CoBank 2026 Outlook: Global Grain Surpluses, Heavier Carcasses, and Tech Expansion Shape the Year Ahead

CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.

NASHVILLE, TENN. (RFD-TV) — New data this week offers a look at what the agriculture sector could face next year. CoBank’s 2026 Year Ahead Report identifies several areas it believes will shape the industry.

On the grain side, CoBank estimates a global oversupply. They warn U.S. farmers will face many hard choices before spring planting. For proteins, economists said heavier carcasses and smarter feeding will be key priorities in the year ahead.

Regarding the overall economy, CoBank said core inflation will likely soften further in the second half of the year. Economists also expect more interest rate cuts in 2026, following three modest cuts in 2025.

Digital infrastructure is also a key component of the report. CoBank reports a surge in demand for data centers, and rural towns are often ideal locations. While there has been pushback, they say companies like Microsoft and Amazon are writing big checks to be part of those communities, forecasting that communities rejecting data center projects could trigger significant financial losses for rural areas in the months and years ahead.

READ MORE: CoBank - Ample global supplies and trade uncertainty will burden markets in 2026

Related Stories
Farmer sentiment slipped three points to 136 in December’s Ag Economy Barometer, reflecting a softer long‑term outlook among producers.
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
Weather, Tight Supplies, and Planning Shape Farm Decisions
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.

Marion is a digital content manager for RFD-TV and The Cowboy Channel. She started working for Rural Media Group in May 2022, adding a decade of experience in the digital side of broadcast media and some cooking experience to the team.