Agricultural lenders surveyed in the mid-year 2025 ABA/Farmer Mac Agricultural Lender Survey expect only about 52% of U.S. farm borrowers that report to turn a profit this year. That is the lowest level since 2016. This reflects tighter margins and the financial stress across major crop regions.

Grain producers, particularly corn, soybean, and cotton operations, are under the most strain. Livestock operations remain more stable, driven by strong protein demand and lower feed costs.

Lender concerns continue to center on liquidity, working capital, profitability, input costs, interest rates and loan repayment capacity. Over 70% of lenders report worsening working capital among borrowers.

Nearly 93% of lenders anticipate an increase in farm debt, mirroring past downturns when producers relied on loans to manage operations. Supplemental income from sources like wind or solar leases, CRP payments and government support remains critical. Over half of lenders cite these revenues as key to maintaining cash flow.

Despite tightening margins, farmland values remain historically high. This is supported by limited supply. However, two-thirds of lenders expect values to flatten or decline in 2026.

In the future, effective cash flow management, margin discipline and careful credit planning will be essential for farmers. Lenders will focus on liquidity, repayment capacity and collateral monitoring. Strong operators are expected to navigate this period successfully, while weaker operations may face tighter credit conditions.

Read more on the ag lenders’ outlook for farm borrowers here.