NASHVILLE, TN – Southern crop producers continue facing deteriorating financial conditions in 2026, while livestock operations remain comparatively stronger, according to Mississippi State University agricultural economist Kevin Kim.
A mid-year Extension survey found 73% of respondents reported worsening liquidity and solvency among crop producers, while fewer than 10% saw improvement. About 46% also reported lower regional farm income compared with last year.
Higher fuel costs and consecutive years of weak crop returns are eroding working capital and borrowing strength. Agricultural loan rates for operating, intermediate-term and farmland debt remained near 7.5%, slightly above levels reported six months earlier.
Livestock producers showed improved financial conditions for a second straight survey period, supported largely by stronger cattle prices. Farmland values also remained resilient despite weaker farm profitability, with both cropland and pastureland values increasing from 2025.
Respondents generally expect land values to remain stable or rise, but worsening crop cash flow and repayment pressure point to continued financial strain across the region.
Farm-Level Takeaway: Southern crop producers remain under growing liquidity pressure even as livestock returns and farmland values provide some support.