Bankers from across the country are warning tough conversations are ahead.
In a Senate Ag Committee hearing this week, one loan officer testified capital is running out across farm country.
“What we’re seeing is continued significant earned network losses across the board. Talking to lenders down in that area, and as well as what I’m seeing in the Midwest, is certain parts of the Southeast part of the country are on year 2-3, if not 4, of losses and having two bankers are starting to work out plans, and having uncomfortable conversations on ‘what is the end game here?’ When I look at the Midwest coming through renewal season, we were able to get all of our renewals completed this year, but those conversations are ‘what is the burn rate of working capital?’ It’s creeping up on us much faster,” said Caleb Hopkins with First Dakota National Bank.
While there could be a rocky road ahead, producer sentiment is up. Economists with Purdue University say the ag economy barometer rose 11 points last month. However, the report showed little change in how producers feel about future prospects.
Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
January 26, 2026 03:00 PM
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Payment totals alone do not show financial stress — production costs and net losses complete the picture.
January 26, 2026 02:30 PM
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A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
January 26, 2026 01:10 PM
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Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.
January 26, 2026 11:19 AM
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Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
January 26, 2026 10:00 AM
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Rising import pressure and tougher export competition are likely to persist into 2026, supporting domestic supplies while capping export growth.
January 26, 2026 09:56 AM
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