There’s trouble brewing under the surface of ag markets, farm creditors warn

The ag markets are holding steady as lawmakers work to keep the government running. As farmers look ahead to next year, farm creditors say inputs may be cheaper but that relief is hiding a bigger problem.

“We’re seeing large declines in expenses for feed, fertilizer, and fuels, although there are still some increasing costs for things such as interest on debt or on labor costs. Now at an aggregate level, we can look at this and say that liquidity and profitability ratios for the sector have been largely stable. Ratios are improving, but these aggregate stories really are masking sub-sector strain,” said Greg Lyons.

Crop receipts are expected to be down $32 billion from last year. It is one reason multiple ag groups have been pushing lawmakers to get emergency aid to farmers.

Related Stories
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.
Ohio AgNet’s Dusty Sonnenberg takes us up in the cab with a popcorn farmer bringing in this year’s haul.
The DOJ’s new antitrust probe could reshape beef-packer behavior, with potential impacts on fed-cattle prices, processor margins, and long-term competition across the supply chain.
The Senate has cleared a path to reopen USDA, but full restoration of services depends on House approval and the President’s signature.

LATEST STORIES BY THIS AUTHOR:

RealAg Radio host Shaun Haney joined us on Friday’s Market Day Report to discuss what the Carney-Xi meeting could mean for Canadian producers.
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
The Livestock Conservancy joins us in the RFD-TV Studio to discuss how protecting heritage-breed poultry is essential to resilient food systems and the preservation of agricultural traditions.
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.