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
Analysts warn the closed U.S.-Mexico border is straining cattle supplies and packing capacity. StoneX and USDA data point to long-term industry shifts.
February 25, 2026 12:37 PM
·
USDA’s 2026 Food Price Outlook projects food prices rising 3.1%, with higher beef costs and falling egg prices shaping consumer trends.
February 25, 2026 11:46 AM
·
Land equity protects solvency but does not replace profitability.
February 25, 2026 09:00 AM
·
Rail consolidation could affect grain basis, freight rates, and service reliability across major producing regions.
February 25, 2026 06:00 AM
·
Alan Bjerga of the National Milk Producers Federation discusses the Dairy Margin Coverage program, recent improvements, and what producers need to know ahead of this week’s enrollment deadline.
February 24, 2026 03:01 PM
·
Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
February 24, 2026 11:57 AM
·
