NASHVILLE, TENN. (RFD NEWS) — Farm operating debt remains mostly stable across the South, but late-loan categories are showing pressure after a difficult year for row-crop margins. Charley Martinez with the University of Tennessee Institute of Agriculture says non-real estate farm loans were 4 percent higher in the fourth quarter of 2025 than a year earlier.
The biggest concern is loan quality. Martinez says non-accrual loans stayed elevated from the previous quarter and were 172 percent higher than in the fourth quarter of 2024. Loans 90 days or more past due were nearly unchanged from a year earlier.
Loans 30 to 89 days late fell from their first-quarter peak, but Martinez says some of that debt likely moved into the non-accrual category by year-end. That category still remained 35 percent higher than fourth-quarter 2024.
State pressure varied. Alabama, Georgia, Louisiana, Mississippi, and Arkansas were above the regional average for total late debt as a share of total loan volume.
Higher crop prices and future ARC and PLC payments may help, but input costs, interest rates, and tight margins keep working capital important.
Farm-Level Takeaway: Operating debt remains manageable in many areas, but rising non-accrual loans show why careful cash-flow management matters in 2026.
Tony St. James, RFD News Markets Specialist
While social media has labeled the possible event a “Godzilla El Niño,” experts say the intensity remains uncertain—but the signal for a stronger pattern is there.
April 10, 2026 01:47 PM
·
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
April 10, 2026 01:23 PM
·
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
April 10, 2026 12:18 PM
·
Farm CPA Paul Neiffer joined us to break down the application process for Stages 1 and 2 of the USDA’s Supplemental Disaster Relief Program, and what farmers can expect as the deadline approaches.
April 09, 2026 01:59 PM
·
Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
April 09, 2026 01:25 PM
·
Lower shipping costs favor corn, while soybeans face pressure.
April 09, 2026 11:41 AM
·
