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
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
October 31, 2025 12:50 PM
·
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.
October 31, 2025 12:26 PM
·
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
October 31, 2025 11:44 AM
·
Treat succession like any major crop — plan early, document clearly, and calibrate cash flow so the next generation can succeed.
October 31, 2025 11:21 AM
·
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to discuss the implications for farmers.
October 30, 2025 02:37 PM
·
RFD-TV tax expert Roger McEowen discusses the renewed tax provision and how cattle producers can take advantage of it to recover investments in heifer retention and herd expansion more quickly.
October 30, 2025 01:23 PM
·
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
October 30, 2025 12:56 PM
·
Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
October 30, 2025 12:04 PM
·
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
October 29, 2025 03:35 PM
·
