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
The Big Beautiful Bill has the potential to keep rural residents living and operating in their home communities.
Michigan corn farmer and NCGA Vice President-Elect Matt Frostic will lead the task force. He joined us on Thursday to share his insights on the escalating corn crisis.
Speaking about his administration’s tariff strategy, Trump acknowledged that producers could face financial strain in the short term but promised stopgap support.
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
As input costs continue to rise, diesel prices have held steady in recent weeks, according to energy analysts at GasBuddy.
The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.

LATEST STORIES BY THIS AUTHOR:

Consumer demand for regional food systems is strong, but the challenge lies in scaling production and infrastructure to meet that growing need.
National FFA Organization Chief Program Officer Christine White previews the programs and activities planned for this year’s FFA Convention.
Dave Kestel, a farmer from Will County and member of the Illinois Farm Bureau, joins us to share a boots-on-the-ground update on the 2025 corn harvest.
Wed, 10/15/25 – 7:30 PM ET | 6:30 PM CT | 5:30 PM MT | 4:30 PM PT
American Coalition for Ethanol’s Ron Lamberty shares the significance of California’s approval, opening up the country’s largest gasoline market to a cleaner-burning, often lower-cost fuel option.
Treasury Secretary Scott Bessent stated this week that the government will intervene to help, following China’s withdrawal from the U.S. soybean market. One trader says the industry will remain in a holding pattern until Tuesday.