WASHINGTON, D.C. (RFD-TV) — Farm Credit Administration board members reviewed a quarterly update (PDF Version) indicating that U.S. agriculture is entering 2026 with mixed economic signals: low crop margins persist, while livestock profitability remains strong. The briefing also found the Farm Credit System financially sound, though credit stress is slowly increasing in select sectors.
The broader economy ended 2025 relatively stable, with GDP growth just above 2 percent and unemployment rising to 4.4 percent. Inflation eased but remains above the Federal Reserve’s target, even after three modest rate cuts. Elevated input costs, especially in services and manufacturing, continue to pressure margins.
In agriculture, bumper crops and weak commodity prices are squeezing grain and soybean producers, compounded by fertilizer costs and storage challenges. Livestock producers, by contrast, are benefiting from strong prices and favorable feed costs. The newly announced $12 billion in federal tariff-related assistance is expected to provide short-term relief, though most farm-bill payments will not arrive until late 2026.
The Farm Credit System reported $6.0 billion in year-to-date earnings through September, with capital rising to $84.3 billion. While loan quality remains solid overall, nonperforming assets edged higher, reflecting early stress among some borrowers.
Farm-Level Takeaway: Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
Tony St. James, RFD-TV Markets Specialist
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
January 26, 2026 03:30 PM
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Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
January 26, 2026 03:00 PM
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Payment totals alone do not show financial stress — production costs and net losses complete the picture.
January 26, 2026 02:30 PM
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A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
January 26, 2026 01:10 PM
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Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.
January 26, 2026 11:19 AM
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Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
January 26, 2026 10:00 AM
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Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
January 23, 2026 04:40 PM
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USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
January 23, 2026 03:39 PM
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Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
January 23, 2026 02:00 PM
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