January 19, 2026

Farm Economy Shows Signs of Weakening

The U.S. farm economy is showing widening signs of distress as farmers confront a toxic mix of rising production costs, weak crop prices and shrinking credit access, threatening rural communities nationwide. For the third straight year, growers are struggling with unprofitable operations amid record crop yields that have helped depress market values for corn, soybeans and other commodities, according to farmers and industry analysts. Reuters reports fertilizer and other input costs continue to climb in 2026, while net farm income is projected to fall sharply, prolonging financial strain on producers. The economic stress is rippling through rural America, with job losses reported in related sectors such as farm equipment manufacturing and meatpacking. Tractors and combines are piling up on dealer lots as sales plunge, and some lenders are tightening credit or turning away borrowers in need of operating funds. Bankruptcies are increasing, with Chapter 12 farm filings rising significantly, and many rural residents worry the downturn could deepen without stronger demand or policy support.

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Congress Passes Spending Package

Congress on Thursday approved a major bipartisan spending package that funds key energy, environment and science agencies for fiscal 2026, but lawmakers stopped short of including protections for a Colorado research lab sought by some Democrats. The Senate voted 82-15 to send the roughly $180 billion “minibus” package, covering the Department of Energy, Interior Department, Environmental Protection Agency and other science programs, to President Donald Trump’s desk. The legislation locks in full-year funding after months of negotiations, rejecting deeper cuts proposed by the administration. Colorado Sen. Michael Bennet voted against the legislation after pushing unsuccessfully for an amendment to safeguard the National Center for Atmospheric Research in Boulder, a climate and weather research facility. Supporters said the package provides stability for research and environmental programs, while critics raised concerns that it trims some funding and fails to address long-standing agency budget shortfalls.

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Kansas HPAI Outbreak Worst in U.S.

Kansas is contending with the worst outbreak of bird flu in the United States, with more than 414,000 birds confirmed infected with highly pathogenic avian influenza (HPAI), federal officials said. The majority of infections, about 380,000, have occurred at a single commercial poultry farm in Pottawatomie County, part of four commercial and six backyard flocks affected statewide as of Jan. 12, according to the U.S. Department of Agriculture. The strain is highly lethal to birds but is considered a low risk to the general public. No human cases have been reported in Kansas, though the Centers for Disease Control and Prevention has documented 74 human infections and two deaths nationwide since 2024. State officials said migrating wild waterfowl likely are spreading the virus and urged poultry owners to strengthen biosecurity measures to protect flocks during the peak winter spread.

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ASI Leadership Meets with USDA about Bridge Payments

Leaders and staff from the American Sheep Industry Association met last week with a top U.S. Department of Agriculture official to urge the inclusion of wool under the new Farmer Bridge Assistance program. The group met in Washington with USDA Farm Production and Conservation Under Secretary Richard Fordyce following the department’s December announcement of $12 billion for the program. Of that total, $11 billion is earmarked for one-time payments to traditional row crop producers, while $1 billion is reserved for commodities not otherwise covered, such as specialty crops and sugar. Livestock and meat products are excluded. During the meeting, ASI presented testimony detailing ongoing market disruptions, high harvesting costs and persistently low wool prices that sheep producers have faced since 2019. USDA officials said wool would be considered for funding through the program’s competitive reserve for uncovered commodities, though no final decisions have been made. The department also said timelines for potential payments to producers not currently eligible for assistance remain under development, with further details expected in the coming weeks.

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Crop Basis Trends Up Across the Eastern Corn Belt

Corn and soybean basis levels across much of the Midwest have been steady to slightly stronger since the start of 2026, though sharp regional differences persist, market analysts said. In many crop reporting districts from Iowa to Ohio, basis to March futures has held at or above historical averages, reflecting improved demand and tighter local supplies. However, Iowa remains a notable exception, with both corn and soybean basis levels still well below long-term norms despite modest recent gains. Corn basis in Indiana, Ohio and Michigan has climbed above the three-year average, with some areas posting unusually strong levels. In east-central Indiana, cash corn prices have even moved to a positive basis against March futures. Illinois basis levels are largely in line with recent history, generally ranging from 20 to 30 cents under futures, though a few localized outliers remain. In Iowa, corn basis has strengthened over the past month but continues to lag. In northwest Iowa, basis sits at 38 cents under March futures, among the weakest levels seen since the 2018-19 marketing year.

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Celebrating Women Farmers

Celebrations recognizing women’s contributions to agriculture are expected to be widespread this year as the International Year of the Woman Farmer gains momentum across the United States. From farm and trade association meetings to state agriculture departments and Capitol Hill, the designation highlights women who lead both on the farm and in agribusiness boardrooms. The United States proposed the resolution to the United Nations General Assembly, which adopted it May 2, 2024, with 123 co-sponsoring countries. “This is long overdue recognition for women who work in every part of agriculture,” said Krysta Harden, former U.S. deputy secretary of agriculture and now president and CEO of the U.S. Dairy Export Council, speaking during a National Association of State Departments of Agriculture video. Harden said women’s contributions range from physical labor in fields and ranches to leadership and decision-making roles. According to the latest USDA Census of Agriculture, 1.2 million female farmers operated in the U.S. in 2022, representing 36% of producers, with 58% of farms reporting at least one female producer. Several farm and food organizations have since formed a working group to coordinate activities throughout the year.

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