Credit quality remains a concern for agricultural lenders. Speaking at the Agricultural Bankers Conference in Minneapolis, Farmer Mac Chief Economist Jackson Takach says lenders continue supporting farmers despite financial pressures. “Lenders are concerned about the portfolio credit quality, but they’re still showing up to support the liquidity needs of their customers.” The annual survey found lenders expect 60 percent of agricultural borrowers to be profitable in 2026, exceeding earlier expectations. Takach says government payments are contributing to that outlook. “Yes, profits are up, but some of that is driven by government support program payments, not fundamentals,” Takach said. Most lenders also expect farmland values to remain relatively stable over the next 12 months.
