House GOP leaders have indicated will be at the top of their agenda this fall. There’s already a new bipartisan proposal on the table, but Democrats could be loath to back the new effort amid the Trump administration’s recent crackdown on wind and solar projects.

 

Congress is also facing deadlines on Sept. 30 and Oct. 6 to reauthorize the Defense Production Act and Development Finance Corporation, respectively. Both parties have utilized those tools to back energy and critical minerals projects at home and abroad.

 

The Senate is also considering the nominations of Laura Swett and David LaCerte to the Federal Regulatory Energy Regulatory Commission and Ho Nieh to the Nuclear Regulatory Commission as the Trump administration moves to exert control over those independent agencies. — James Bikales

Employment and Immigration

— BLS shakeup: Economists have grown increasingly concerned about potential problems with the quality and reliability of data from the Bureau of Labor Statistics in the wake of Trump's firing of Commissioner Erika McEntarfer after a weak monthly jobs report.

 

E.J. Antoni, the Heritage Foundation economist Trump tapped to replace McEntarfer, has done little to assuage those concerns, and he alarmed some experts by proposing a shift to quarterly reports.

 

Trump and Republicans seized on the agency’s data revisions during the Biden administration in calling for changes, despite concerns that changing the timing of those closely watched figures could negatively affect businesses’ ability to make informed decisions.

 

Antoni’s path to confirmation could be complicated by questions from Senate HELP Committee members and other lawmakers about his plans for ensuring BLS economic releases are free of political bias and the views he has expressed as a fixture on conservative talk shows and podcasts.

 

 Workforce development: The Trump administration’s vision for workforce development is coming into clearer focus with the Labor Department’s unveiling new plans for training workers.

 

DOL is partnering with the departments of Commerce and Education to strengthen federal workforce development efforts as Labor Secretary Lori Chavez-DeRemer stresses the administration’s goal of having 1 million active apprentices.

 

The three departments plan to collaborate in developing plans to train workers in artificial intelligence and loosen existing standards for job training programs.

 

— Reg watch: Industry and labor groups are filing comment letters on a batch of rules that DOL released in July, taking opposite positions on a proposal to ease financial disclosure requirements for unions.

 

Business groups argue that the department’s attempt to update revenue reporting requirements to account for inflation will reduce transparency in how unions manage members’ finances. Labor organizations have sided with the Trump administration in contending that the fix is much-needed. — Lawrence Ukenye

Education

 Funding: The biggest agenda item on education issues as lawmakers return to Washington this week is spending. Republicans in both chambers are advancing bills with higher funding levels for education programs than Trump is requesting for fiscal 2026 just as the legislative sprint to the end of the fiscal year may end up in a government shutdown. There’s also a lot of attention on what remaining fiscal 2025 money the administration may — or may not — spend before Oct. 1.

 

— Appro. bills: Congress is all but certain to consider a stopgap funding measure, but both chambers are advancing individual spending bills. The House Appropriations Committee is expected to unveil and mark up the bill to fund the Education Department for fiscal 2026 early this month, having delayed consideration of the Labor-HHS-Education bill until after Labor Day. House Republicans have proposed funding the departments of Education, Labor, Health and Human Services and related agencies at over $184 billion. In the upper chamber, Senate Majority Leader John Thune has said he is considering bringing the Labor-H bill to the floor packaged with the Defense Department spending bill, after the Appropriations Committee advanced a bipartisan bill to fund education programs before lawmakers left town.

 

— Grant disbursement: Whether the Trump administration will dole out grant funding for Hispanic-serving institutions remains to be seen after the Justice Department said it would not defend the program in court. Advocates say the roughly $350 million appropriated for fiscal 2025 hasn’t yet been sent out to colleges who are competing for the funds. There is also concern about what the DOJ’s move could mean for the future of the program, especially as lawmakers begin shaping their latest appropriations bills.

 

— Return to work? Dozens of laid-off employees from the Education Department’s Office for Civil Rights were on track to return to work in September after being placed on administrative leave as part of a department reduction-in-force plan. But they and their colleagues have continued to receive their salaries and benefits at a cost of nearly $1 million per week.

 

Plans to reinstate the civil rights workers stem from a lawsuit filed before a Massachusetts federal judge by an organization for survivors of sexual violence, parents and children with civil rights cases pending before the department. But the Trump administration is contesting the judge’s order to reinstate the workers. It’s now up to the U.S. Court of Appeals for the 1st Circuit to decide whether the department must stick to the court-ordered return-to-work plan, or if the Trump administration presses the Supreme Court to weigh in and let the civil rights layoffs take hold.

 

— Student loan collections: The Education Department said it would begin wage garnishment on defaulted student loan borrowers late this summer, when it first announced it would resume collection. But the agency has not yet posted a specific date. The Federal Student Aid website provides an even more vague timeline, stating garnishment would start “later in 2025.” About 5.3 million borrowers were in default at the end of the third quarter in 2025. — Mackenzie Wilkes, Rebecca Carballo, Bianca Quilantan, Juan Perez

Health Care

— The extenders: Lawmakers are under pressure to pass several health extenders, chief among them for so-called telehealth flexibilities — easing of telehealth rules during the pandemic — and funding for community health centers. It’s possible that other health-related items could be included in an extenders package to offset the cost, including price transparency reforms for pharmacy benefit managers.

 

But congressional Democrats are still angry that a similar package was jettisoned by House GOP leaders last year after objections from Trump and his DOGE leader, billionaire Elon Musk.

 

— ACA Subsidies: The thorniest potential extender is for the enhanced subsidies for the Affordable Care Act that are scheduled to expire at year’s end. Democrats will want to include them in any bipartisan talks. Republicans aren’t showing their cards, but they are considering the political ramifications of allowing the subsidies to expire. They are under heavy pressure from health industry groups, from hospitals to insurers, to extend them.

 

Right now, it’s unclear whether Republicans will pursue another partisan continuing resolution to keep the government open after Sept. 30 in the absence of a broader deal with Democrats on fiscal 2026 spending. Senate Democrats helped pass a CR in March despite criticism from progressives. Senate Minority Leader Chuck Schumer took a major hit from his left, which will oppose any repeat. — Health Care Pro

Technology

— GOVERNMENT CONTINUES TO GRAPPLE WITH AI: A handful of senators will try to push forward different standards to regulate AI companies once Congress returns. Among them, Sen. Ted Cruz (R-Texas.) wants to grant tech companies regulatory waivers as they experiment with AI, and Sen. Josh Hawley (R-Mo.) wants tech companies to face legal liability for violating copyright protections when training their AI models. Any regulations will come as the AI industry beefs up its presence in D.C.

 

Meanwhile, prompted by the Trump White House’s AI Action Plan, federal agencies are pulling out all stops to ensure AI adoption in the government. Companies like OpenAI and Anthropic are already pricing their models at $1 per agency for the first year, in a bid to get their technology embedded first.

 

— ATTENTION PIVOTS ON $42B BROADBAND PROGRAM: States and territories have until Sept. 4 to submit their applications to get a piece of the $42.45 billion Broadband Equity, Access and Deployment program. All eyes will then shift to the Commerce Department, which will either approve the requests or press for changes.

 

This is the latest chapter in a long saga for BEAD, which contains money from the 2021 infrastructure law. Commerce Secretary Howard Lutnick set off this reapplication process in June when he unveiled new rules aimed at shedding certain Biden administration requirements around climate resiliency and affordability, among other issues. The revamp was also meant to boost cost effectiveness and required states to hold another bidding round with internet service providers — a change that could mean more money flowing to novel technologies like satellite (including the Starlink service run by Elon Musk).

 

Some states are already proposing far greater shares of money going to satellite, but Starlink has complained some are not adopting enough satellite services. It’ll be up to Lutnick and others at the department to decide what passes muster. Lutnick wants to get money out to states by the end of the year.

Cybersecurity

— Pending Cyber Bills: Returning from August recess, Congress will need to address several major cyber policy measures as it works to renew key pieces of legislation and approve the fiscal 2026 appropriations before the Sept. 30 deadline.

 

Lawmakers are prioritizing the renewal of the 2015 Cybersecurity Information Sharing Act, a foundational law that facilitates cyber threat sharing between the private sector and the federal government. While there has been no significant opposition on the Hill to keeping the law in force, Senate Homeland Security Chair Rand Paul (R-Ky.) vowed not to approve a renewal unless new language is added to block the Cybersecurity and Infrastructure Security Agency from conducting work to counter online disinformation.

 

Other lawmakers have argued in favor of passing a 10-year extension of the existing bill language to ensure there is no lapse in the critical threat-sharing authorities it provides. They are concerned that including any changes will slow down the bill’s passage.

 

The State and Local Cybersecurity Grant Program is also due to expire at the end of the month. The law has given states and localities $1 billion over multiple years to boost cybersecurity at often underfunded government offices. Paul may try to attach the clause ending disinformation work at CISA to the bill as part of its reauthorization, which could slow down the process.

 

Congress is also racing to approve appropriations packages for the 2026 financial year, which includes funds for CISA, the Pentagon’s cyber efforts, the State Department and many other cyber-focused agencies. Trump’s original proposed budget for CISA would slash almost $500 million as compared to the agency’s most recent budget, but lawmakers in the House have proposed a much smaller cut.

 

— Outstanding Appointments: Two key cyber policy nominations are still pending in the Senate: Katie Sutton to serve as assistant secretary of Defense for cyber policy and Sean Plankey to lead the Cybersecurity and Infrastructure Security Agency.

 

While Sutton’s nomination is likely to sail through the Senate in the coming weeks, Plankey’s nomination is currently blocked from a vote by Sen. Ron Wyden (D-Ore.) until CISA makes public a report on U.S. telecommunications vulnerabilities. Before leaving for recess, the Senate unanimously approved a bill backed by Wyden that would force CISA to release the report. The timing for when the House will take up the measure is unclear. — Maggie Miller




This Week's Drought Summary (9/11)

Abnormal dryness (D0) and short-term moderate (D1) to severe (D2) drought continued to expand across the Lower to Middle Mississippi Valley,...