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
Brooks York of AgriSompo discusses projected prices and how farmers are adapting their crop insurance strategies as the price discovery period comes to a close.
Ranger Road Fire has burned 283,000 acres across Kansas and the Oklahoma Panhandle and is nearing containment, as ranchers begin assessing cattle and infrastructure losses as they look toward recovery.
Agriculture avoided major disruptions, but trade uncertainty remains elevated.
The debate now matters as much as the policy — market rules and regulatory clarity depend on whether Congress can finish the bill this year.
Fed cattle numbers are down two percent in February, according to the latest USDA report. Marketings fell 13 percent, signaling continued pressure on beef prices in 2026.
Galynn Beer of Tidal Grow Agri-Science joined us to discuss challenges in fertility management, the benefits of Align-N, and what growers can expect at Commodity Classic next week.

LATEST STORIES BY THIS AUTHOR:

Marilyn Schlake with the UNL Department of Agricultural Economics joined us for a closer look at the evolving role of livestock sale barns.
RFD NEWS correspondent Frank McCaffrey recently spoke with Dr. Mike Vickers, a South Texas rancher, who says illegal border crossings have dramatically declined in the last year.
Auction manager and West Texas A&M University student Presley Graves joined us to discuss the growth of StockShowAuctions.com and its impact on youth in agriculture.
Texas Farm Bureau President Russell Boening joined us with the latest update on storm conditions and impacts across the state.
Mike Knotts with the Tennessee Electric Cooperative Association joined us with the latest on storm impacts, power restoration, and safety considerations following the ice storm.
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.