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
Trade pacts with Malaysia and Cambodia unlock tariff-free and preferential lanes for key U.S. farm goods, expanding long-term demand in Southeast Asia.
October 28, 2025 02:08 PM
·
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
October 28, 2025 02:03 PM
·
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.
October 28, 2025 01:21 PM
·
The idea of buying more beef from Argentina does not sit well with much of farm country, raising some questions from analysts and producers.
October 28, 2025 01:20 PM
·
The President’s trip to Asia this week follows a trade mission by the Iowa Soybean Association. Farmers say they were reminded that U.S. soybeans have an international reputation that can be easy to take for granted here at home.
October 28, 2025 11:28 AM
·
Harvest Marches on as River Logistics And Inputs Steer Bids
October 27, 2025 04:09 PM
·
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
October 27, 2025 01:00 PM
·
Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
October 27, 2025 11:51 AM
·
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
October 27, 2025 11:41 AM
·
