September 24, 2026
By Gregory Van Thuyne | President and CEO
Farm Plus Financial — Dallas, Texas
(970) 422-1900 | (866) 929-5585

Higher interest rates, rising operating costs and tightening farm profitability are creating a more complicated financing environment for agricultural producers. In a market like this, experience matters.

At Farm Plus Financial, agricultural lending is not simply another category of commercial finance. Our team has spent years working in agricultural banking, and many of us grew up working on farms and around agricultural operations.

That experience provides an important perspective when working with farmers and ranchers facing today’s economic challenges. We understand that a farm loan is not simply about an interest rate or a balance sheet. It is about building a financial structure that allows an operation to continue generating cash flow and remain viable for years to come.

USDA currently forecasts inflation-adjusted U.S. net farm income to decline 5.5% in 2026, while total production expenses are projected to rise 4.5%. Those pressures are not being felt equally across every commodity or region, but they reinforce the importance of evaluating financing within the context of each individual farm operation. View the latest USDA Farm Sector Income Forecast.

As profitability becomes more challenging across portions of the agricultural economy, working with an experienced agricultural lender becomes increasingly important.

Harvest Season Can Be an Opportunity to Review Agricultural Financing

Fall is traditionally a slower period for agricultural lending as many producers turn their attention toward harvest.

That slowdown can also make this an opportune time for farmers and ranchers to begin evaluating their financing needs before lending activity increases later in the year.

Agricultural financing requires specialized professionals, including farm lenders and agricultural appraisers, and there are only so many experienced professionals available in the marketplace. Beginning the conversation early can provide additional time to evaluate an operation, consider available farm loan programs and financing structures, and determine what makes sense before the next borrowing cycle accelerates.

This may be particularly important this year as producers contend with elevated input costs and pressure on farm profitability.

Diesel is one example. U.S. on-highway diesel averaged approximately $6.53 per gallon for the week of September 21, according to the U.S. Energy Information Administration. View current U.S. diesel prices from the EIA.

For operators already facing tighter margins, those additional expenses can quickly affect working capital and cash flow.

Farmers anticipating additional working-capital needs may also want to review available farm operating lines of credit before those needs become urgent.

Farm Debt Consolidation Requires a Long-Term Strategy

As agricultural margins tighten, farm debt consolidation and agricultural refinancing may become increasingly important conversations for some producers.

Debt consolidation can potentially provide an agricultural operation with greater cash-flow flexibility by restructuring shorter-term obligations into longer-term financing. But simply moving debt does not solve an underlying financial challenge.

The objective should be to create a sustainable financial structure.

At Farm Plus Financial, we want borrowers to be positioned to succeed not only one or two years from now, but five years from now and beyond.

That means understanding why debt accumulated, evaluating the earning potential and assets of the operation, and developing an agricultural loan structure designed around realistic cash flow.

USDA forecasts total U.S. farm-sector debt to reach approximately $605.1 billion in 2026, an increase of 4.6% from 2025. That makes thoughtful debt management particularly important for producers evaluating their next financing decision.

When refinancing operating losses, short-term obligations or existing farm debt, working with professionals who understand agricultural cycles can be critical to avoiding a continuing debt spiral.

The goal should not simply be refinancing debt. The goal should be creating a stronger path forward for the operation.

Farmers considering restructuring existing obligations can learn more about Farm Plus Financial agricultural refinancing and debt consolidation options.

Interest Rates Remain a Major Factor for Agricultural Borrowers

Interest rates continue to present another challenge.

At its September 15–16 meeting, the Federal Reserve increased its target range for the federal funds rate by 25 basis points to 3.75%–4.00%. Read the September Federal Reserve statement.

For farmers evaluating farm loans, agricultural real estate financing or farm refinancing, the current rate environment makes loan structure increasingly important.

Interest rate matters, but it should not be the only consideration. Amortization, loan term, cash-flow requirements, prepayment provisions and the long-term needs of the farming operation all play a role.

Farm Plus Financial offers a range of agricultural loan programs, including different term, rate and payment structures designed for qualifying agricultural borrowers.

That is another reason experienced agricultural lending guidance becomes especially valuable during uncertain economic periods.

Agriculture Is Navigating a Period of Change

Between elevated interest rates, increased production expenses, energy costs and pressure on portions of farm income, producers are operating in a complex environment.

Those conditions make proactive financial planning increasingly important.

Rather than waiting until a financing need becomes urgent, this can be an appropriate time to review existing agricultural debt, evaluate upcoming capital needs and understand what financing options may be available.

At Farm Plus Financial, our focus is agricultural lending. Our experience allows us to look beyond the immediate transaction and understand the realities of operating a farm or ranch through changing commodity markets, interest-rate environments and agricultural cycles.

Because successful agricultural financing should accomplish more than closing a loan.

It should help create a stronger financial foundation for the farm’s future.

Talk With an Experienced Agricultural Lender

If you are considering a farm refinance, agricultural real estate loan, farm debt consolidation, operating line of credit or other agricultural financing, now may be a good time to begin the conversation.

Farm Plus Financial works with farmers and ranchers nationwide to develop financing structures designed around the individual needs of their operations.

Ready to Discuss Your Financing Needs?

Complete the Farm Plus Financial contact form to connect with an agricultural lending specialist, or learn more about our farm loan process before getting started.

Call Farm Plus Financial:
(970) 422-1900
(866) 929-5585

Market information reflects conditions as of September 24, 2026 and is provided for general informational purposes.