Monday May 04 Ag News - NE Farm Income Update - May Beef Month Reflections - May Renewable Fuels Month Reflections - Irrigation Changes in the US - Iowa Wraps Up '26 Legislative Session - and more!

Spring 2026 Nebraska Farm Income Update

Nebraska net farm income is projected to increase by 12% in 2026, reaching a record $9.96 billion, according to the latest projections from the University of Nebraska-Lincoln and the University of Missouri.

Higher government payments, continued strength in the livestock sector and a rebound in the crop sector are driving the projected $1.10 billion increase over 2025 levels, according to the Spring 2026 Farm Income Outlook for Nebraska. The report is a collaboration between the Center for Agricultural Profitability at Nebraska and the Rural and Farm Finance Policy Analysis Center at Missouri.

Nebraska’s projected increase contrasts with the national outlook, with projections showing U.S. net farm income holding relatively steady or declining slightly in 2026. The report attributes Nebraska’s improved outlook to strong livestock receipts and the outsized impact of government payments in the state. 

Government payments in Nebraska are projected to increase by $1.24 billion, or 71%, to $2.97 billion in 2026. The increase is expected to come from higher Title I commodity program payments under the One Big Beautiful Bill Act and ad hoc assistance.

The projected income reflects important support for the state’s farm economy but may not tell the full story of producer profitability, according to Brad Lubben, agricultural policy specialist at Nebraska.

“Strong cattle prices and higher government payments are helping push Nebraska’s projected farm income to a record level in 2026,” Lubben said. “At the same time, production expenses are also projected to reach a record high. That means many producers may still be working with tight margins, even in a year when the aggregate income number looks very strong.”

Total livestock receipts in Nebraska are projected to increase by $708 million, or 3%, to $23.55 billion in 2026. Cattle receipts, which account for 91% of Nebraska livestock receipts, are projected to increase by $1.09 billion, or 5%, to $21.52 billion. That’s due to continued high cattle prices driven by tight supplies and stable marketings of heavier cattle, according to the report.

After three consecutive years of decline, crop receipts are projected to increase by $517 million, or 4%, to $12.01 billion. Corn receipts are projected to increase by $374 million, or 5%, to $7.86 billion, supported by higher prices and inventory sales from a record 2025 crop. Soybean receipts are projected to increase by $116 million, or 4%, to $3.08 billion.

“The crop side of the outlook is important because it marks a positive change from the past few years,” Lubben said. “That does not mean margins suddenly become easy, especially with fuel, fertilizer and other costs still elevated, but it does point to some improvement in the revenue picture for crop producers.”

Production expenses are projected to increase by $829 million, or 3%, to a record $30.37 billion in 2026. The report indicates key drivers are higher purchased livestock expenses, fuel costs and fertilizer costs. Purchased livestock expenses are projected at $10.55 billion, up 5% from 2025, while fuel and oil expenses are projected to increase 26% to $903 million. Fertilizer expenses are projected to increase 4% to $2.25 billion.

Looking ahead, the report projects Nebraska net farm income to decrease by $1.22 billion, or 12%, to $8.74 billion in 2027. That’s primarily driven by a projected $1.32 billion reduction in government payments, assuming a substantial drop in supplemental and ad hoc program payments.

“The information in the Farm Income Outlook is intended to help policymakers, industry analysts and agricultural practitioners understand the expected profitability of the state agricultural sector and the factors driving it,” said Alejandro Plastina, director of the Rural and Farm Finance Policy Analysis Center at Missouri. “For 2026, the Nebraska outlook points to strong aggregate income, but also continued exposure to high costs, policy uncertainty and changing market conditions.”

The report notes that its projections do not account for all market uncertainty and that small changes in cash receipts, production expenses or unannounced government assistance can substantially change the outlook for net farm income.



Lt. Governor Kelly Proclaims May as Beef Month in Nebraska

Lieutenant Governor Joe Kelly officially proclaimed May as Beef Month in Nebraska on Friday, recognizing the vital role the beef industry plays in the state’s economy, rural communities, and global beef production.

The proclamation was presented at the University of Nebraska–Lincoln Animal Science Complex before a gathering of Nebraska farmers, ranchers, and beef industry leaders. Lt. Governor Kelly was joined by Nebraska’s director of agriculture, Sherry Vinton, Nebraska Beef Council chairwoman, Rosemary Anderson, and the Nebraska Cattlemen president, Craig Uden.

Lt. Governor Kelly praised the dedication of Nebraska’s beef producers, processors, and exporters.

"Nebraska's beef industry represents the very best of our state - hard working, innovative individuals who are dedicated to excellence,” said Kelly. “It strengthens our economy, supports communities across Nebraska, and provides high-quality beef to consumers around the world. Beef Month is a time to recognize the people who make that success possible."

According to the United States Department of Agriculture, Nebraska leads the nation in commercial beef processing, with more than 6.4 million cattle harvested in 2025. Nebraska feedyards also rank first, with more than 2.8 million cattle on feed as of January 2026. The state is second nationally in total cattle and calves with 6.15 million head, trailing only Texas.

“As beef producers, we take great pride in raising cattle responsibly and producing some of the safest, highest-quality beef in the world,” said Uden, who feeds cattle near Cozad. “We appreciate this opportunity to celebrate Beef Month and recognize the families and businesses whose hard work keeps our industry strong.”

Anderson noted that Beef Month is also the kickoff to grilling season.

“There is no better time to enjoy the flavor and nutrition of beef,” said Anderson. “As families gather for cookouts, holidays, and summer celebrations, beef continues to bring people together around the table to create lasting memories.”

During the event, beef industry leaders also received updates from several University of Nebraska–Lincoln researchers conducting projects focused on beef food safety and product quality, highlighting the university’s continued partnership with Nebraska agriculture and commitment to advancing the industry.

Cattle production remains the largest segment of Nebraska’s agriculture industry. With abundant feed resources, reliable water supplies, and dedicated producers, Nebraska continues to stand as a global leader in beef production.

The event also marked the launch of the 6th annual Nebraska Beef Passport season with the UNL Loeffel Meat Shoppe as one of the featured locations. Developed by the Nebraska Beef Council, the program features more than 60 restaurants and meat shops across the state serving premier beef products. Participants can earn points by visiting featured locations, enjoying beef menu items, and redeeming points for prizes. Passports are free and available now at www.GoodLifeGreatSteaks.org.



Ricketts Designates May as Beef Month

Last week, U.S. Senator Pete Ricketts (R-NE) introduced a resolution to designate May 2026 as Beef Month in America. Ricketts is a longtime champion — and enjoyer — of Nebraska beef.  Senators Amy Klobuchar (D-MN), Deb Fischer (R-NE), Cindy Hyde-Smith (R-MS), James Lankford (R-OK), and Roger Marshall (R-KS) cosponsored this resolution.

“Nebraska is the beef state.  Last year, we led the nation with over $1.75 billion in beef exports.  We lead the nation in commercial cattle slaughter, with over 6 million head.  We have the top three beef-producing counties in the nation,” said Senator Ricketts.  “Nebraska’s ranchers are the best in the world.  They’ve shown it this year in response to this spring’s devastating fires across the state.  I’m confident they will rebuild and I’m grateful to honor them in the month of May.”

“Minnesota cattle producers are vital for our agricultural economy, putting food on tables across our state and nationwide,” said Senator Klobuchar.  “Officially designating May as National Beef Month is a well-earned recognition of their hard work and dedication.”

“Anyone who knows beef knows the best comes from Nebraska,” said Senator Fischer.  “Beef production is the largest part of our agriculture economy, and we lead the nation in every step from feeding to processing.  I’m proud to join Senator Ricketts on this resolution to give our ranchers the recognition they deserve for putting high-quality beef on the table.”

“We salute the American beef producers who persevere through any hardship, from high input costs to global competition, to supply families with high-quality beef.  We also recognize the historic and ongoing importance of the cattle industry to our nation’s development and economy,” Senator Hyde-Smith said.  “I’m also proud of Mississippi cattle growers and all they contribute to the wellbeing of my state.”

“Beef is not just a staple on our tables, it is a cornerstone of Oklahoma’s economy and way of life,” said Senator Lankford.  “Our cattle producers work day in and day out to feed families across the country and keep rural communities strong.  Recognizing National Beef Month is a chance to highlight their hard work, but it is also a reminder that we need policies that support them, not hold them back.”

“Growing up a 5th-generation farm kid, I know firsthand that nobody raises better beef than Kansas,” said Senator Marshall.  “Our ranchers work hard to provide delicious, nutritious beef to American families.  I’m proud to celebrate them this month.”

"The Livestock Marketing Association appreciates Senator Ricketts for recognizing National Beef Month by highlighting the important role that the cattle industry plays in rural communities, the national economy, and our food supply," said Lucas Simmer, Director of Government and Industry Affairs, Livestock Marketing Association.

"Nebraska’s ranchers show up rain or shine—whether in the middle of a blizzard, during the heat of a drought, or the under the threat of wildfires.  We don't just protect our herds, we feed the world," said Craig Uden, President, Nebraska Cattlemen.  "We thank Senator Ricketts for recognizing our cattle producers and ensuring the world knows the true value of American beef."



Flood Co-Leads Bipartisan, Bicameral Effort to Establish Transparent Labeling of Fake Meat

Last week, U.S. Congressman Mike Flood (NE-01) joined Congressmen Mark Alford (MO-04) and Buddy Carter (GA-01) along with Senators Pete Ricketts (R-NE) and John Fetterman (D-PA) in introducing the "Fair and Accurate Ingredient Representation on Labels Act," also known as the "FAIR Labels Act." The bill formalizes the labeling of plant-based and cell-cultivated (lab-grown) protein products so consumers can have accurate information when making purchasing decisions.

“Nebraska is the Beef State and raising livestock has long been part of Nebraska’s identity,” said Congressman Flood (NE-01). “Families deserve to know exactly what they are putting on their tables, not to be confused by deceptive labeling and marketing tricks. Meanwhile, our farmers and ranchers continue to be undercut by the fake meat industry’s labeling. Thank you to Congressman Alford for his leadership in introducing this commonsense bill, which will finally bring about honest labeling of fake meat products and better inform consumers when making choices at the grocery store.”

“Deceptive labeling of plant-based protein products hurts American farmers and ranchers. It also degrades consumer trust,” said Senator Ricketts (R-NE). “By enhancing oversight and enforcing stricter labeling regulations, we can protect Nebraska beef. The FAIR Labels Act is common-sense: Americans should know exactly what they’re putting in their grocery cart.”

The "Fair Labels Act" establishes definitions for “Cell-Cultivated” and “Plant-Based Alternative” protein products, with oversight and inspection standards being conducted by the U.S. Department of Agriculture and the Food and Drug Administration. The labels themselves will have a clear disclaimer if the product does not contain meat or poultry, along with terms like “cell-cultivated,” “plant-based,” or other similar descriptors being used. 



Renewable Fuels Month Showcases Nebraska’s Leadership in Clean, Homegrown Energy

As the summer driving season begins, Nebraskans are encouraged to take advantage of affordable, renewable fuel options at the pump during Renewable Fuels Month in May.

Renewable Fuels Month is recognized in Nebraska by the Nebraska Corn Board (NCB), Nebraska Ethanol Board, Nebraska Sorghum Board, Nebraska Soybean Board and Renewable Fuels Nebraska to highlight the economic, environmental and consumer benefits of biofuels such as ethanol, biodiesel and renewable diesel.

Biofuels continue to play an important role in reducing U.S. dependence on foreign oil, strengthening the nation’s economy and supporting jobs in rural communities. In Nebraska, ethanol ranks as the state’s third-largest agricultural commodity, with 24 ethanol plants located across the state.

According to the Renewable Fuels Association, ethanol saves U.S. drivers more than $50 billion annually, or an average of 39 cents per gallon. Drivers with model year 2001 and newer vehicles can safely use ethanol blends up to E15, while flex-fuel vehicle owners can use blends up to E85 for even greater savings.

“May marks the beginning of a busy travel season for many Nebraskans, and Renewable Fuels Month serves as an important reminder that drivers have fuel choices that benefit both their wallets and their communities,” said Brandon Hunnicutt, chairman of NCB. “By choosing ethanol-blended fuels, consumers can lower fuel costs, reduce their environmental impact and support Nebraska corn farmers.”



Nebraska Celebrates Renewable Fuels Month This May

Renewable Fuels Month highlights the importance of renewable biofuels, such as ethanol and biodiesel. The month of May marks the beginning of the summer driving season, making it an ideal time to fuel up on clean and cost-saving biofuels. Ethanol, renewable diesel, and biodiesel help to decrease America’s dependence on foreign oil, boost our nation’s economy, and support thousands of jobs in rural communities.
 
Nebraska is the second-largest producer of ethanol in the country, and the use of a 10% blend saves Nebraskans millions per year. In 2025, thanks to ethanol blends of E10 and above, Nebraska drivers saved at least $300 million. Overall, the Nebraska ethanol industry contributes more than $6 billion to the state’s economy.
 
“Today begins a monthlong celebration of renewable fuels and their impact on our state,” Nebraska Ethanol Board (NEB) Executive Director Ben Rhodes said. “Ethanol and other renewable fuels provide many benefits: they strengthen our rural communities, save drivers money, and contribute to cleaner air.”
 
Fueled by Nebraska—a partnership of Nebraska biofuels organizations—along with the Nebraska Soybean Board and the Nebraska Sorghum Board, invite you to join them to celebrate renewable fuels in your classrooms, at work, and in your community this May. Learn more and find ethanol retail locations at fueledbynebraska.com.
 
“With the summer driving season starting, May is the perfect time to highlight the renewable fuels industry,” Rhodes said. “The NEB thanks Nebraska’s 24 ethanol plants for all their hard work in producing high-quality, homegrown fuel. Fill up with higher blends all month long and join us in showcasing all the benefits of renewable fuels.”



NEW STUDY DETAILS CHANGING U.S. IRRIGATED AGRICULTURE, VIABILITY STRATEGIES

A new study by researchers at the Daugherty Water for Food Global Institute at the University of Nebraska offers a comprehensive national-scale assessment of irrigated agriculture in the United States in recent years. Published in Agricultural Water Management, the findings carry important implications for the future of food production, water policy and rural livelihoods across the country.

The study, “Irrigated agriculture in the United States: Current status and future frontiers,” draws on multiple datasets supported by robust geospatial analysis to paint a detailed picture of where irrigated agriculture stands today, where it is headed and what must change if the U.S. is to sustain its role as a global food security anchor. The study is a collaboration by Daugherty Water for Food scientists Ivo Zution Gonçalves, Christopher Neale, Thais Murias Jardim, Regiane de Carvalho Bispo, Randall Ritzema and Renata Rimšaitė.

Irrigated agriculture in the U.S. remains geographically concentrated. Five states — California, Nebraska, Arkansas, Texas and Idaho — account for about half of all irrigated farmland nationally. The study notes that water management decisions in these states carry outsized consequences for domestic food production.

The researchers identify a gradual eastward shift in irrigated agricultural activity. As groundwater depletion, particularly in the High Plains Aquifer, constrains production in parts of the Great Plains and West, some agricultural expansion is occurring in eastern states where surface water and rainfall are more abundant. The authors note this shift has implications for water infrastructure, land use and agricultural policy in regions not historically associated with large-scale irrigation.

Corn and soybean acreage under irrigation has grown in recent years, while irrigated area for alfalfa, cotton and rice has declined. The study attributes these shifts to a combination of market conditions, regional water availability and efforts to use limited water supplies more efficiently.

Adoption of low-flow irrigation methods and soil moisture monitoring has increased across the country. However, the study finds that adoption is uneven, with small and medium-sized producers often lacking the capital and technical resources to implement advanced irrigation systems. The researchers describe the gap between available technology and widespread practice as an ongoing challenge.

The paper documents pressure on water resources from several directions: groundwater depletion, climate variability, and rising energy and operational costs. In key irrigated regions, aquifer levels are declining faster than they are being replenished. The study also highlights governance challenges, including fragmented water rights systems and inconsistent regulatory oversight, which complicate management at the scale current conditions require.

The authors call for stronger groundwater monitoring and policy frameworks; broader adoption of precision irrigation practices; and expanded access to irrigation technologies for smaller producers. They argue that effective water governance will be as important as technological investment in determining the long-term sustainability of U.S. irrigated agriculture.



BIG WINS FOR IOWA CATTLEMEN DURING 2026 LEGISLATIVE SESSION

Adjourning at 7:09 p.m. on Sunday, the Iowa Legislature has finished their work for the year, passing multiple bills directly tied to ICA’s priorities: protecting private property rights, supporting the long-term viability of Iowa’s beef industry through fair tax policy, and funding for foreign animal disease preparedness and response. ICA is encouraged by the progress made and looks forward to working with Governor Reynolds to see key legislation signed into law.

“We are grateful for the strong engagement from legislators on issues that matter to Iowa cattle producers,” said ICA CEO Bryan Whaley. “On multiple fronts, our presence at the State Capitol this year yielded dividends for our members that emphasized the beef industry in Iowa.”

ICA-backed bills headed to the Governor’s Office:

● Interstate Weight Limits (HCR 6): A resolution urging Congress to increase interstate truck weight limits beyond 80,000 pounds, improving transportation efficiency for cattle producers.

● Land Restoration for Transmission Lines (SF 2227): Establishes clear standards for restoring agricultural land following transmission line construction, including tile repair, rock removal, and reseeding requirements.

● Transmission Line Installation in Interstate Rights-of-Way (SF 2214): Allows transmission lines to be constructed in interstate rights-of-way, reducing the use of eminent domain; this measure has been signed into law.

● GHG Emission Liability (HF 2527): Provides clarity and reasonable limits on liability related to greenhouse gas emissions in agricultural settings.

● Iowa Farm Act (SF 2465): Provides financial incentives for veterinarians in underserved areas, enhances biosecurity and foreign animal disease preparedness while protecting farmer confidentiality during emergencies, among other positive provisions.

In addition to advancing positive policy, ICA worked diligently to oppose legislation that could have negatively impacted cattle producers:

● Proposals that would have increased pressure on pastureland and land values, including expanded access to in-state hunting tags for out-of-state individuals.

● Measures that could have weakened veterinary education standards and strained access to quality veterinary services in Iowa.

● Legislation extending protections to black bears that could create future wildlife management challenges.

“Just as important as passing good policy is stopping harmful proposals,” said ICA President Craig Moss. “Our team remained engaged throughout the session to ensure cattle producers’ voices were heard at every step.”

The Iowa Cattlemen’s Association extends its appreciation to the Iowa Legislature for its work during the 2026 legislative session and its continued commitment to supporting Iowa’s cattle producers and rural communities. ICA commends its members, policy leaders, and staff for their advocacy efforts during the session. Their engagement with legislators played a critical role in shaping outcomes that support Iowa’s cattle industry.

With the session wrapped, ICA is focused on turning these wins into results and continuing to drive the priorities that strengthen Iowa’s cattle industry. 



Naig Highlights Legislative Wins for Iowa Agriculture, Clean Water

Following the conclusion of the 2026 legislative session, Iowa Secretary of Agriculture Mike Naig today thanked Gov. Reynolds, Leader Klimesh, Speaker Grassley and members of the Iowa Legislature for delivering meaningful results for Iowans:

“The 2026 legislative session delivered meaningful results for Iowa agriculture and for our entire state. I thank Gov. Reynolds, Leader Klimesh, Speaker Grassley and the Legislature for their leadership, hard work, and continued support of our ag and rural communities. This session was highlighted by a historic investment in clean water, along with passage of the Iowa Farm Act, strong support for Choose Iowa, impactful property tax reform, a responsible state budget, and important investments in animal health. A strong agriculture is essential to a strong Iowa, and together, these legislative wins will keep Iowa a great place to live, work and raise a family.”

Secretary Naig on the Farm to Faucet Clean Water Iowa Plan:
“Our comprehensive water quality package modernizes how Iowa invests in clean water—from the field to the faucet. This forward-looking approach realigns existing resources without raising taxes and focuses investments where they deliver the greatest impact. By pairing together conservation practices on the land, infrastructure improvements in our communities, and enhanced monitoring to track progress, this kind of collaboration is exactly what it takes to achieve meaningful, lasting water quality improvements.”
    The package unlocks $138 million in funding and drives an estimated $319 million in water quality investments over the next 12 years.
    These resources will support critical water quality infrastructure, expand financial assistance to help small and mid-size communities upgrade water treatment systems, and fund both urban and rural conservation projects.
    It also includes a $25 million grant to Central Iowa Water Works to expand infrastructure and double nitrate removal capacity within the next three years.

Secretary Naig on Passage of First-Ever Comprehensive Iowa Farm Act:
“I am grateful for the Legislature’s work to pass the first-ever comprehensive Iowa Farm Act, which delivers more economic opportunities for our farmers and our ag community, reduces unnecessary regulatory burdens, and strengthens the long-term viability of our rural communities. This bi-partisan legislation positions Iowa agriculture for continued growth and success while helping ensure farmers have the certainty and tools they need to plan for the future.”

Secretary Naig on Momentum Behind Choose Iowa:
“The Legislature continues to show strong support for the Choose Iowa program. Newly approved funding will bring more fresh, healthy foods that are grown and raised by Choose Iowa members into school meals. This investment supports Choose Iowa members’ access to new markets and helps consumers identify and purchase Iowa grown, made, and raised food, beverages and ag products.”



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 523 million bushels in March 2026. Total corn consumption was up 10 percent from February 2026 and up 4 percent from March 2025. March 2026 usage included 92.5 percent for alcohol and 7.5 percent for other purposes. Corn consumed for beverage alcohol totaled 3.65 million bushels, up 13 percent from February 2026 but down 13 percent from March 2025. Corn for fuel alcohol, at 474 million bushels, was up 10 percent from February 2026 and up 5 percent from March 2025. Corn consumed in March 2026 for dry milling fuel production and wet milling fuel production was 91.9 percent and 8.1 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.79 million tons during March 2026, up 10 percent from February 2026 but down 1 percent from March 2025. Distillers wet grains (DWG) 65 percent or more moisture was 1.33 million tons in March 2026, up 11 percent from February 2026 and up 8 percent from March 2025.

Wet mill corn gluten feed production was 268,470 tons during March 2026, up 11 percent from February 2026 and up 3 percent from March 2025. Wet corn gluten feed 40 to 60 percent moisture was 191,594 tons in March 2026, up 13 percent from February 2026 but down 3 percent from March 2025.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 6.82 million tons (227 million bushels) in March 2026, compared with 6.43 million tons (214 million bushels) in February 2026 and 6.20 million tons (207 million bushels) in March 2025. Crude oil produced was 2.64 billion pounds, up 6 percent from February 2026 and up 7 percent from March 2025. Soybean once refined oil production at 2.00 billion pounds during March 2026 increased 14 percent from February 2026 and increased 7 percent from March 2025.

Flour Milling Products 
All wheat ground for flour during the first quarter 2026 was 222 million bushels, down 2 percent from the fourth quarter 2025 grind of 226 million bushels and down 2 percent from the first quarter 2025 grind of 227 million bushels. First quarter 2026 total flour production was 103 million hundredweight, down 1 percent from the fourth quarter 2025 and down 3 percent from the first quarter 2025. Whole wheat flour production, at 3.91 million hundredweight during the first quarter 2026, accounted for 4 percent of the total flour production. Millfeed production from wheat in the first quarter 2026 was 1.58 million tons. The daily 24-hour milling capacity of wheat flour during the first quarter 2026 was 1.59 million hundredweight.



NCGA Launches 2026 Contest with New Short-Season Corn Pilot Class

The National Corn Growers Association (NCGA) is proud to announce the expansion of the Yield Contest to include a new pilot class focused on short-season corn. The pilot gives corn farmers who grow lower-maturity hybrids the chance to compete nationally with a shorter growing season.

NCGA brings this new opportunity to corn growers for the 2026 contest, which launches for entries in all classes today, May 1, 2026.

The pilot parameters are simple: farmers in any state may enter hybrids with a relative maturity of 99 days or fewer. The class is limited to the first 100 entries for 2026.

“I’ve seen firsthand how much short-season growers care about maximizing every day of the season,” said NCGA First Vice President and Michigan corn farmer Matt Frostic. “This pilot class is a chance for that dedication to get the national recognition it deserves.”

In the Yield Contest’s 62nd year, NCGA continues to learn from corn growers across the country and expand the program to better serve them. Growers interested in the short-season pilot class are encouraged to enter early, as spots are limited to the first 100 entries.

For more information on the new Yield Contest Short-Season Corn pilot class, visit ncga.com/YieldContest.



USDA Announces May 2026 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for May 2026, which are effective May 1, 2026. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.             

Operating, Ownership and Emergency Loans       
FSA offers farm operating, ownership and emergency loans with favorable interest rates and terms to help eligible agricultural producers obtain financing needed to start, expand or maintain a family agricultural operation.  

Interest rates for Operating and Ownership loans for May 2026 are as follows:  
    Farm Operating Loans (Direct): 4.750%  
    Farm Ownership Loans (Direct): 5.750%  
    Farm Ownership Loans (Direct, Joint Financing): 3.750%  
    Farm Ownership Loans (Down Payment): 1.750%
    Emergency Loan (Amount of Actual Loss): 3.750%     

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.         

Commodity and Storage Facility Loans      
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.     
    Commodity Loans (less than one year disbursed): 4.750%       
    Farm Storage Facility Loans:  
        Three-year loan terms: 3.875%  
        Five-year loan terms: 4.000%  
        Seven-year loan terms: 4.125%  
        Ten-year loan terms: 4.375% 
        Twelve-year loan terms: 4.500%  
    Sugar Storage Facility Loans (15 years): 4.750%   

More Information
To learn more about FSA programs, producers can contact their local USDA Service Center.