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
Gov. Sarah Huckabee Sanders spoke with RFD-TV’s own Susan Alexander this Monday morning on the Market Day Report to explain Arkansas’s recently passed giving lawmakers greater authority to sanction foreign ag-land ownership within the state.
October 30, 2023 12:51 PM
·
In today’s blog post, RFD-TV Agri-Legal Expert Roger A. McEowen shares some random thoughts on land value and transitioning your farming or ranching business to a new generation.
October 13, 2023 11:31 AM
·
Acquiring farm or ranch land, as well as the key concepts and issues are the topics of today’s blog post by RFD-TV Agri-legal Expert Roger McEowen.
October 12, 2023 03:01 PM
·
Researchers out of the United Kingdom are using gene editing technology to help make High-Path Avian Flu less of a threat to poultry.
October 12, 2023 12:38 PM
·
The failure of a grain elevator can cause large problems for farmers and for the local community it serves. A farmer who knows their rights and where they stand if an elevator fails can be in a better position than those farmers who aren’t as well informed. That is the topic of today’s blog post by RFD-TV Legal Contributor Roger A. McEowen.
October 04, 2023 02:46 PM
·
A recent news story involving a group of farmers in Mississippi reveals the potential downside of selling grain under a deferred payment contract. The risk of deferred payment ag commodity sales and what can be done for protection—that is the topic of today’s blog post.
October 02, 2023 03:12 PM
·
