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
Reliable waterways lower costs, protect export demand, and support long-term farm profitability.
January 29, 2026 06:00 AM
·
Justin Wheeler with the American Society of Farm Managers & Rural Appraisers joined us with insight into current farmland values and what to watch in the year ahead.
January 28, 2026 02:42 PM
·
Greater transparency into USDA-backed lending can help rural lenders and producers better assess credit availability and investment trends.
January 28, 2026 07:00 AM
·
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
·
Roger McEowen, with the Washburn School of Law, offers an in-depth look at two of the top legal issues of 202. Today, he walks through last year’s Waters of the United States (WOTUS) ruling and “lawfare.”
January 27, 2026 02:53 PM
·
Payment totals alone do not show financial stress — production costs and net losses complete the picture.
January 26, 2026 02:30 PM
·
