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
Brandy Carroll with the Arkansas Farm Bureau shares an update on planting conditions and what producers are facing this season.
April 10, 2026 02:40 PM
·
While social media has labeled the possible event a “Godzilla El Niño,” experts say the intensity remains uncertain—but the signal for a stronger pattern is there.
April 10, 2026 01:47 PM
·
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
April 10, 2026 01:23 PM
·
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
April 10, 2026 12:18 PM
·
Texas ranchers and lawmakers warn of renewed New World screwworm risks, highlighting prevention efforts, border concerns, and the role of sterile flies in protecting U.S. livestock.
April 10, 2026 11:19 AM
·
Farm Bureau economist Danny Munch discusses the USDA’s request for feedback on data and research, how such requests work, and what farmers should know about submitting comments before the Thursday, April 9 deadline.
April 09, 2026 03:39 PM
·
