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.
Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
February 02, 2026 10:22 AM
·
A rapidly intensifying winter storm is expected to develop into a bomb cyclone this weekend, affecting the Southeast, southern Virginia, and potentially parts of the mid‑Atlantic and New England.
January 30, 2026 10:52 AM
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
January 30, 2026 08:00 AM
·
AFBF Economist Danny Munch shares a closer look at the dairy market and the forces impacting producers today.
January 29, 2026 02:52 PM
·
Farm CPA Paul Neiffer helps producers navigate farm program payments and understand the key details farmers need to know.
January 29, 2026 01:25 PM
·
Roger McEowen explains the concept of “lawfare” — the use of legal systems to intimidate or financially exhaust an opponent — which grew into a central theme of U.S. ag law in 2025.
January 29, 2026 07:00 AM
·
