NASHVILLE, Tenn. (RFD NEWS) — U.S. agriculture is entering 2026 with a noticeably tighter credit environment, requiring producers to be more deliberate with business planning when it comes to operating loans, refinancing, and land purchases. AgAmerica Lending says higher interest rates, compressed margins, and uneven income performance are converging just as many operations rely more heavily on financing to maintain cash flow.
Despite those pressures, balance sheets across agriculture remain relatively strong, supported by resilient farmland values. That equity has helped cushion recent volatility, but lenders are becoming more selective. According to AgAmerica, lenders are placing greater emphasis on liquidity, repayment capacity, and documentation, signaling a shift from readily available credit to more disciplined underwriting.
Crop producers face the most strain. Lower grain and fiber prices, paired with elevated input and labor costs, have tightened working capital and increased dependence on operating credit. A Farmer Mac survey cited by AgAmerica shows nearly 70 percent of ag lenders now view grain and cotton operations as their top risk concern, up sharply from two years ago.
Delinquencies remain contained, but scrutiny is increasing. Operating loan renewals, refinancings, and land purchases now require clearer cash flow plans and stronger borrower readiness.
Farm-Level Takeaway: Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens.
Tony St. James, RFD NEWS Markets Specialist
Michelle Perez shares more about the American Farmland Trust’s resource to help farmers and producers plan soil health improvements.
December 19, 2025 02:03 PM
·
Farm CPA Paul Neiffer outlines the key difference between previous ECAP payments and the Farm Bridge Assistance Program.
December 19, 2025 01:56 PM
·
Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
December 19, 2025 01:43 PM
·
Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
December 19, 2025 01:05 PM
·
Weather-driven transportation disruptions can tighten logistics, affect basis levels, and delay grain movement during winter months.
December 19, 2025 12:55 PM
·
Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
December 18, 2025 02:32 PM
·
December 17, 2025 12:56 PM
A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
December 17, 2025 07:00 AM
·
Larger operations maintain cost advantages, while softer equipment sales suggest producers are pacing machinery upgrades amid tighter margins.
December 17, 2025 06:00 AM
·
