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.
In this
Firm to Farm blog post, RFD-TV agri-legal expert Roger McEowen tackles a handful of topics related to property rights.
April 01, 2024 01:55 PM
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What is “gross income from farming” for purposes of Chapter 12 (farm) bankruptcy – that is the topic of today’s
Firm to Farm blog post by Roger McEowen.
March 12, 2024 11:34 AM
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In today’s Firm to Farm blog post, Roger McOwen breaks down the Court’s regulations on unconstitutional federal power and the ruling’s impact on BOI reporting.
March 11, 2024 03:00 PM
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The topic of this Firm to Farm blog post by RFD-TV agri-legal expert Roger McEowen is a potpourri of legal issues facing farmers and ranchers—farm bankruptcy, sovereign immunity, farm leases, and pipeline damages.
March 07, 2024 06:51 PM
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What can these facilities do to protect themselves? I wrote about this issue last spring, and since that time, the U.S. Court of Appeals for the Eighth Circuit has issued a significant opinion. That makes an update in order.
February 28, 2024 11:04 AM
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On January 31, the U.S. House overwhelmingly passed tax legislation containing provisions of importance to farmers and ranchers in particular and many taxpayers in general.
February 26, 2024 02:49 PM
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