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
Cotton farmers should weigh potential PLC payments against STAX coverage and act before the September 30 deadline.
September 24, 2025 12:57 PM
·
Kevin Charleston with Specialty Risk Insurance joined us Tuesday to share his perspective on farm safety and risk management during fall harvest.
September 23, 2025 04:33 PM
·
U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.
September 23, 2025 04:09 PM
·
Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.
September 23, 2025 01:32 PM
·
China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.
September 23, 2025 01:21 PM
·
According to the most recent version of the Household Food Security Report for 2022-2023, food insecurity is on the rise in the U.S.
September 22, 2025 01:49 PM
·
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
September 22, 2025 12:39 PM
·
Fewer cattle on feed suggest smaller slaughter numbers this winter, which could support strong prices if beef demand holds firm.
September 22, 2025 11:10 AM
·
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
September 22, 2025 10:52 AM
·
