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.
University of Illinois Ag Economist Gary Schnitker says early projections indicate soybeans will be more profitable than corn in 2026.
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Jeramy Stephens, with National Land Realty, says that despite today’s economic headwinds, farmland remains a resilient asset — and understanding local conditions is key to making sound decisions.
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Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
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RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
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Dividing up a family farming operation can be challenging, especially for children who may not want to become farmers themselves.
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Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
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