News

McHargue says trade agreements, biofuels expansion helps improve margins

The president of a state farm bureau organization says cost of production for the 2025 crop year is one of his top concerns.

Mark McHargue of Nebraska tells Brownfield, “We really need probably more than even $0.50 put on these markets. We probably need $0.75 to a dollar put on these markets to really get some profitability.”

McHargue says improving trade tensions with China sooner rather than later will help.  “We’re going to have to have some things figured out by fall. I think by late summer, early fall, if things don’t turn around and we can’t get something in place for this marketing year, I think it’s going to be tough.”

During a briefing at the White House on Tuesday, Press Secretary Karoline Leavitt said the administration is setting the stage for a deal with China and the “ball is moving in the right direction.”

And, McHargue says, other opportunities could improve margins. “If we get year-round E15, we get other countries come in on some trade deals and we continue to work on potential SAF plants, I really feel like we could turn this thing around fairly quickly and we could be in a really good spot.”

He said a lot will also depend on weather and drought conditions across the US Corn Belt.