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
David Hardin with the Indiana Soybean Alliance discusses USMEF’s push to open new global export markets for both meat and soy-based feed.
November 13, 2025 01:10 PM
·
Some sustainability shifts are not particularly challenging and can be implemented with resources already available to farmers and ranchers on their operations.
November 13, 2025 01:00 PM
·
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
November 13, 2025 11:33 AM
·
Jeramy Stephens with National Land Realty shares tips for fall and winter to guide landowners and farmers.
November 12, 2025 03:40 PM
·
RealAg Radio host Shaun Haney shares insights from a recent study, discusses EV market access in Canada, and highlights other market opportunities top of mind for Canadian producers.
November 12, 2025 03:19 PM
·
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
November 12, 2025 01:20 PM
·
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
November 12, 2025 12:39 PM
·
A court decision that overturns Enlist labels would remove two major herbicides from use and reshape EPA’s future mitigation policies for other pesticides.
November 12, 2025 12:27 PM
·
Rural businesses report softer sales, tougher hiring, and restrained investment — a backdrop that can pinch farm support capacity even if posted prices cool.
November 12, 2025 12:22 PM
·
