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.
Joe Peiffer with Ag & Business Legal Strategies advises farmers on end-of-year financial planning, including preparing records, avoiding common credit mistakes, and evaluating equipment purchases for 2026.
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RFD-TV Farm Legal and Tax Expert Roger McEowen explains the basics of Low-Risk Credit in Farming, and how an understanding of the farm credit landscape lets producers tactfully approach debt.
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Low-risk credit farming is not a technique; it is a culture of financial discipline. It requires the same level of expertise in the farm office as it does in the field.
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Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
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