Expanded Access to H-2A Workers, A Look at Heifer Retention, Weather-Impacted Grain Markets

Today we start with information on expanded access to H-2A workers for dairy farmers, and information on what lower heifer share of marketed animals means for herd expansion. We then look at how to adjust for weather-impacted crop markets, and finish up with an article on which stocks analysts predict will deliver returns. 

Transcript

SPEAKER_00 0:11

Hello and welcome to Chappy DC. Here's the top story from Black Deart Daily today, which is Monday, July 5th, 2026. Hope everybody had a happy and safe July 4th weekend. Happy birthday, America. Today we're going to focus on new legislation expanding access to H2A workers. How a drop in heifer share doesn't necessarily indicate herd expansion, how to leverage weather-driven markets, and analysts prefer these stocks. So let's get to it. The Securing Agriculture's Workforce Act was introduced in the House on June 30th, led by House Ag Committee Chair Glenn G.T. Thompson. Legislation would modernize agricultural workforce policy by updating the H2A visa program and expanding access beyond seasonal workers. National Milk Producer Federation president and CEO Greg Dowd said in a statement that the bill finally grants dairy access to H2A by removing the seasonal requirements of the program and allowing contracts up to 350 days of the year. Perhaps the most important provision of the bill for dairy beyond providing access is the targeted mechanism to provide the current dairy workforce a means to transition to a workable visa program. This will ensure that we don't for face a workforce disruption following during the transition. Some of the key provisions include replacing the restrictive seasonal standard with a broader temporary labor standard that better accommodates year-round agriculture, expanding access to legal agricultural workers, bringing greater certainty to the adverse effect wage rate, modernizing the H2A application process through a one-step online portal, and protecting the experienced agriculture employees and their employers during the transition into the H2A program. Moving over to livestock markets, USDA AMS reports the National Feeder and Stocker Cattle Summary each week, which includes weekly receipt data. The chart shows a 48-week moving average, roughly one year of data for steer and heifer receipts. Steer and heifer receipts have trended lower over most of the past decade, consistent with smaller calf crops since 2019. However, the share of heifers has declined over the past few years, averaging about 39% in the past year, compared to 41 to 42 percent from 2022 to 2024. On the surface, that could suggest a move towards some retention efforts, but there are some key points to consider. First, the number of steers sold has ticked higher recently, while the number of heifers sold has been relatively flat. The decline in heifer percentage in 2026 is partially driven by the larger steer sales and not a decline in heifers sold. Second, the declining heifer share could indicate some efforts to increase heifer retention from the very low levels in recent years. However, the percentage is not yet at a level that would indicate herd expansion. The average percentage of heifers in the data set during the beginning of the last herd expansion in 2014 was about 37%, and the average in 2015 was 36%. By this metric, we're not yet in a 2014-2015 environment. Quick look at crop markets. USDA released its acreage and stocks report last week, and while that presented a mixed bag of bullish and bearish data, prices responded positively later in the week. But does that rally have room to grow later in July? Fireworks could be in store if overly hot conditions hold later this month. Some of the experts we consulted this week are optimistic that there will be a handful of pricing opportunities this fall. Still, there are plenty of nuances to navigate in what has been a volatile market so far in 2026. Is the corn market desperately trying to find a bottom? Soybean pricers are seeing some resiliency despite some market challenges. Plus, take a look at the telltale sign why the market is getting worried about future wheat supplies. If you want more information and uh want to read the full article, uh check out the article on farmprogress.com and we also have a link on BlackDartDaily.com. Let's wrap up with a quick look at financial markets. Dividend stocks remain a popular choice for investors seeking steady income and higher portfolio returns. However, with thousands of dividend-paying companies to choose from, identifying the right stocks can be challenging. In this regard, recommendations from top Wall Street analysts can provide useful insights and help identify dividend stocks backed by solid fundamentals and with attractive upside potential. There's an article on cnbc.com that features three dividend paying stocks that are highlighted by Wall Street's top pros. Here's a link to the article available on today's BlackDirtDaily.com if you want to check out that uh information. Well, that's all for now. As always, thanks for tuning in to Chat BDC. If you found it useful, leave a comment, subscribe, share, and tell all your friends. Be sure to check out blackdirtdaily.com for the full stories behind new topics. Don't forget to sign up for that Black Dirt Daily newsletter. We'll be back tomorrow with more business news across the idiots.