As 2026 got underway, interest rates for American farmers continued to retreat to levels last noticed in 2022 as reported in the major agricultural regions including Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.

Recordkeeping is the foundation of good financial management. You can think of it like the soil in your fields. Accurate records allow for strong analysis, decision-making and profits to weather any storm our farms might experience.

A disciplined approach to capital spending in 2026 will help ensure the operation remains strong not only through this cycle but into the next one as well.

When employees understand what the farm is working toward and how success is measured, they are better equipped to make decisions that support those goals. Transparency builds trust, reduces confusion and creates a shared sense of purpose across the operation.

Recently, I’ve had some deep conversations with producers around the concept that it’s not how much you can borrow but rather how much you can repay that matters. At the heart of the conversation is whether collateral or capacity to repay is more important.

Interest rates in the fourth quarter of 2025 dipped to rates not seen since 2022 – lower than the peaks of 2023 but remained above the 10-year average – a signal lending conditions were more favorable for farmers despite overall credit conditions deteriorating as the year came to a close.

Continuing from the first half of last year’s trend, interest rates in the third quarter of 2025 fell according to lender surveys from Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.

The tax accountant, lender and on-farm management team each compile financial statements with very different goals, and each interpretation serves its unique purpose. Understanding the goals of each stakeholder is critical as you work to make strong business decisions.