Finance with Confidence — Even in Uncertain Times
In today’s economy, rising input costs, market volatility, and lending standards may create challenges for producers interested in making long-term financial moves. Whether navigating a generational transition or restructuring after a tough season, pressures like these can strain cash flow and stall progress.
The USDA forecasts net farm income to rise to $180.1 billion for 2025 (Chart A) – an increase of 29.5% from 2024. However, this recovery is not expected to be felt evenly across all ag segments. Crop producers are still expected to face significant headwinds as both commodity prices and sales are forecasted to decline, possibly eroding working capital and increasing reliance on credit. USDA data (Chart B) shows projected cash sales for corn declining 4.3% in 2025 – representing a nearly 20% drop since 2023. Cash sales for soybeans show a similar trend, with a projected 6.6% decline in 2025 and a total decrease of over 21% since 2023.
The 2024 ABA Ag Lender Survey highlights increasing concern among ag lenders, with more than 77% of lenders reporting rising farm debt over the previous year. The survey states when looking ahead, “A higher share of lenders plan to tighten underwriting standards and loan terms for agricultural credit,” citing expectations that “farmers may face a more challenging environment in the year ahead.” 1
With the possibility of access to traditional credit narrowing, producers need financing options that offer flexibility, stability, and support. That’s why AgFi developed its Transition Financing Program: a solution tailored to help producers move forward with confidence, even in uncertain conditions.
With rising costs and potentially tighter lending limit opportunities, AgFi’s Transition Financing offers a practical path forward. With flexible terms, ag-specific expertise, 24/7 account access, and local reps who work to understand your operation, our team is here to help you keep building for the future.
1 “Ag Lender Survey: Farm Profitability Expected to Decline in 2024.” Ag Lender Survey 2024 | American Bankers Association, 14 Nov. 2024, www.aba.com/about-us/press-room/press-releases/ag-lender-survey-2024.