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Day Lila

Sunday, 4 October 2026

4 Oct · Food · In brief

Food · Sunday, 4 October 2026

Food, in brief

12 stories · 18 sources

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What is moving · 1 of 4

Too much rain, or too little

High ↑

Parts of Brazil's sugar-growing region had their wettest winter in more than 100 years, so the cane holds less sugar. [8] In England, September brought 65% of the usual rain, and Wimbleball reservoir in Somerset is 21% full. [12] Anglian Water, which supplies the East of England, says the dry spell could last into 2027. [13]

What is moving · 2 of 4

Diesel and other farm costs

High ↑

Diesel in four US Midwest states cost more than $3 a gallon above a year ago in September, as the harvest began. [11] Across the US, what farmers paid in August for supplies, wages and interest was 5.3% higher than a year earlier. [10]

What is moving · 3 of 4

Paying farmers to protect land

Building ↑

Brazil's big soy and beef exporters defend the rule that Amazon landowners keep 80% of their forest, because buyers abroad avoid cleared land. [1] England's farm nature scheme shut to new applications in under six hours. [14] A new flat fee for house builders could undercut farmers who sell clean-water credits. [15]

What is moving · 4 of 4

Taxes on farm trade

High ↑

China began charging an extra 55% on Brazilian beef above Brazil's yearly allowance on 1 October. [7] The US government put 50% tariffs on Brazilian goods last year. [6]

Part of the day's signal

One pressure seen across the day runs through Food too.

Brazil votes on Sunday in a near-tie between Lula and Flavio Bolsonaro. The winner sets the rules on clearing the Amazon for cattle and soy

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Brazil chooses its president on Sunday 4 October, and almost 159 million people can vote. [2]

Who is involved

Who is involved

Why it matters

Brazil counts its electronic votes within hours, so Sunday night shows whether there is a run-off. [5]

Why it matters

If there is, watch whether Flavio Bolsonaro says before 25 October if he would keep fines for clearing seen by satellite. [1]

What's really going on

Brazil's vote on Sunday decides who enforces the rules on clearing the Amazon.

What's really going on

Brazil's big soy and beef exporters have defended those rules, because buyers abroad are wary of food from cleared land. [1]

What's really going on

Smaller producers with no buyers abroad still push for more clearing. [1] Flavio Bolsonaro has campaigned across the Amazon on promises to loosen the environmental rules. [1]

Why it works on people

A promise to end illegal clearing sounds strict. But a Brazilian president who makes it also helps write the law that decides which clearing is illegal. [1]

Who gains

Strict rules on clearing protect their standing with buyers abroad, which is why they helped stop a 2019 bill to scrap the 80% rule. [1]

Nobody knows yet

Who wins, and whether there is a run-off.

Polls put both men near 40%, and about 9% of voters were undecided or not planning a valid vote at the end of September. [3] Polls survey a few thousand people out of almost 160 million voters. [3]

Nobody knows yet

Whether Flavio Bolsonaro would keep fines for clearing seen only by satellite.

Lula restored the fines in 2023, and the farm caucus backs a bill to weaken them. [1] Bolsonaro did not say whether he would keep them. [1]

Good news

Satellite data show that the area of the Amazon cleared in the first half of 2026 was the smallest in ten years.

Part of a signal

Votes deciding homes and forests

Also seen in World and Money.

The whole signal →

The short version

That's the story in short.

The whole story has 13 more parts.

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The whole story, in 13 parts ↓

Part 1 of 13 · Who else is involved

Part 1 of 13 · Who else is involved

Part 2 of 13 · How it unfolded

Part 3 of 13

The front-runners are President Luiz Inacio Lula da Silva, 80, on the left, and Senator Flavio Bolsonaro, 45, on the right. [2]

Part 4 of 13

Flavio is the eldest son of Jair Bolsonaro, the former president now serving a 27-year sentence for a failed coup plot. [4]

Part 5 of 13

Polls put both men at about 40%, with Lula slightly ahead, so a run-off on 25 October is likely. [3]

Part 6 of 13

Brazil holds about 60% of the Amazon, the world's largest rainforest. [1]

Part 7 of 13

Clearing of the Amazon rose about 60% under Jair Bolsonaro, from 2019 to 2022, and more than 45,000 square kilometres were cut. [1]

Part 8 of 13

Under Lula it has fallen 45%, to its lowest level in more than a decade. [1]

Part 9 of 13

Flavio Bolsonaro promises to end illegal clearing by 2029. [1]

Part 9 of 13

Lula aims for zero net clearing by 2030, so any forest cut would have to be grown back elsewhere. [1]

Part 10 of 13

Experts warn he could keep that promise while making more clearing legal. [1]

Part 10 of 13

At a rally in June he promised easier licences for farming, cattle ranching and mining. [1]

Part 11 of 13

He has courted farmers and says he will cut rules to get the state off farmers' backs. [3]

Part 12 of 13

In 2019 Flavio Bolsonaro co-sponsored a bill to end the rule that Amazon landowners keep 80% of their native plants. [1]

Part 12 of 13

Farm business leaders opposed it, fearing buyers abroad would turn away from Brazilian soy and beef, and it was dropped. [1]

Part 13 of 13

Brazil also elects all 513 members of its lower house and 54 of its 81 senators. [2]

Part 13 of 13

Farm business holds much sway in that Congress. [1]

China's 55% beef tax hits Brazil

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From 1 October, China charges an extra 55% tariff on Brazilian beef, on top of its usual rate, its commerce ministry said. [7]

In January China gave each big supplier a yearly allowance and set the 55% charge on beef above it. [7]

Brazil's allowance was 1.1 million tonnes, and China is the biggest buyer of its beef. [7] Brazil asked to use Uruguay's unused allowance, but industry insiders say China has not agreed. [7]

Why it matters

Abiec, the group for Brazil's beef exporters, expects Brazil's beef exports to fall 10% this year. [7]

Why it matters

Whoever wins Sunday's vote inherits the wait to see whether China renews the allowances for 2027. [7]

Who pays

Beef sent to China above Brazil's allowance now pays an extra 55%, and Brazil's beef exports are expected to fall 10% this year. [7]

Nobody knows yet

Whether China renews its beef allowances for 2027.

Industry insiders say China has not agreed to let Brazil use Uruguay's unused share, and China's commerce ministry has not commented on Brazil's requests. [7]

Wet cane holds back Brazil's sugar

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Brazil's sugar mills will let the weather, not the price, decide how much sugar they make until the harvest ends in December, analysts told Reuters. [8]

Brazil is the world's largest sugar producer, and its mills can turn cane into sugar or into ethanol, a fuel. [8]

Sugar prices rose more than 21% in August, and sugar now pays about 20% more than ethanol. [8]

But parts of the sugar belt had the wettest winter in more than 100 years, and wet cane holds less sugar. [8]

Why it matters

Each extra percentage point of cane sent to sugar adds about 750,000 tonnes to world supply, so buyers everywhere watch the choice. [8]

Why it matters

StoneX, a broker, now expects Brazil's main region to make no more than 38 million tonnes, below the 40 million first expected. [8]

How it works

Why a higher price does not always bring more sugar

How it works

A higher price brings more sugar, water or diesel only when the missing thing is for sale, and dry fields, full rivers and a sea port are not.

How it works · step 1 of 5

Something runs short, and its price goes up

How it works · step 2 of 5

Usually a higher price brings more: mills switch, traders ship more in

How it works · step 3 of 5

But sometimes the missing piece cannot be bought: sugar in wet cane, water in a low river, a way to ship fuel in

How it works · step 4 of 5

Then the supply stays low and the price stays high

How it works · step 5 of 5

It eases only when the weather turns or something new is built

The twist

A higher price brings more of something only if what is missing can be bought, and the weather cannot be bought.

The picture

How full three of England's reservoirs are, against about 74% in a usual early October. They fill with rain, and six months of this year have had less rain than usual.

Seen the same day

Wet cane holds back Brazil's sugar

Sugar pays about 20% more than ethanol, but wet cane holds too little sugar, so the mills keep making ethanol.

Seen the same day

Midwest diesel jumps as the harvest starts

Diesel costs $3 a gallon more, but the Midwest cannot easily bring fuel in by tanker, so extra fuel cannot be shipped in quickly.

Seen the same day

England lets farmers refill reservoirs in October

Farmers may now fill reservoirs in October, but only where rivers still run, and Anglian Water cannot take water from some of its low rivers.

The catch

Over years, a high price can pay for the missing piece, such as the two new reservoirs Anglian Water plans.

The whole

A sugar buyer waits for Brazil's cane fields to dry out.

The whole

A farmer in Indiana waits on two refineries in Illinois and Indiana, and a family under a hosepipe ban in eastern England waits on a wet winter.

The whole

Each of them sees only their own bill.

Who gains

Wet cane is better suited to ethanol, so mills keep sending more cane to the fuel even though sugar pays more. [8]

Who pays

Sugar rose more than 21% in August. [8] Brazil's mills cannot send more cane to sugar while it is this wet, so no extra sugar arrives to bring it down. [8]

Nobody knows yet

How much sugar Brazil's main region will make this season.

StoneX now sees no more than 38 million tonnes, below the 40 million expected at the start, and more rain is forecast. [8]

US corn stores 35% fuller than last year

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Change in US grain held in store on 1 September, against a year earlier.

The US held 2.10 billion bushels of last year's corn on 1 September, 35% more than a year earlier, the US agriculture department's statistics service said on 30 September. [9]

Corn stored off farms rose 44%. [9] Stored soybeans were down 3%. [9]

All wheat in store fell 14%, and wheat held on farms fell 21%. [9]

Why it matters

The count lands as US Midwest farmers start harvesting an estimated 20 billion bushels of corn and soybeans by the end of November. [11]

Why it matters

So the new corn arrives on top of a bigger pile of old corn, while wheat is the crop in shorter supply. [9]

US farm costs rise as farm prices fall

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In August, US farmers were paid 2.0% less for what they sold than a year earlier, the statistics service said on 29 September. [10]

Change from August 2025 to August 2026. What farmers earned fell while what they spent rose, so the gap between the two widened.

What they paid for supplies, interest, taxes and wages was 5.3% higher. [10]

From July to August, diesel, hay and animal feed got dearer, while nitrogen fertiliser and young cattle got cheaper. [10]

The ratio between the two measures fell to 85, from 91 a year before. [10]

Why it matters

Livestock prices were 8.5% lower than a year ago, while crop prices were 6.2% higher. [10]

Why it matters

So the fall in income lands on cattle, pig and dairy farms more than on grain farms. [10]

Who pays

Livestock prices were 8.5% lower in August than a year earlier, while the costs of running a farm were 5.3% higher. [10]

Midwest diesel jumps as the harvest starts

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In September, four of the five US states where diesel rose most were in the Midwest: Illinois, Michigan, Ohio and Indiana. [11]

There it cost more than $3 a gallon above a year ago. [11] A flood and a power cut shut ExxonMobil's refinery at Joliet, Illinois, for over a week. [11]

A six-month union dispute also continues at BP's Whiting refinery in Indiana. [11]

The Midwest has few refineries and cannot easily bring in fuel by tanker, so it struggles to replace what is lost. [11]

Why it matters

Estimates say the dearer fuel adds about $12,500 to the cost of harvesting every 1,000 acres. [11]

Why it matters

Joe Hamilton, who farms 2,500 acres in Indiana, expects to burn about 9,000 gallons of diesel in this harvest. [11]

How it works

Midwest diesel jumps as the harvest starts

Diesel costs $3 a gallon more, but the Midwest cannot easily bring fuel in by tanker, so extra fuel cannot be shipped in quickly.

The idea, in story 3: Why a higher price does not always bring more sugar →

Who pays

Dearer diesel adds about 12,500 dollars to the cost of harvesting every 1,000 acres, as two refineries in the region are disrupted. [11]

England lets farmers refill reservoirs in October

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England's Environment Agency, which licenses who may take water from rivers, will let farmers with winter licences refill their reservoirs from 1 to 31 October. [12]

Reservoirs in England are usually about 74% full now, but Ardingly in West Sussex is at 23% and Wimbleball in Somerset at 21%. [12] September brought 65% of the usual rain. [12]

The window does not cover the main salmon rivers or places where spray irrigation is already restricted. [12]

Why it matters

Anglian Water, which supplies about seven million people in the East of England, warned on 2 October that the drought could last into 2027. [13]

Why it matters

Its Grafham Water reservoir is 60% full, and some rivers it pumps from are too low to use. [13]

How it works

England lets farmers refill reservoirs in October

Farmers may now fill reservoirs in October, but only where rivers still run, and Anglian Water cannot take water from some of its low rivers.

The idea, in story 3: Why a higher price does not always bring more sugar →

Who gains

They may refill their reservoirs throughout October, outside their usual season. [12]

Nobody knows yet

How long England's drought lasts.

Anglian Water says it is hard to tell, and that it may run into next year. [13] Its Grafham Water reservoir is 60% full. [13]

Good news

Farmers in England with winter water licences may refill their reservoirs throughout October, and applying for a longer licence no longer needs long environmental and economic reports.

MPs survey farmers after a fund shut in hours

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A committee of British MPs has opened a survey of farmers about the Sustainable Farming Incentive, England's scheme that pays farmers for work such as caring for hedges and soil. [14]

Its second round of applications closed in less than six hours, on a first come, first served basis. [14]

About 12,200 applications went in, worth about 20,700 pounds each on average, from a pot of 253 million pounds. [14] The survey closes on 16 October. [14]

Why it matters

About 21,300 farm businesses have nature agreements ending by February 2027, but only about 8,800 of them applied, the consultancy GSC Grays says. [14]

Why it matters

It warns that land now kept for wildlife and soil could go back to more intensive farming. [14]

Who pays

About 12,500 of them did not apply before the scheme shut, so their payments for wildlife and soil work end when those agreements run out. [14]

Nobody knows yet

What replaces first come, first served in England's farm nature scheme.

Defra, England's farm ministry, says it is exploring other ways to run the scheme in 2027, but has not said which. [14]

A flat fee threatens farmers' clean-water credits

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England's first Environmental Delivery Plan, proposed for Norfolk, would let house builders pay a flat fee instead of offsetting the water pollution new homes add. [15]

Natural England, the English government's nature agency, would charge about 2,675 pounds a home and spend the money on conservation. [15]

Today builders mostly buy credits from farmers, who change how they use land so less nitrate and phosphate reach rivers. [15]

Why it matters

The Environmental Farmers Group, which has more than 650 farmers, says private credits cost 3,500 to 9,000 pounds a home, so the fee could undercut them. [15]

Why it matters

The cost per new home of meeting the water pollution rule, two ways. Natural England's flat fee is below the lowest price farmers' credits sell for.

Why it matters

The head of the ecologists' professional body says only about a third of the plan's measures directly cut pollution. [15]

Who gains

The proposed flat fee is about 2,675 pounds a home. [15] Farmers' pollution credits sell for 3,500 to 9,000 pounds a home. [15]

Who pays

A flat government fee could undercut the private credits they built, the Environmental Farmers Group says. [15]

Nobody knows yet

Whether the flat fee in Norfolk pays for enough to stop the pollution.

A planning lawyer says Natural England must budget accurately or the plan could run short of money. [15] Ecologists say only about a third of its measures directly cut pollution. [15]

US ocean monitors go back into the sea

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A 238-foot ship set sail on Saturday to put back the first of a network of deep-sea monitors that the US government had begun removing. [16]

The 368 million dollar network of about 900 instruments sat off Oregon, Washington, Alaska and North Carolina, and between Greenland and Iceland. [16]

Its data serves weather forecasters, climate scientists and the fishing industry. [16]

The National Science Foundation began taking it out in late 2025, though it was built to run 15 more years. [16]

Why it matters

Scientists, fishermen and Congress all pushed back, and Congress forced the restoration. [16]

Why it matters

The data matters more as a powerful El Nino, a warming of the Pacific that shifts weather, builds and affects fisheries. [16]

Who gains

The deep-sea monitors that feed them data on currents and the coming El Nino are going back into the Pacific. [16]

Good news

A ship set sail on Saturday to put back deep-sea monitors off the US Pacific coast, after scientists, fishermen and Congress fought the US government's plan to remove them.

The FAO asks for money for dryland forests

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The FAO, the UN's food and farming agency, launched a call to action on dryland forests during World Forest Week in Rome. [17]

Forests and trees in dry regions support the food and income of more than two billion people, it says. [17]

Drylands cover about 41% of Earth's land and hold 27% of its forests. [17]

About a quarter of dryland forest is already damaged, mostly as land is turned into farms and towns or over-used. [17]

Why it matters

These trees feed herders' animals and give the poorest families fuel, wild food and income when crops fail. [17]

Why it matters

The FAO proposes a new support scheme to help countries find long-term money and plan for these forests. [17]

Atmonia plans fertiliser made on the farm

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Atmonia, an Icelandic company, is scaling up a way to make ammonia, which farms use as nitrogen fertiliser, from nitrogen and water in one step. [18]

The usual method first makes hydrogen and runs in huge plants that give off a lot of carbon. [18]

Atmonia aims for a unit the size of a shipping container that makes about 150 tonnes of ammonia a year. [18]

Its catalysts are made of common materials, its chief executive says. [18]

Why it matters

The company wants to sell to a small-scale market that brings fertiliser making to the farmer. [18]

Why it matters

Its process has not yet been run at this size, and the next step is a cell 40 times larger. [18]

The truth, across the day

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Nobody knows yet

How long US diesel stays this dear.

The US emergency oil store is at its lowest in 43 years, and a lecturer quoted by the Guardian says refilling it will slow any fall in prices. [11]

That's the whole Food day.

12 stories, 18 sources.