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
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
November 07, 2025 11:02 AM
·
Distillers dried grains (DDG) values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.
November 07, 2025 10:45 AM
·
Pork producers should prioritize health and productivity gains, hedge feed and hogs selectively, and watch Brazil’s export pace and China’s sow policy for price signals.
November 06, 2025 03:03 PM
·
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
November 06, 2025 02:45 PM
·
AFBF Economist Danny Munch shares how passing the Whole Milk for Healthy Kids Act could give the dairy industry a needed boost.
November 06, 2025 02:31 PM
·
Texas Cattle Feeders Association Chairman Robby Kirkland explains how the ongoing U.S.-Mexico border closure impacts feed yards that rely on Mexican cattle due to the New World Screwworm.
November 06, 2025 12:01 PM
·
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
November 06, 2025 11:16 AM
·
Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
November 06, 2025 10:53 AM
·
U.S. sugar producers and processors should brace for price pressure and challenging export logistics with global sugar supply ramping up — driven by Brazil, India, and Thailand — especially at the raw processing level.
November 05, 2025 01:02 PM
·
