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
Sen. Deb Fischer reintroduces the HAULS Act to update hours-of-service exemptions and definitions affecting livestock and agricultural haulers. She joins us on Market Day Report to share more about her proposed legislation.
January 06, 2026 01:28 PM
·
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
January 06, 2026 12:21 PM
·
New World Screwworm cases in Mexico, including one within 200 miles of the U.S. border, are adding pressure to livestock markets and trade decisions.
January 06, 2026 12:09 PM
·
On a spreadsheet, it looks like the ultimate way to harvest extra profit. But in the eyes of the IRS—as RFD-TV Farm Legal & Tax Expert Roger McEowen explains—this “tax-free” bank can quickly turn into a field full of weeds.
January 06, 2026 07:00 AM
·
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
January 06, 2026 06:00 AM
·
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
January 05, 2026 03:58 PM
·
Weather, Tight Supplies, and Planning Shape Farm Decisions
January 05, 2026 03:23 PM
·
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
January 05, 2026 03:08 PM
·
Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
January 05, 2026 03:00 PM
·
