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
Farm CPA Paul Neiffer explains the updates to crop insurance subsidies, additional benefits for new farmers, and eligibility considerations for those entering the program.
March 19, 2026 02:12 PM
·
As a part of the International Year of the Woman Farmer, women across the state are being recognized for shaping the future of agricutlure.
March 19, 2026 02:01 PM
·
At the Port of Brownsville, shrimpers are facing rising operating costs and increased competition, but many shrimp producers and local lawmakers remain optimistic about the industry’s future.
March 19, 2026 01:22 PM
·
Higher prices are bringing relief to markets, but rising input costs are putting pressure on the producers.
March 19, 2026 12:59 PM
·
Bryan Combs with USDA’s National Agricultural Statistics Service breaks down new farmland data from the TOTAL survey, highlights key findings, and potential impacts for the ag sector. ASFMRA’s David Klein also shares how those trends are reflected in the current farmland market, especially in the Midwest.
March 18, 2026 04:55 PM
·
Geopolitical tensions in the Strait of Hormuz disrupt fertilizer shipments, raising costs and creating uncertainty for U.S. farmers ahead of planting season.
March 18, 2026 03:21 PM
·
