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Economist says farmers are borrowing more to operate

An agricultural economist says more farmers are borrowing money to keep operating.

Jacqui Fatka with CoBank tells Brownfield most farmers built up some working capital in 2022, but most of that is now gone. “We have seen a greater need for lending, whether it’s from operating lines, as well as using lines of credit. Most of that is as they’ve worked through that working capital, now they are looking to other financing.”

Fatka says a large number of 2025 operating loans were lumped into 2026 loans because of low commodity earnings, but most farmers are not worried about repaying those larger loans. She also says the high cost of fertilizer is impacting farm finances. “I think we’re going to get through this season and we’re probably going to do it with a little bit less product because 20-25 percent of producers might not have had all of their product secured for this year.”

Fatka says that, along with lenders, more cooperatives, ag retailers, and equipment companies are offering financing to farmers.