Ag lenders expect only about half of U.S. farm borrowers to turn a profit in 2025 (AgWeb): According to a new survey by American Bankers Association and Farmer Mac, only 52% of U.S. farm borrowers are expected to be profitable this year — a sharp drop in lender expectations.
Lenders say the pressures on farm income come from soft commodity prices, elevated input and interest costs, and shrinking working capital.
Operations focused on grains and cotton are seen as most vulnerable, while livestock farms are faring relatively better thanks to stronger demand.
Moreover, nearly 93% of lenders anticipate farm debt will increase over the next year — a sign of rising financial stress in the sector.
Finally, lenders expect profitability to slide further in 2026, potentially resulting in fewer than half of borrowers being profitable — which would mark the lowest share since 2020.
Farmers brace for big jumps in healthcare costs as ACA tax credits fade (Civil Eats): More than a quarter of U.S. farm households depend on health insurance purchased through the Affordable Care Act (ACA) marketplace—about three times the national average.
Premiums paid by these farmers averaged approximately $888 in 2025, but with the expiration of Biden-era enhanced tax credits at year-end, that figure could rise to around $1,904 for 2026.
This spike in insurance costs comes amid tighter margins for farmers dealing with tariffs, extreme weather, and rising input costs—making healthcare affordability a serious concern for farm operations.
Facing the premium increases, some farmers are weighing alternatives such as catastrophic coverage, off-farm employment to access employer plans, or dropping coverage entirely—decisions that could also ripple through rural health systems already under financial strain.
The path forward is uncertain: while legislative efforts exist to extend the tax credits, no guarantee of action has yet emerged, leaving many farm households in limbo as they shop for 2026 plans.