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
In today’s Firm to Farm blog post, RFD-TV ag law expert Roger McEowen briefly examines several of the issues that farmers and ranchers face.
August 08, 2024 12:24 PM
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When it comes to agricultural law and tax, educating yourself about potential issues and seeking legal and tax counsel is crucial for any agriculture business.
RFD-TV News contributor Roger McOwen covers important topics in ag law and taxation, including FBAR, Read Before Signing, Reporting 4-H Income, and Attorney-Client Privilege.
RFD-TV Agricultural Law & Taxation expert Roger McEowen discusses the Supreme Court’s recent repeal of the Chevron agreement and other current topics in ag law.
With today’s post, RFD-TV Ag Legal & Tax Expert Roger McEowen focuses on some more common issues farmers, ranchers, and rural landowners frequently face.
Roger McOwen started a new farm law and taxation blog that contains a “Rural Practice Digest.” You can access it through a subscription to his new Substack blog. Find the link here.
