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
Brooks York with Agri-Sompo joined us to discuss this year’s harvest price calculations and what they could mean for producers nationwide.
October 22, 2025 03:05 PM
·
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
October 22, 2025 12:07 PM
·
NCBA CEO Colin Woodall says more conversations need to occur with stakeholders present surrounding President Trump’s proposal to lower consumer beef prices with Argentinian imports.
October 22, 2025 11:53 AM
·
October 21, 2025 06:18 PM
·
Bubba and Amy Miller run Miller Cattle Company in Eros, Louisiana. After visiting other homesteading fairs, they decided to put on their own.
October 21, 2025 02:28 PM
·
The new AFBF Women in Agriculture survey is accepting responses from women in the industry across the United States now through March 31.
October 21, 2025 01:56 PM
·
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
October 21, 2025 11:22 AM
·
Cattle groups say additional imports would offer little relief for consumers but could erode rancher confidence as the industry begins to rebuild herds.
October 21, 2025 11:06 AM
·
The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.
October 20, 2025 04:06 PM
·
