LAKELAND, Fla. (RFD NEWS) — Producers entering 2026 are relying more heavily on credit and operating loans as tighter margins shrink working capital across agriculture. According to AgAmerica Lending, lenders widely expect debt demand to increase as farms finance operating costs rather than profits.
Nearly 93 percent of agricultural lenders anticipate rising farm debt over the next year. U.S. farm debt already reached roughly $594 billion in 2025, while profitability expectations have dropped sharply from recent years.
Higher interest rates remain a major factor. Even with gradual easing, borrowing costs remain elevated relative to pre-pandemic levels, increasing expenses on operating lines, equipment purchases, and real estate loans. Lenders are placing greater emphasis on liquidity, repayment capacity, and sector exposure when evaluating borrowers.
Bankruptcy pressure is also building. Chapter 12 farm filings rose 55 percent in 2024 and are expected to trend higher, particularly among grain and cotton operations facing weaker margins.
Farm-Level Takeaway: Cash flow management and lender communication are becoming critical survival tools.
Tony St. James, RFD NEWS Markets Specialist
December 17, 2025 12:56 PM
Farm Legal Expert Roger McEowen with the Washburn School of Law joins us to share more about the North Dakota court decision and the its larger impact on agriculture.
December 15, 2025 01:47 PM
·
“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.
December 12, 2025 03:32 PM
·
CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.
December 12, 2025 12:42 PM
·
Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
December 12, 2025 11:42 AM
·
The specific provision in the CO₂ storage law allowed the North Dakota Industrial Commission (NDIC) to authorize carbon storage projects to proceed even if they lacked unanimous consent from all affected landowners.
December 11, 2025 04:15 PM
·
