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
What are some common mistakes that farmers and ranchers make regarding estate planning? Here are a few key ideas to consider from RFD-TV Ag Legal and Tax Expert Roger McEowen with the Washburn School of Law.
September 24, 2024 01:43 PM
·
RFD-TV Farm Accounting & Tax expert Roger McEowen discusses crucial legal and tax issues for farmers and ranchers to manage operational risks in this Firm to Farm blog post.
September 23, 2024 03:02 PM
·
RFD-TV ag legal expert Roger McEowen examines common issues facing farmers, ranchers, and rural landowners: SAF fuel, R&D credit, drones, and cleaning fencerows.
September 17, 2024 12:15 PM
·
Right-to-Farm Law Inapplicable when Farming Operation Not in Compliance with State Law – All of It
August 28, 2024 12:02 PM
·
Agricultural law and taxation expert Roger McEowen discusses issues facing farmers and ranchers, like self-defense, Good Samaritan laws, preparing for the exit, and cleaning out fencerows.
August 27, 2024 09:07 AM
·
When you work on your estate plan, RFD-TV’s farm legal and tax expert Roger McEowen recommends preparing a vital list of information for whoever will need it.
August 16, 2024 01:31 PM
·
