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
Soft equipment sales signal cautious farm spending as producers prioritize cash flow over expansion.
Wind repowering offers a rare opportunity to renegotiate outdated leases and improve long-term land income for landowners who act early.
Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
NEFB President Mark McHargue recaps the Farm Bureau’s Annual Convention, producer sentiment in Nebraska, and discusses key issues facing agriculture.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.

LATEST STORIES BY THIS AUTHOR:

A new study found that retaining the EPA’s half-RIN credit protects soybean demand, farm income, and crushing-sector strength while preserving biofuel market flexibility.
The U.S. has a bountiful corn supply, but markets are waiting for the January WASDE Report, which will include updated yield estimates.
Rising federal debt is increasing pressure on Washington to limit spending, which could tighten future funding and delivery for agricultural programs.
“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.
CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.