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
Cotton acres slipping as competing crops gain ground.
February 16, 2026 12:00 PM
·
Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
February 16, 2026 11:30 AM
·
Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
February 16, 2026 11:00 AM
·
The USDA’s Farm Service Agency (FSA) has issued final Emergency Livestock Relief Program (ELRP) payments totaling more than $1.89 billion.
February 16, 2026 10:55 AM
Specialty Crops Acreage Reporting Deadline for 2025 is March 13
February 13, 2026 04:12 PM
Livestock Conservancy Senior Program Manager Jeannette Beranger explains the upcoming poultry census and ongoing efforts to preserve rare and heritage poultry breeds raised across the U.S.
February 13, 2026 02:20 PM
·
