LAKELAND, Fla. (RFD NEWS) — Farm balance sheets remain stable heading into 2026 largely because farmland real estate values continue supporting collateral and borrowing capacity even as income weakens.
AgAmerica Lending reports that farmland appreciation slowed in 2025 but remains historically strong. Only a few Midwest areas saw modest declines of two to three percent despite lower commodity prices.
This stability helps producers access credit, but it does not solve profitability challenges. Grain and cotton operations face the most financial pressure due to high costs and softer markets, while livestock — especially beef and poultry — remains comparatively stronger.
Farm-Level Takeaway: Land equity protects solvency but does not replace profitability.
Tony St. James, RFD NEWS Markets Specialist
Lenders are increasingly distinguishing between equity strength and income performance. Farms may appear financially healthy on paper, yet struggle to generate enough operating income to cover expenses and debt payments.
Strong land values, therefore, act as a buffer rather than a cure, buying time while producers adjust marketing, spending, and risk strategies.
Reliable waterways lower costs, protect export demand, and support long-term farm profitability.
January 29, 2026 06:00 AM
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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
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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
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Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
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Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
January 26, 2026 03:30 PM
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Payment totals alone do not show financial stress — production costs and net losses complete the picture.
January 26, 2026 02:30 PM
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