CHICAGO, Il. (RFD-TV) — Farm finances tightened across the Chicago Federal Reserve’s Seventh District in the third quarter, with ag bankers reporting higher loan delinquencies even as farmland values posted modest year-over-year gains. The Chicago Fed’s latest AgLetter, led by policy advisor David Oppedahl, found credit conditions weakening further while crop farms remained pressed by narrow margins and rising costs.
Corn and soybean prices improved slightly late in the quarter, offering limited relief to crop producers who continue to face competition from Brazil and elevated input expenses. Bankers noted that weaker cash earnings are expected this fall and winter for most crop farms and dairy operations.
Operationally, more renewals and extensions signal increasing stress, and nearly half of the surveyed bankers anticipate a rise in forced liquidations. Some lenders are advising producers to tighten expenses or sell assets to rebuild working capital.
Regionally, farmland values rose about 3 percent from a year ago and held steady from the previous quarter, supported by strong demand and some interest from outside investors.
Looking ahead, livestock operations — particularly cattle and hog producers — may see stronger earnings as beef demand keeps prices elevated.
Farm-Level Takeaway: Credit stress is building for row-crop farms despite steady land values and slight price improvements.
Tony St. James, RFD-TV Markets Specialist
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
January 20, 2026 02:04 PM
·
From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
January 20, 2026 01:14 PM
·
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.
January 20, 2026 12:25 PM
·
Congressional leaders signal momentum toward expanded, targeted farm aid to help producers manage losses and cash-flow stress in 2026.
January 20, 2026 11:48 AM
·
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
January 19, 2026 05:00 PM
·
Freight volatility and route selection remain critical to soybean export margins and competitiveness.
January 19, 2026 04:00 PM
·
