Crop Production NAICS 111

Jun 23, 2026 - Rising Demand For Farm Loans

• Rising fuel and fertilizer costs tied to the Middle East conflict are stressing US farmers financially and increasing demand for agricultural loans, The Wall Street Journal reports. According to a Federal Reserve Bank of Chicago survey, farm loan repayment rates declined for the tenth consecutive quarter while loan demand continued to grow. Higher input costs are prompting some producers to reduce fertilizer use, switch crops, delay equipment purchases, and postpone land acquisitions. Lenders report more borrowers falling behind on payments and are increasing reserves for potential loan losses. The challenges come on top of weak commodity prices, export disruptions from tariffs, and regional drought conditions that have already strained farm finances. While government support programs and loan guarantees provide some protection, many farmers have depleted working capital reserves and remain vulnerable to further cost increases. Farmers' financial stress is likely to persist if input costs remain high.
• Weak commodity prices and ongoing drought conditions are prompting some enterprising crop producers to diversify income through social media and online content creation, The Wall Street Journal reports. For several of the farmers profiled by WSJ earnings from YouTube, sponsorships, and branded merchandise now exceed profits from crop production. For example, Montana grain producers at Welker Farms generate six-figure annual income from their online presence, helping offset low crop returns. The trend reflects broader financial pressures facing agriculture, as lenders expect fewer than half of producers to be profitable this year and most farm households rely on off-farm income. While social media success is not practical for most producers, the article underscores the importance of income diversification during challenging market conditions. Additional revenue streams can help crop producers manage volatility, support family operations, and reduce dependence on crop prices and weather-related risks.

• Soaring fertilizer prices driven by the Iran war are creating significant risks for US crop production during the critical spring planting season, NPR reports. Disruptions in the Strait of Hormuz have halted nearly half of global urea exports, causing nitrogen fertilizer prices to spike about 30% and creating an expected US shortage of roughly 2 million tons. Higher input costs are forcing farmers to make difficult planting decisions. Some may reduce fertilizer application, lowering crop yields, while others may shift acreage away from nitrogen-intensive crops like corn toward soybeans, which require less fertilizer. In extreme cases, farmers may leave fields unplanted. Supply constraints are compounded by limited global production capacity and shortages of key inputs like natural gas and sulfur. Elevated fertilizer costs and shortages threaten to reduce crop output, alter planting patterns, and increase volatility in agricultural production in the near term.
• The USDA’s closely-watched Prospective Plantings report, released in late March, reveals farmers’ intentions for planted acreage for principal crops in 2026. Among the key takeaways is an expectation for corn acreage to decline from 2025 highs, with farmers intending to plant 95.3 million acres of corn in 2026, down 3% from last year’s elevated levels, reflecting tighter margins and higher fertilizer costs. Soybean acreage is expected to expand modestly, with soybean plantings reaching 84.7 million acres, up 4% year over year, supported by lower nitrogen requirements, strong domestic crush demand, and crop rotation following large corn acreage in 2025. Wheat plantings decline to a record low 43.8 million acres, while cotton increases modestly. Market uncertainty could still shift final acreage decisions. Volatility in fertilizer markets due to the Iran war, evolving export demand, particularly from China, and spring weather conditions may influence how acres are ultimately allocated.