02/09/2026
RISING FARM DEBT AND FINANCIAL STRESS: EVIDENCE FROM THE AG ECONOMY BAROMETER
In the Purdue University-CME Group Ag Economy Barometer, an implicit index of financial stress was created by multiplying the percentage of respondents who expected to increase the size of their operating loan by the percentage of respondents who indicated that the expected increase was due to unpaid operating debt from prior years. The lowest index was in 2023 (1.1) while the highest index was in 2026 (6.5). The index value in 2026 was higher than it was in 2020. The increase in this implicit index suggests that financial stress increased in 2025, reflecting higher input costs, tighter margins, and greater reliance on operating debt carried over from prior years. Additionally, in January 2026, 76% of the respondents agreed and strongly agreed that they had a strong balance sheet. As a reference point, this percentage was 90% in April 2023, suggesting some weakening in financial positions more recently, despite federal assistance payments that have supported farm income.
Read more: https://farmdocdaily.illinois.edu/2026/02/rising-farm-debt-and-financial-stress-evidence-from-the-ag-economy-barometer.html
