KANSAS CITY, Mo. (RFD NEWS) — U.S. agriculture entered 2026 with mixed financial signals, as strong livestock markets continue to offset pressure on crop producers, according to the latest Agricultural Financial Update from the Federal Reserve Bank of Kansas City.
The report shows overall economic resilience supporting agriculture, but with widening gaps across industry sectors. Cattle prices remained a standout, supported by tight supplies, strong calf values, and lower feed costs, while dairy margins benefited earlier from herd growth and improved price-to-feed ratios. Livestock remains the farm economy’s brightest spot.
Row crop producers face a tougher outlook. Elevated U.S. and global supplies of corn and soybeans have weighed on prices, pushing crop profit margins close to breakeven. The analysis indicates that insurance programs and ad hoc government payments helped stabilize incomes in 2024 and 2025, but those supports are expected to provide only modest relief in 2026.
Financial stress remains contained but is building. Farm loan delinquency rates remain low, yet survey data indicate tightening credit conditions, higher loan demand, and pressure on renter-operators without land equity. Farmland values and cash rents have remained firm, helping keep overall leverage steady despite rising debt.
Farm-Level Takeaway: Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
Tony St. James, RFD NEWS Markets Specialist
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
January 16, 2026 01:44 PM
·
Farm CPA Paul Neiffer discusses how January’s WASDE report could impact ARC and PLC payments and updates on disaster relief programs as farmers navigate a challenging market environment.
January 16, 2026 01:34 PM
·
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
January 16, 2026 01:13 PM
·
January 16, 2026 09:57 AM
·
Soft equipment sales signal cautious farm spending as producers prioritize cash flow over expansion.
January 16, 2026 07:00 AM
·
Wind repowering offers a rare opportunity to renegotiate outdated leases and improve long-term land income for landowners who act early.
January 16, 2026 06:00 AM
·
Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
January 15, 2026 01:36 PM
·
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
January 15, 2026 12:51 PM
·
House Agriculture Committee Democrats are calling for action on the Farm and Family Relief Act, warning that proposed SNAP cost shifts to states could reduce food assistance for low-income families amid ongoing tariffs and trade disruptions that continue to strain U.S. farmers.
January 15, 2026 12:30 PM
·
