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
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
·
Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a
December 10, 2025 11:56 AM
·
American Soybean Association President Caleb Ragland shares the soybean sector outlook following the announcement of farm aid to offset losses for U.S. row crop growers.
December 10, 2025 11:33 AM
·
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
December 09, 2025 11:41 AM
·
The new rule removes prevented-plant buy-up coverage, prompting strong objections from farm groups concerned about added risk exposure.
December 09, 2025 05:00 AM
·
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.
December 08, 2025 05:40 PM
·
