Managing Market Volatility and Risk as Long-Term Farm Borrowing Costs Remain High into 2026

Tony Adkins with Specialty Risk Insurance addresses current market challenges for farmers and ranchers and offers strategies to help producers navigate risk.

Melissa_Eshelman_12_28_19_USA_IA_Eshelman_Farms_049.jpg

Melissa Eshelman (FarmHER Season 2, Ep. 10)

FarmHER, Inc.

SARASOTA, FLORIDA (RFD NEWS) — Long-term borrowing costs are expected to stay elevated at the farm gate, keeping pressure on financing decisions tied to land, equipment, and expansion.

Matt Erickson with Terrain Ag says inflation expectations, a higher neutral interest rate, and an elevated term premium are preventing long-term Treasury yields from falling much. Even with the Federal Reserve expected to gradually ease short-term rates, long-term yields have remained stubbornly firm.

Farm-Level Takeaway: Prioritize liquidity and discipline in a higher-rate environment.
Tony St. James, RFD NEWS Markets Specialist

That split matters on the farm. Lower short-term rates may trim some operating loan costs for seed, fertilizer, and other seasonal needs, but higher long-term rates still weigh on machinery purchases, real estate financing, and refinancing opportunities.

The pressure is especially important for capital-intensive crop and livestock operations, where debt costs can shape cash flow, growth plans, and balance sheet flexibility more than day-to-day market swings.

Erickson says strong labor markets, persistent Federal deficits, and steady consumer demand are likely to keep long-term rates higher for longer, favoring caution over aggressive leverage.

Tony Adkins with Specialty Risk Insurance joined us on Tuesday’s Market Day Report from Florida to discuss how insurance solutions are helping farmers manage risk as agricultural producers face both opportunities and challenges with navigating rising input costs and ongoing market volatility.

Adkins shared why he was in Florida and highlighted conversations around agriculture and insurance happening in regions not traditionally considered cattle country. He also addressed current market conditions, including the effects of rising input costs and volatility, as well as how insurance companies are responding to support producers.

Finally, Adkins offered farmers guidance on steps they can take to better manage risk amid uncertain economic conditions.

LEARN MORE: www.specialtyrisk.ag

Related Stories
Strong yields and higher cattle prices helped stabilize conditions, but weak crop prices and rising carryover debt remain major challenges for Eleventh District farmers.
Former Market Day Report anchor Janet Adkison was inducted into the National Association of Farm Broadcasting Hall of Fame, recognizing over 20 years of service sharing stories that impact Rural America.
Jake Charleston, with Specialty Risk Insurance, joins us now for an industry update and advice for cattle producers as they consider options for managing the risks of a murky market.
The National Milk Producers Federation will launch a new advocacy campaign to secure a final vote, urging House lawmakers to approve the bill as soon as they return from the Thanksgiving recess.
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.
Concerns over Chronic Wasting Disease are fueling a long-standing legal battle between Minnesota regulators and deer farmers. The case could soon reach the state’s Supreme Court with broader implications for agriculture.
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
USDA Undersecretary Luke Lindberg told RFD-TV News that we can only guess what Congress will do down the road. Still, the USDA recognizes its responsibility to spend resources efficiently and effectively.
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
National Land Realty’s Jeramy Stephens shares his outlook on farmland market trends, which remain under close watch as new federal assistance programs roll out — with experts analyzing potential impacts on land values, buying, and stability.