American Farm Bureau Federation President Zippy Duvall commented today on the Senate Committee on Agriculture, Nutrition, and Forestry vote to advance the farm bill to the full Senate.

“We applaud members of the Senate Agriculture Committee who recognize the critical support the farm bill provides for America’s farmers and ranchers. We appreciate Chairman Boozman’s leadership in moving this legislation forward and we urge lawmakers in the House and Senate to advance a farm bill to President Trump’s desk.

“It’s been almost a decade since Congress last passed a farm bill. In the past 10 years, more than 200,000 family farms have gone out of business, as farmers grappled with a pandemic, global unrest, rising expenses and falling prices paid for the food they grow. A new, modernized farm bill will help give farmers the tools they need to survive continued and unforeseen challenges ahead.

“More than 100 farmers and ranchers descended on Washington this week to send the message that we’re counting on Congress to work together to advance a bipartisan farm bill. A strong farm bill ensures an abundant and safe food supply. It benefits every family in America, regardless of their political affiliation.”

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Testimony of Carlyle Currier

President, Colorado Farm Bureau

U.S. House Committee on Agriculture

Wednesday, September 16, 2026

Increasing Demand and Opportunities for Homegrown Products Here and Abroad

Good morning, Chairman Thompson, Ranking Member Craig, and distinguished members of the House Committee on Agriculture. My name is Carlyle Currier, and I serve as the President of Colorado Farm Bureau. I am also here today representing the American Farm Bureau Federation. I want to thank you for the opportunity to join these committee proceedings and share my testimony.

I live and ranch on Colorado’s western slope, in the rural community of Plateau Valley — home to around 1,400 residents. Ranching is the lifeblood of our community, sustaining families like mine since the 1880s. Our community is home to many legacy ranches that are legally defined by the State of Colorado as Centennial Ranches — ranches that have been continuously owned and operated by the same family for more than 100 years.

Currier Ranch is one of those Centennial Ranches. My son Joel is the fifth generation on the ranch. Joel and I raise beef cattle and ship calves in the fall when they come off our U.S. Forest Service permit at around 600-700 pounds. Our beef is fed, finished, and enters the supply chain for consumers. In our program, we also retain ownership, which allows us to obtain proprietary data used to improve genetic performance. For us, improving genetic performance translates into more efficient use of our natural resources and yields a higher quality product for consumers, as well as a premium price. Like many other businesses, in ranching, return is tied to demand. The return on my investment in my own herd is forever tied to consumer demand for American beef. As an aging rancher, I often run calculations as to how tax liabilities impact today’s bottom line and tomorrow’s next generation of ownership. Fortunately, Congress fortified long-term capital investments into the beef industry by making permanent critical tax provisions in the One Big Beautiful Bill Act passed last summer. Provisions like permanent estate tax exemptions and business income deductions will enable farmers to invest back into their business, encouraging herd rebuilding and empowering succession planning. Ultimately, I look forward to the day when I can hand the reins over to my son because I know he now has a better chance to succeed in producing American beef and carrying on the legacy of the four generations before him.

Ranching in the West comes with many challenges. Unpredictable weather patterns, long distances between livestock markets, and a shortage of veterinarians and processors are just a few of those challenges. I’d like to thank the committee for including necessary updates to the Livestock Forage Program, or LFP, the Livestock Indemnity Program, and vitally important animal health programs. Due to these changes, ranchers who experience a D2 or greater drought for four consecutive weeks are eligible for LFP. Before, that timeframe was eight weeks.

As we are all aware, wildfires and predation in the West are an all-too-common occurrence. Ranchers like me can now be indemnified for 100% market value of an animal lost to predation and 75% for losses from adverse weather or disease. More importantly, LIP will now cover unborn livestock losses occurring after Jan. 1, 2024.

Supply and Demand

We can discuss the programs that are there to help ranchers get through tough times, but nothing helps a cattle rancher more than strong demand, fair and free trade, and a consistent marketplace. In a May 2026 Farm Bureau Market Intel, AFBF economists said that “Americans are eating more meat than ever,” and that “beef prices continue to set records driven by strong demand and the smallest U.S. cattle herd in 75 years – a result of years of drought and elevated operating costs that have led farmers to liquidate their herds.”

According to data from USDA’s Economic Research Service (ERS), the national average retail price for all-fresh beef was a record-high $9.99 per pound in April 2026, up $1.50 per pound, or about 18%, from April 2025. When it comes to beef, steaks are the king of the grill. According to data from the Federal Reserve Bank of St. Louis (FRED), the national average price of all uncooked beef steaks in U.S. cities was record high at $13.02 per pound in April, up 17% from $11.12 per pound last year.

Behind these higher prices, the United States is navigating the lowest cattle supply in 75 years. This smaller supply follows years of drought and elevated operating costs that have led farmers and ranchers to liquidate their herds. Disruptions tied to New World screwworm (NWS) restrictions along the southern border have further restricted the domestic cattle supply.

On the other side of the beef price equation is demand, which traditionally climbs even higher during the summer grilling months. This increased demand goes back to the COVID-19 shutdowns when beef quickly became the meat protein of choice for the majority of consumers who were now cooking at home.

USDA’s September World Agricultural Supply and Demand Estimates (WASDE) report estimates that 2026 total U.S. beef consumption will be approximately 28.9 billion pounds. While that is slightly lower than earlier forecasts, it remains historically strong and well above pre-pandemic levels, highlighting the continued demand for beef from American consumers.

USDA’s September WASDE also projects total 2026 beef production is approximately 24.9 billion pounds. Despite productivity gains from improved genetics, management practices, and heavier cattle weights, domestic production continues to be constrained by historically tight cattle supplies and the lingering effects of years of drought, elevated costs, and herd liquidation.

It’s important to note that projected beef production remains roughly 4 billion pounds below expected consumption, a gap of nearly 14%. Put simply, Americans continue to consume more beef than U.S. farmers and ranchers currently produce. Closing that gap will require time, investment, and confidence from producers who are considering whether or not to retain heifers and rebuild the national cattle herd.

One way farmers and ranchers have helped fill the gap between supply and demand is by feeding cattle to higher weights. The average monthly live weight of all federally inspected cattle in March 2026 was a record-high 1,475 pounds. This follows the average monthly live weight rising every month since June 2025.

Heavier cattle mean fattier beef and a higher proportion of fat trimmings available for use in ground beef production. According to data from Oklahoma State University, ground beef makes up the largest portion of beef consumed in the United States, accounting for slightly less than 48% of all U.S. beef consumed in 2025.

Ground beef is made from a combination of fat trimmings and lean trimmings. Due to the abundance of fat trimmings from heavier domestic cattle, and the undersupply of lean trimmings, the U.S. imports lean trimmings to balance the scale. This, along with U.S. demand exceeding the domestic supply, has led to higher beef imports over the last few years. During the first quarter of 2026, the U.S. imported 562,000 metric tons valued at nearly $4.5 billion – up 18% from the same period last year and 122% from five years ago.

For beef prices to come down, ranchers have to rebuild the U.S. cattle herd, or consumer demand would have to drastically cool. Looking ahead, cattle producers still face substantial uncertainty that clouds herd rebuilding decisions. It takes about two years from the time a farmer decides to retain a heifer until she produces a calf of her own. This means if farmers begin retaining heifers now, it will be 2028 at the earliest before those heifers’ calves contribute to meaningful growth in cattle supplies.

Production Costs

We greatly appreciate American consumers unwavering demand for beef and understand the pressures families face at the grocery store because we face many of those same pressures on the ranch. The cost of feed, fuel, equipment, veterinary care, labor, and financing have all increased, and those are not expenses we can simply choose to do without.

Recent Administrative Actions on Beef Imports

I’m not alone when I say that I was caught off guard by the recent decision to waive the tariff rate quota (TRQ) on 300,000 metric tons of lean beef trimmings for 90 days. This beef will come from countries that have considerably lower production costs and animal welfare standards, and fewer regulations, which allow them to undercut cattle operations like mine.

The additional 300,000 metric tons are allocated across four specific tariff lines: fresh or chilled certified organic lean beef trimmings, fresh or chilled lean beef trimmings classified as "other," and their frozen counterparts. According to USDA’s Foreign Agriculture Service (FAS), through the first half of 2026, beef imports under these tariff lines have totaled more than $3 billion on just over 370,000 metric tons – with an average import value of nearly $8,200 per metric ton or $3.71 per pound. Importantly, by raising the TRQ for the 300,000 metric tons, the out-of-quota tariff rate of 26.4% is effectively waived. With an estimated current market value of $2.5 billion for 300,000 metric tons of beef trimmings, the waived tariff amount equates to nearly $650 million in waived tariffs for foreign-sourced beef – at the expense of hard-working American ranchers who are now selling calves at prices that are $300 to $400 below prices just two months ago.

To put it simply: the timing of this announcement could not have come at a worse time. Many ranchers are currently deciding whether to retain heifers, purchase breeding stock and begin rebuilding their herds. Those are not short-term decisions. When a rancher retains a heifer, they are choosing not to market that animal today in exchange for the possibility of future calf crops years down the road. In many cases, it takes multiple years and multiple calf sales before that investment pays for itself. If farmers and ranchers lose confidence that those investments will earn a return, they simply will not expand their herds.

Rebuilding the Herd

To better understand why cattle herd numbers matter and how they affect grocery store prices, as well as how policy decisions can affect future beef supplies, it’s helpful to understand the entire production cycle.

The process begins when a cow gives birth to a calf. For the first several months of its life, the calf remains with its mother, nursing, and grazing while receiving care from farmers. The calf is typically weaned (removed from the care of its mother) at 6 to 10 months of age, when it weighs between 500 and 700 pounds. At this stage, farmers have a big decision to make; they can either retain the calf for breeding or sell it to begin the beef production process. Approximately 70% of cattle growers have calves in the spring, which means they are marketed in the fall.

Option #1: Retain the calf for breeding purposes

By retaining the heifer (female) calf, the rancher chooses to expand their herd by way of the heifer’s future calves. In doing so, they forego any revenue they would have received from feeding that animal for beef production. Retention rates have dwindled in recent years due to ongoing drought and rising operating costs, driving ranchers to market their heifer calves for beef production rather than keep them for herd expansion.

At about 12-15 months of age, the heifer will be bred. Ranchers breed their heifers to bulls selected for a variety of genetic factors to maximize the beef production potential while also prioritizing the likelihood of a safe and healthy gestation (pregnancy) period. Once bred, it takes 283 days for a heifer to produce a calf. Once the calf is born, its mother (now considered a cow) will feed and care for it until it reaches its desired weaning weight. At that point, the rancher again decides whether to retain the calf for breeding purposes or market it for beef production. As for the cow, the rancher will typically opt to repeat the cycle, waiting about 85 days to breed her again to maintain a yearly calving interval.

A healthy, well-cared-for beef cow can typically produce calves until they are roughly 10 years old. Once the cow reaches that age, the rancher will usually sell it to a feedyard or finishing operation, where it is then sold to a meatpacker for processing.

The retention of bull (male) calves for breeding purposes is less common, as ranchers typically seek to breed their heifers and cows on bulls from other herds. However, if a rancher raises and sells breeding animals with superior genetics (known as seedstock) to other ranchers, they might choose to raise the bull calf separate from their herd, with the hopes of marketing the bull’s semen to other beef operations for breeding purposes.

Option #2: Put the calf into the beef supply chain

If the farmer decides the calf will enter the beef supply chain, it will most likely be placed in a feedlot or on pasture to grow. As the animal develops, it gains weight to around 900 pounds over the next six to eight months, depending on the animal’s weight when this step begins. At about 900 pounds and roughly 18 months of age, the animal is then typically finished in a feedlot where it receives a carefully balanced diet designed to support growth and high-quality beef. Today’s cattle are often raised to weights approaching 1,500 pounds before being marketed.

Once cattle reach the desired weight, farmers and ranchers sell them to meat processors (sometimes called packers). The beef is then graded for quality, processed into larger wholesale cuts, and shipped as boxed beef throughout the food system. From there, it moves to grocery stores, restaurants, food distributors and export markets around the world.

The final step is the one consumers see every day. Beef is cut into familiar products such as steaks and roasts and turned into ground beef for sale at grocery stores and restaurants.

Domestic Markets

I mentioned earlier about premiums, and there is no better premium than a USA label. We are thankful that the President and his Administration are continuing the voluntary Product of the USA label that was proposed and finalized under his predecessor.

This voluntary label can create increased opportunities for ranchers like me to capture additional premiums within the market. Under the 2026 standards and criteria for the voluntary label, the Trump Administration empowered Americans — producers and consumers alike — to leverage the power of the free market.

Even though consumers often face sticker shock at the grocery store, data shows price has not discouraged consumers from purchasing muscle cuts of beef. That consumer loyalty is one of the reasons ranchers have confidence in the future of our industry. In fact, demand has increased year over year. The consistently improved quality of beef correlates with an inelastic consumer demand that has been unmatched by other grocery staples. In reality, very little that is done in the public policy arena compels retailers to lower prices.

Suffice it to say, consumers both in the U.S. and around the world cannot get enough of the high-quality beef produced by American ranchers. We must continue to pursue open trade opportunities that allow us to supplement our country's demand for lean beef. Producing high-quality American beef and bolstering the market for primal cuts such as center-plate proteins, equips producers to capitalize on premier retail opportunities that are expanding like never before.

Durable regulatory and policy decisions have long been a hallmark of federal ag policy that has provided much-needed sustainability for ranchers and their rural communities. It is legislation like the farm bill that has provided the framework for farm economies and our food systems.

As both a rancher and a consumer, I certainly recognize that we must carefully balance producers’ bottom lines and the affordability of our nation’s food supply. The challenge is that cattle production operates on a biological timeline that cannot be rushed. Rebuilding the national herd requires long-term investments and confidence in a return on those investments. Rebuilding the U.S. cattle herd demands predictability just as our markets and consumers demand consistency, and reactionary policy decisions often cause unrealized turbulence rather than realized gain.

Thank you for having me here today, and I am happy to answer any questions the Committee may have.

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Farmers and ranchers are in Washington, DC this week, urging senators to pass the farm bill. Chad Smith tells us farmers are targeting all 100 senate offices.

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Key Takeaways

• Crop revenue projections are mixed but mostly improved. September's WASDE raised per-acre revenue estimates for corn and soybeans, along with rice, barley and oats. But peanuts, cotton, wheat and sorghum revenue projections fell from USDA’s May estimates.

• Post-Hormuz input cost shocks for diesel and fertilizer are eating into any revenue gains. Since the Strait of Hormuz closure in early March, fertilizer and diesel costs have surged nationally. Diesel prices alone are up 45% since the spring and, absent a resolution of geopolitical risks, including recent disruptions in the Bab al-Mandeb Strait, input costs are expected to keep climbing as farmers enter into harvest.

• Breakeven remains out of reach for all major row crops. Crops with falling revenue projections now face even deeper losses due to higher diesel and fertilizer expenses. Crops with rising revenue projections, like corn and soybeans, may offset some added costs, but across the board, the record-high –input cost environment means no major row crop is projected to clear breakeven for the 2026/27 marketing year.

Crop Revenue Expectations Are Mixed

USDA’s recent September World Agricultural Supply and Demand Estimates (WASDE) provided the first field-level observations and projections for planted acres, crop yields and the corresponding season average prices for major row crops for the 2026/27 marketing year. The national average revenue per harvested acre for corn is now projected at $857, up more than $50 from the May WASDE projections. For soybeans, the second-largest crop in the U.S., the national average revenue per harvested acre is projected at $634 and up $30 from the May forecast. Higher revenues, relative to the May estimates, are also projected for rice, barley and oats, while lower revenues are projected for peanuts, cotton, wheat and sorghum.

Higher Revenues May Not Offset Higher Diesel and Fertilizer Expenses

While season average corn prices approaching $5 per bushel and soybean prices near “beans in the teens” would normally be welcome news in farm country, since early March’s closure of the Strait of Hormuz, cost pressures in agriculture have only intensified – with total production expenses expected to reach nearly $500 billion in 2026.

Fertilizer expenses for 2026 are projected at a record $40 billion, up 15%, or $5 billion from the previous year. Similarly, fuel expenses, including diesel, are projected to reach a record $22 billion this year, up 29% or $5 billion from 2025. Meanwhile, persistent inflation is expected to result in another interest rate increase during the upcoming Federal Reserve Open Market Committee meeting – meaning interest expenses, which are currently projected at a record $34 billion, are likely to increase even further as farmers begin financing discussions with lenders in advance of the 2027 crop year.

Based on USDA’s most recent cost-of-production estimates, and recent trends in diesel prices (up 45% on average from the spring), American Farm Bureau analysis indicates that as a result of fertilizer and diesel price shocks, productions costs are nearly $30 per acre higher for corn, $14 per acre higher for soybeans, $30 per acre higher for cotton and more than $70 per acre higher for rice compared to USDA’s pre-Hormuz input cost projections. For some crops, these higher per acre input cost projections more than offset any projected gains in crop revenues because of higher crop prices.

Higher Revenues, But Still Not Above Breakeven

For crops that have lower revenue projections compared to the spring (cotton, peanuts, wheat and sorghum), the higher input costs hit even harder and result in even deeper losses for the 2026/27 crop year than originally forecast.

For crops with higher revenue projections like corn and soybeans, higher prices – despite potentially lower crop yields – may potentially offset some of the higher input costs resulting from the closure of the Strait of Hormuz. Importantly, even with higher revenue projections for some crops, absent even higher crop prices, the record-high input cost environment means breakeven above total costs remains elusive for all major row crops for the 2026/27 marketing year – marking four consecutive years of returns below total costs.

Summary

Taken together, September’s WASDE reveals a farm economy caught between improving crop prices and an input cost environment that continues to be subject to inflationary pressures. While some crops may see some relief due to higher revenue projections, those gains are being significantly eroded by the surge in fertilizer and diesel expenses tied to the Strait of Hormuz closure and Bab al-Mandeb Strait disruptions. The net result is that despite recent price optimism, unless prices improve even further, no major row crop is projected to clear breakeven for the 2026/27 marketing year, further underscoring just how squeezed farm margins remain in this high-cost and geopolitically unstable economic environment.

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Four start-up companies offering agricultural innovations have advanced to compete for a top prize of $100,000 in the 2027 Farm Bureau Ag Innovation Challenge. The American Farm Bureau Federation, in partnership with Farm Credit, continues to elevate the importance of entrepreneurship in agriculture through the contest.

“The future of agriculture is being shaped by innovators like these four finalists,” said AFBF President Zippy Duvall. “They are transforming bold ideas into practical tools and technologies that will help farmers and ranchers thrive while continuing to provide the food, fuel and fiber we all rely on.”

This is the 13th year of the Ag Innovation Challenge, which was the first national business competition focused exclusively on rural entrepreneurs launching agriculture- and food-related businesses. Farm Bureau is offering $145,000 in start-up funds throughout the course of the competition.

Ten semi-finalist teams participated in a virtual pitch round with three judges representing various sectors of the agricultural supply chain. The four finalist teams advancing to the final round each received an initial prize of $10,000 and are listed below.

• Seismi, Nebraska
• Nave Analytics, Nebraska
• Swinergy, Minnesota
• Good Agriculture, Georgia

The finalist teams will compete at the AFBF Convention on Sunday, Jan. 10, in front of a live audience of Farm Bureau members, investors and industry representatives, competing for top titles and prizes:

• Farm Bureau Ag Innovation Challenge Winner, total of $100,000
• Farm Bureau Ag Innovation Challenge Runner-up, total of $25,000

Farm Bureau recognizes and supports these rural businesses with generous funding provided by sponsors Farm Credit, Bayer Crop Science, John Deere, Farm Bureau Bank, Farm Bureau Financial Services, Google, T-Mobile and ClearPath.

To learn more about the Challenge visit fb.org/challenge.

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This Farm Bureau Market Intel was written by American Farm Bureau Federation in partnership with the American Bankers Association, American Soybean Association, Farm Credit Council, National Association of Wheat Growers, National Corn Growers Association, National Sorghum Producers and USA Rice.

Key Takeaways

• The farm economy has changed significantly in the eight years since the 2018 farm bill was written.

• Farm production expenses have risen sharply, with higher interest rates increasing the cost of financing operations and capital purchases such as equipment and farmland.

• Farm debt continues to climb as producers finance increasingly expensive inputs and assets, while working capital has come under pressure.

• Higher farmland values have strengthened sector balance sheets, but rising land values and cash rents also increase the cost for beginning farmers or farmers who want to expand.

• These trends reinforce the need for farm policy that reflects the current costs, risks and capital requirements of agriculture rather than those of nearly a decade ago.

The 2018 farm bill was written for a very different farm economy. Since then, farmers and ranchers have navigated a global pandemic, supply chain disruptions, historic inflation and rapidly rising interest rates, resulting in a substantial increase in the cost of producing food, fiber and fuel.

While commodity prices have increased at times, those increases do not cover the cost of production. Across several key measures, agriculture has become substantially more expensive and capital intensive since 2018.

Production Costs Outpace Commodity Prices

One of the clearest measures of the changing farm economy is the relationship between the prices farmers receive for their products and the prices they pay for what they need to grow their crops. For crop farms, USDA’s prices paid for production inputs index stood at 110.8 in July 2018 and reached 153.4 in July 2026, an increase of more than 38%. Over the same period, the prices received for crop products index increased from 86.5 to 107.0, a gain of about 24%. This widening difference helps explain why higher commodity prices do not necessarily mean stronger margins. When input costs rise faster than the value of what farmers sell, break-even prices increase and producers have less room to absorb market declines or unexpected expenses. Productivity gains can offset some of these higher costs for growers able to increase yields, while producers facing lower yields experience even greater margin pressure.

Production Expenses Are Nearly $150 Billion Higher

The overall cost of operating a farm has risen sharply since the 2018 farm bill was enacted. In nominal terms, total U.S. farm production expenses increased from approximately $343 billion in 2018 to a projected $492.8 billion in 2026, an increase of nearly 44%, or about $150 billion.

Even after accounting for inflation, production expenses remain substantially higher. Measured in 2026 dollars, expenses increased from approximately $445.6 billion in 2018 to $492.8 billion in 2026, a real increase of more than $47 billion, or nearly 11%.

Higher expenses are spread across nearly every part of the farm budget. Fertilizer, fuel, labor, machinery and other costs have all contributed to the increase. The result is that producers need substantially more capital today simply to plant a crop, raise livestock and maintain normal operations.

Farm Debt has Increased About 50%

Farm debt has continued to grow alongside those higher capital needs. Total farm sector debt stood at approximately $402.6 billion in 2018 and is forecast to reach $605.1 billion in 2026, an increase of about 50%. USDA expects both real estate and non-real estate debt to increase in 2026.

Debt itself is not necessarily a sign of financial weakness. Agriculture requires substantial investment; Farmers borrow to finance land – often the largest share of a farm’s assets, equipment and operating expenses. But the combination of more debt and higher interest expenses increases debt-servicing requirements and leaves producers more exposed when margins tighten.

Interest Expenses Have Increased More Than 60%

It’s not only more costly to operate a farm or ranch, it’s also more expensive to borrow money to finance those operations. Higher operating costs have coincided with a much more expensive borrowing environment. Farm sector interest expenses increased from approximately $20.7 billion in 2018 to a projected $33.8 billion in 2026, a nearly 63% increase. Farming is a capital-intensive industry, and producers regularly depend on credit to finance land, equipment and annual operating expenses. The increase in interest expenses reflects more than higher interest rates; rising land, equipment and operating costs have also increased producers’ borrowing needs. Together, larger loan balances and higher rates have made financing substantially more expensive.

Land Values Have Risen Nearly 46%

Farmland values have been one of the strongest parts of the agricultural balance sheet. Average U.S. cropland values increased from approximately $4,130 per acre in 2018 to $6,020 per acre in 2026, an increase of nearly 46%. USDA also estimates average farm real estate values reached $4,500 per acre in 2026.

For landowners, rising values increase equity and can strengthen borrowing capacity. But land is not a particularly liquid asset and higher land values can make a farm look stronger on paper without necessarily providing the cash needed to cover operating expenses or service debt. Rising values also make it more expensive for beginning farmers to enter agriculture and for existing operations to expand.

Cash rents have moved higher as well. Average U.S. cropland cash rent increased from about $138 per acre in 2018 to $160 per acre in 2026, roughly a 16% increase. Higher rents represent another fixed expense that must be covered regardless of commodity prices or yields.

Farmers Need a Farm Bill

The farm economy has changed substantially since Congress enacted the 2018 farm bill. Total production expenses are nearly 44% higher, interest expenses have risen nearly 63%, farm debt has increased about 50%, and cropland values have climbed nearly 46%.

At the same time, prices paid by crop farmers to grow crops have risen considerably faster than prices received when selling crops. Strong land values have helped support farm balance sheets, but they do not eliminate the cash flow challenges created by higher operating costs, borrowing expenses and break-even prices.

The result is an agricultural economy that requires significantly more capital to operate than it did in 2018. Farmers need a modernized farm bill that reflects the costs, risks and financial realities they face today rather than those that existed nearly a decade ago. Congress must pass a five-year farm bill this year to deliver support to farmers and ranchers across the country who produce the food, fiber and fuel for America’s families.

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USDA's World Agricultural Supple and Demand Estimate provides a look into crop yields across farm country. Stephanie Hoff gets the latest analysis. 

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Key Takeaways

• Farm bill credit programs help farmers and ranchers access financing when they cannot obtain sufficient credit through traditional commercial lenders.

• Access to credit is increasingly important as farmers face historically high production costs and multiple years of tight or negative margins.

• In fiscal year 2025, FSA obligated $6.74 billion across 27,792 farm loans, up 25% in dollars and 13% in the number of loans from fiscal year 2024.

• Beginning farmers accounted for 15,552 loans totaling $3.53 billion in fiscal year 2025, representing approximately 56% of all FSA farm loans and 52% of dollars obligated.

Farming requires significant capital. Producers pay for seed, fertilizer, feed, fuel and other inputs months and sometimes years before crops are harvested or livestock are sold. Buying farmland, machinery and other long-term assets often require even more financing.

Those needs are growing. USDA projects total production costs for major field crops to reach new highs in 2027. At the same time, commodity prices have not kept pace with expenses. This leaves farmers operating below break-even, or at a loss per acre. Higher costs and several years of weak margins can drain working capital and weaken farm balance sheets, making access to affordable credit increasingly important.

Most agricultural credit comes from private lenders, but not every producer can qualify for enough commercial financing. Beginning farmers may have limited equity or credit history, while established farms can face credit challenges after natural disasters, poor yields or several years of low returns. Title V, the credit titleof the farm bill, helps fill some of these gaps through farm loan programs administered by USDA's Farm Service Agency, or FSA.

How Farm Loan Programs Work

FSA provides credit in two main ways. Direct loans are made and serviced by FSA and generally serve farmers who cannot obtain sufficient commercial financing at reasonable rates and terms. Guaranteed loans are made by private lenders, with FSA guaranteeing up to 90% of most loans and up to 95% in certain cases. This reduces the lender’s risk and can help farmers qualify for financing.

Within those structures, FSA offers several types of financing.

• Farm Ownership Loans provide longer-term financing to purchase or enlarge farms, construct or improve buildings, make certain conservation improvements and cover other eligible real estate expenses.

• Operating Loans provides working capital for the ongoing costs of farming. Eligible uses can include seed, fertilizer, feed, livestock, fuel, equipment and other production expenses.

• Microloans provide smaller direct loans through a more streamlined application process. They provide another financing option for smaller farms, beginning producers and operations with more limited capital needs.

• Emergency Loans provide financing to eligible producers following qualifying natural disasters. They can be used to restore or replace essential property, cover certain production costs and help producers recover from disaster-related losses.

Together, these programs provide different pathways to credit depending on a producer's financing needs and ability to obtain private capital. 

FSA Lending Increased Sharply in 2025

In fiscal year 2025, FSA obligated $6.74 billion across 27,792 farm loans, compared with $5.39 billion across 24,555 loans in fiscal year 2024. Total dollars obligated increased 25%, while the number of loans increased 13%. The average amount obligated per loan also increased, rising from approximately $220,000 in fiscal year 2024 to nearly $243,000 in fiscal year 2025.

Farm ownership lending accounted for most of the dollars obligated. FSA provided $2.33 billion in direct Farm Ownership Loans and $2.09 billion in guaranteed Farm Ownership Loans. Combined, ownership financing totaled approximately $4.42 billion, or nearly two-thirds of all FSA farm loan dollars obligated during the year.

Operating loans, however, represented the largest share of lending by number. FSA made 14,170 Direct Operating Loans and 2,291 Guaranteed Operating Loans in fiscal year 2025. Combined, operating loans accounted for nearly 60% of all FSA farm loans.

Guaranteed lending experienced particularly strong growth. Guaranteed Operating Loan obligations increased 37% from fiscal year 2024, while Guaranteed Farm Ownership Loan obligations increased 41%. The number of guaranteed operating and ownership loans increased 21% and 24%, respectively.

Emergency lending remained a relatively small share of total FSA activity but increased sharply. Emergency Loan obligations rose from approximately $8.5 million in fiscal year 2024 to $26 million in fiscal year 2025, while the number of loans increased from 43 to 177.

Beginning Farmers Are Major Users of FSA Credit

FSA lending is especially important for beginning farmers, who often have less equity, fewer assets for collateral and shorter credit histories than established producers.

In fiscal year 2025, FSA obligated 15,552 loans totaling $3.53 billion to beginning farmers. They accounted for approximately 56% of all FSA loans and 52% of total dollars obligated. Beginning farmers were particularly active in direct lending, receiving about 55% of direct Operating Loans and 65% of direct Farm Ownership Loans. Farm ownership financing accounted for more than 70% of all FSA dollars obligated to beginning farmers, totaling approximately $2.51 billion.

The data highlights the role FSA credit programs play in helping new producers establish operations. Veteran farmers also received 787 loans totaling approximately $141 million in fiscal year 2025. (Note, that borrower classifications can overlap.)

Rising Costs Put More Pressure on Existing Loan Limits

The 2018 farm bill increased direct Farm Ownership Loans to $600,000 and direct Operating Loans to $400,000, while establishing a $1.75 million statutory base for guaranteed ownership and operating loans, adjusted annually for inflation.

Since then, land values and production costs have risen substantially. USDA projects record-high production costs for several major crops in 2027, meaning existing loan limits will cover a smaller share of producers' capital and working capital needs.

The Agricultural Act of 2026 would significantly increase FSA loan limits:

• Direct Farm Ownership: $600,000 to $850,000

• Guaranteed Farm Ownership: $1.75 million statutory base to $3.5 million

• Direct Operating: $400,000 to $750,000

• Guaranteed Operating: $1.75 million statutory base to $3 million

• Microloans: $50,000 to $100,000

Higher ownership limits would provide more financing capacity for farmland and long-term assets, while higher operating limits would better reflect the growing working capital needed to cover annual production expenses.

The Bottom Line

Farm credit is essential to keep farms operating and investing for the future. Producers need financing to cover annual production costs and purchase land, equipment and other long-term assets, particularly when cash flow is tight.

FSA farm loan programs provide an important source of credit when commercial financing is not sufficient. In fiscal year 2025, FSA obligated nearly $6.75 billion, 25% more than the previous year, and beginning farmers accounted for more than half of all loans.

But the cost of farming has changed substantially since current loan limits were set. Record production expenses, higher land values and several years of tight margins mean those limits do not stretch as far as they once did. Updating the credit title in the next farm bill would help ensure ownership, operating and microloan programs better reflect the capital needs of today’s farm economy. For farmers trying to stay in business, expand an operation or get started in agriculture, access to adequate and affordable credit can be the difference between an opportunity and a closed door.

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USDA estimates that farmers will spend more money on interest payments in 2026, after adjusting for inflation, than at any other time on record. Stephanie Hoff learns more.

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Launched as single trailer with two modules to bring agriculture to students in 20-30 schools annually, Idaho Farm Bureau’s Moving Agriculture to the Classroom (MAC) Trailer program has grown to include three trailers and four modules that engage more than 11,000 students in 75 schools each year.

Designed by a committee of Farm Bureau parents in their 30s to provide interactive modules with the “wow factor,” the lessons are state standard aligned, easy to transport and free for schools.

The program launched with one trailer and two modules: dairy, the state’s top commodity by value, and wheat, which is grown throughout the state.

Beefing up the Modules

Not long after launch, the program expanded with a water module showing how snowmelt and wet springs can cause flooding and how dams and reservoirs store water for use during dry seasons.

In 2023, a beef module was added, illustrating the life cycle of cattle from birth to harvest and highlighting the array of beef byproducts used in cosmetics, paint, medical supplies and sports equipment.

Counties have also developed additional modules related to farm safety, forestry and conventional and organic farming for their fairs and events.

Going Big(ger)

Each module is anchored by an eight-page “Big Book,” with each 4x4-foot page showcasing a different commodity. The students aren’t just reading about agriculture though, they experience it hands-on through activities that allow them to shake cream into butter and milk a life-size cow during the dairy lesson; grind wheat into flour and make pancakes in the wheat module; watch a valley flood and then be saved by a dam in the water module; and explore the many byproducts of beef that go far beyond food.

Far surpassing the 20-30 schools Idaho Farm Bureau hoped to bring their one trailer to annually, today the program reaches more than 75 schools and 11,000 students each year and includes two more trailers, and additional Big Books and hands-on learning tools.

The MAC trailer is also a popular attraction at 12 county fairs and the Idaho State Fair, where more than 25,000 children interact with the exhibits annually. Idaho Farm Bureau also sponsors the state fair’s largest agriculture attraction, giving 220,000 attendees the chance to connect with farm animals and agriculture displays.

Ag Education as a Member Engagement Opportunity

Idaho Farm Bureau’s MAC Trailer program serves the dual purpose of bringing Idaho agriculture to students in an interactive format and providing members who have aged out of the Young Farmers & Ranchers program a meaningful opportunity to remain involved with the organization by sharing agriculture in their children’s classrooms and local schools.

In addition, students who participated in MAC activities are returning as FFA members to help teach modules. And some are choosing careers in agriculture and leadership roles within Farm Bureau.

State Awards of Excellence

Idaho Farm Bureau’s Moving Agriculture to the Classroom Trailer program was recognized with a 2026 Award of Excellence in the Engagement and Outreach category. The award was presented at the 2026 American Farm Bureau Convention in January in Anaheim.

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