Farm Credit & Banking
Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Our friend Jake Charleston at Specialty Risk Insurance joins us for an industry update.
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
Rural businesses report softer sales, tougher hiring, and restrained investment — a backdrop that can pinch farm support capacity even if posted prices cool.
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
The allure of rural property — with its promise of space, freedom, and self-sufficiency — is undeniable, but local zoning regulations govern the reality.
According to the new report, seven out of ten rural bankers support President Trump’s recent trade steps with China, expressing cautious optimism about future export potential.
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.