(NAFB.com) – A new USDA forecast suggests growth in U.S. farm wealth will slow in 2026 while debt continues to climb, reflecting ongoing financial pressures in the agricultural sector. In its first Farm Income and Wealth Statistics update of the year, USDA’s Economic Research Service projects that farm assets and equity, the difference between total assets and total debt, will rise in 2026 but at the slowest pace since 2019–20. Non-real estate assets, including crop and livestock inventories, are expected to decline, even as investment in machinery and vehicles grows. Conversely, farm debt is forecast to accelerate for the third time in four years, raising concerns about solvency for many producers. Key financial ratios also point to tighter production returns relative to asset values. Economists said the outlook underscores persistent challenges facing farmers as they balance high costs and variable commodity markets heading into the 2026 production cycle.
