MINNEAPOLIS, MINN. (RFD NEWS) — Farm finances weakened across the Minneapolis Federal Reserve District as higher input costs added pressure to already tight crop margins. The Minneapolis Fed says more than 75 percent of agricultural lenders reported lower farm incomes in the first quarter compared with a year earlier.
Loan demand moved higher as cash flow tightened. Forty-six percent of lenders reported increased loan demand, while nearly half said renewals or extensions increased. Almost half also reported lower loan repayment rates.
Capital spending continued to pull back. Sixty-five percent of lenders reported lower spending on equipment and buildings, showing producers remain cautious about major purchases heading into the growing season.
Land values were mixed. Non-irrigated cropland slipped slightly, irrigated cropland rose 1.4 percent, and ranchland values increased more than 3 percent, likely supported by cattle profitability. Cash rents fell across major land categories.
The outlook remains cautious, with lenders expecting lower income, weaker repayment, and higher loan demand.
Farm-Level Takeaway: Higher input costs and tighter cash flow are keeping pressure on farm income, credit needs, and capital spending.
Tony St. James, RFD News Markets Specialist
Higher prices are bringing relief to markets, but rising input costs are putting pressure on the producers.
March 19, 2026 12:59 PM
·
Lower hop stocks may support prices in the near term.
March 19, 2026 06:00 AM
·
Bryan Combs with USDA’s National Agricultural Statistics Service breaks down new farmland data from the TOTAL survey, highlights key findings, and potential impacts for the ag sector. ASFMRA’s David Klein also shares how those trends are reflected in the current farmland market, especially in the Midwest.
March 18, 2026 04:55 PM
·
Geopolitical tensions in the Strait of Hormuz disrupt fertilizer shipments, raising costs and creating uncertainty for U.S. farmers ahead of planting season.
March 18, 2026 03:21 PM
·
APHIS Veterinary Medical Officer Dr. Chelsey Shiveley discusses USDA’s biosecurity resources available to poultry producers ahead of spring migration, increasing the risk of Highly Pathogenic Avian Influenza (HPAI) threatens commercial flocks.
March 18, 2026 02:08 PM
·
NCBA President Colin Woodall states that misinformation like this is damaging to cattle producers, the beef supply chain, and consumer confidence
March 18, 2026 12:09 PM
·
