October 13, 2026
Ag Lending Continues Growing in Q2
Agricultural lending at U.S. commercial banks continued to grow during the second quarter of 2026, while farm loan performance remained relatively stable. The Federal Deposit Insurance Corporation shows total outstanding agricultural loans reached 206.27 billion dollars, up 2.1 percent from the first quarter and 3.8 percent from a year earlier. Farm real estate loans totaled 122.26 billion dollars, increasing 4.5 percent year over year. Non-real estate farm loans, which help finance production, equipment, and livestock, reached 84 billion dollars, up 2.8 percent from a year ago. At banks specializing in agricultural lending, delinquency rates declined from the first quarter but remained close to year-earlier levels. Those banks also reported wider net interest margins during the quarter. Higher yields on earning assets supported the quarterly improvement, while lower funding costs accounted for much of the increase over the year. The figures point to continued growth in farm credit, with loan quality showing little change from last year.
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Higher Corn Yield Forecast Pressures Prices, NCGA Calls For Action
The USDA’s October supply and demand report raised its forecast for 2026 corn yields by 2.7 bushels per acre, sending corn prices lower following the release. National Corn Growers Association President Matt Frostic says the price drop adds pressure to farmers already dealing with high production costs, including diesel fuel and fertilizer. Frostic is urging Congress to prioritize passage of year-round E15 legislation and a new farm bill when lawmakers return to Washington in November. He says both measures could help support corn demand and provide greater certainty for farm programs as growers work through a difficult economic year. Beyond year-round E15, NCGA is also pursuing longer-term demand opportunities in maritime fuel and sustainable aviation fuel. Frostic says the organization is ready to work with the Trump administration, elected officials, and industry partners to strengthen U.S. corn and ethanol competitiveness in global markets.
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Dairy Innovation Grants Face New Funding Hurdle
A new federal funding requirement could put grants for small and medium-sized dairy businesses at risk, prompting Wisconsin Senator Tammy Baldwin to call for the USDA to reverse course. USDA’s fiscal year 2026 funding notice requires the nation’s four Dairy Business Innovation Centers to provide a 25 percent cash match to receive federal funding, with each center potentially responsible for up to one million dollars. The centers, located in Wisconsin, Vermont, Tennessee, and California, say they lack the resources to meet the requirement, threatening their ability to award grants and provide business assistance. Baldwin is asking USDA to reissue the funding notice without the matching requirement. She created the program through legislation included in the 2018 Farm Bill. Since 2019, the centers have awarded more than 106 million dollars in grants to 911 dairy businesses, supporting services such as product development, marketing, and business planning. The Wisconsin Cheese Makers Association also warns the new requirement could jeopardize the program.
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USDA Projects Long-Term Decline In Global Food Insecurity
The USDA projects global food insecurity will decline over the next decade, although hundreds of millions of people will continue to struggle to access enough food. USDA’s Economic Research Service estimates 884.4 million people, or 19.5 percent of the population across 83 low- and middle-income countries, will face food insecurity in 2026. The agency expects food insecurity rates to decline in most countries this year compared with 2025, partly due to rising per capita incomes and easing food price inflation. However, local disruptions and deeper economic vulnerabilities could worsen conditions in some areas, particularly Sub-Saharan Africa and Latin America and the Caribbean. Looking ahead, USDA projects the number of food-insecure people in the countries studied will fall 33.4 percent by 2036, reaching about 589 million people, or 11.4 percent of the population. The agency’s Global Food Assessment also identifies countries where domestic production cannot meet food demand, highlighting potential opportunities for U.S. agricultural exports.
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Lawmakers Push For Reallocation Of Lost Renewable Fuel Volumes
A bipartisan group of 39 lawmakers is urging the Trump administration to restore renewable fuel volumes lost through small-refinery exemptions under the Renewable Fuel Standard. Representatives Adrian Smith of Nebraska and Nikki Budzinski of Illinois led the effort, asking the Environmental Protection Agency and Department of Energy to propose a supplemental rule by October 15. The rule would reallocate blending volumes lost after nearly three dozen small refineries received exemptions in August. The Renewable Fuels Association says maintaining strong renewable volume obligations for 2026 and 2027 is important for farm demand, rural jobs, and energy security. In their letter, lawmakers argued that biofuel demand helps support commodity prices and rural manufacturing. They also cited potential savings for drivers, saying E15 averages 30 cents per gallon less than E10, while B20 biodiesel runs about 11 cents less than regular diesel. The letter was signed by 23 Republicans and 16 Democrats, reflecting bipartisan support for the request.
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National FFA Convention Set To Draw 70,000-Plus To Indianapolis
More than 70,000 FFA members, advisors, and supporters are expected in Indianapolis October 21st through 24th for the 99th National FFA Convention and Expo. The annual event brings together students from across the country for leadership development, career exploration, competitions, and recognition of their achievements in agricultural education. Organizers plan to award 5,816 American FFA Degrees, the organization’s highest degree of membership. Members will also participate in hands-on service projects, with an estimated 3,240 students and delegates serving at 27 local nonprofits. The convention’s Expo will give students opportunities to explore more than 350 careers in agriculture, while workshops and presentations will focus on personal growth and leadership skills. Last year’s convention attracted more than 73,000 people. This year’s gathering is expected to generate an estimated 40 million dollars in economic activity for Indianapolis. The convention will be held in Indianapolis through 2040. Those unable to attend can watch coverage through FFA Live.
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