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
Drought and Planting Shape Weekly State Agriculture Recap
Farmers will soon be asked to help shape some of USDA’s most closely watched crop and inventory reports.
For farm country, that caution can mean higher costs, slower service, and less local investment.
Rayburn Electric Cooperative’s Chris Anderson discusses rapid AI data center expansion, mounting pressure on the electric grid, and impacts on agriculture and rural communities.
Dr. Derrell Peel says long-term price relief will depend more on rebuilding the U.S. cattle herd than increasing imports.
Ethanol production climbed to a four-week high while inventories fell to their lowest level since early October, according to energy data analyzed by the RFA.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Premieres Tue, 10/29/24 – 9 PM ET | 8 PM CT | 7 PM MT | 6 PM PT
Proud Cajun RanchHER Julie Trahan runs West Hackberry Cattle Company with her husband, Mark, deep in Louisiana’s coastal marshes.
The German company Constellr is part of the John Deere Start-Up Collaborator Program in 2024. It plans to launch a geothermal satellite next year that will give farmers and ranchers better tools to monitor surface temperature from space.
In an interview with RFD-TV’s own Suzanne Alexander, RanchHER Pilar Martinez talked about the upcoming RanchHER episodes on the way, including one that features her operation, Centennial Ranch in Dillion, Montana.
RanchHER Season 2, Episode 7
Premieres Tue, 10/22/24 – 9 PM ET | 8 PM CT | 7 PM MT | 6 PM PT