Friday November 13 Ag News - Ag Credit Conditions in 7 & 10 Fed Districts - Chevron Restarts Iowa Biodiesel Facility - Ethanol Production Dips 1% Last Week - USMEF Highlights 50 years of Red Meat Export Growth - and more!

Agricultural credit conditions in the Tenth District Fed District remained subdued 

Agricultural credit conditions in the Tenth District remained subdued but deterioration slowed in the third quarter. As row crop prices increased during recent months, farm income and loan repayment rates declined at the slowest pace since early 2024 across most of the region. Although credit conditions remained tight, problem loan rates were steady and the share of lenders reporting severe farm loan portfolio stress remained limited. Despite tight farm finances and slightly higher interest rates, cropland values remained strong and growth in ranchland values was notable.

Although the outlook for the agricultural economy remained subdued, acceleration in financial stress eased alongside some relief from higher crop prices. The spike in fuel prices as harvest neared raised concerns about costs, but crop prices likely mitigated the additional margin pressures for many farms. In addition, the recent distribution of crop insurance payments has likely provided modest support. While some pressures have eased, profit opportunities remain narrow and risks of gradual deterioration in farm financial conditions are still elevated.

Section 1: Farm Finances and Credit Conditions
Deterioration in farm financial conditions eased alongside higher crop prices. The pace of decline in farm income slowed for the fourth consecutive quarter. Cattle prices remained strong despite declining slightly in recent months and crop prices increased to their highest level since 2024, likely boosting revenue for crop farmers.

Despite reduced pressure in most Tenth District states, conditions in Oklahoma tightened. The pace of decline in farm income slowed in all states expect Oklahoma. More than 40% of lenders in Oklahoma reported that farm income was lower than a year ago, up from 10% in the previous quarter. High cattle prices had supported farm income in the state during recent months, but respondents highlighted growing concerns about drought and rising costs.

Alongside a slower decline in farm income, deterioration in agricultural credit conditions remained modest. District lenders reported that loan repayment rates declined only slightly from a year earlier. About 30% of Oklahoma lenders reported that repayment rates were lower than a year ago, compared with about 15% of in other states.

Problem loan rates were steady and remained modest for most lenders. The share of lenders with more than 10% of their farm loan portfolio on the watch list fell slightly from around 30% in 2025 to about 25% in 2026. However, the share of lenders with 5% to 10% of their portfolio on the watch list rose slightly over the same period. The share of lenders with loans on the classified list remained nearly unchanged.

Liquidation to improve balance sheets was also steady and remained minimal for most lenders. A quarter of lenders reported they had no farm borrowers planning to sell mid- to long-term assets to improve working capital and another quarter had less than 5% of borrowers with any liquidation plans. Only about a fifth of lenders reported that more than 10% of their farm borrowers were planning to sell assets, similar to a year ago.

With some easing in financial pressures in recent months, growth in loan demand showed signs of cooling. The pace of increase in demand for non-real estate farm loans was similar to last quarter and slower than recent years. Consistent with historical patterns, lenders also reported that fund availability had become more balanced alongside softer loan demand.

Section 2: Interest Rates and Farmland Values
Growth in loan demand also eased alongside a slight increase in farm loan interest rates. Average interest rates on farm loans edged up from the second quarter to about 7% for real estate loans and 7.5% for operating loans. The increase was broadly consistent across all states and rates remained substantially above their 20-year averages.

Cropland values remained firm and ranchland values showed further signs of strength. District ranchland values rose almost 10% from last year, irrigated cropland values increased by 5%, and nonirrigated cropland values held steady. Although cash rents for irrigated and nonirrigated land were unchanged from last year, they recovered after weakening earlier in 2026 as commodity prices rose.

Developments in farmland values were similar across most states in the region. Ranchland values rose across all District states, particularly in Kansas, Missouri, and the Mountain States, where they increased nearly 15% from last year. Only nonirrigated land values in Nebraska declined this quarter, while nonirrigated land values in Kansas climbed a robust 7%.

Nebraska farmland value was 3% lower for non-irrigated land in Q3 compared to a year ago, irrigated ground was up 3% in value in Q3 compared to last year, and ranchland value was also up 3% in value in Q3 compared to 2025.  

A total of 140 lenders responded to the Second Quarter Survey of Agricultural Credit Conditions in the Tenth Federal Reserve District—an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri. 



Third Quarter Midwest Farmland Values Moved Up Moderately in Fed Dist 7

In the third quarter of 2026, the Seventh Federal Reserve District’s agricultural land values moved up 4% from a year ago, the largest year-over-year gain for a quarter in 2026 thus far. In addition, values for “good” farmland in the District overall were up 2% in the third quarter of 2026 from those in the second quarter, according to responses from 86 District agricultural lenders who completed the October 1 survey. Indiana, Iowa, and Wisconsin had year-over-year increases in farmland values, while Illinois was the only District state reporting no year-over-year change. There were quarterly increases in Illinois, Iowa, and Wisconsin farmland values in the third quarter of 2026; Indiana agricultural land values saw no change from the second quarter of 2026.

Iowa farmland value was up 3% for the quarter and up 6% year over year.  

Credit conditions
District agricultural credit conditions softened once again in the third quarter of 2026 (see figures 2 and 3). In the July through September period of 2026, repayment rates for non-real-estate farm loans were lower than a year earlier; this was the 12th quarter in a row of lower rates. In addition, renewals and extensions of non-real-estate agricultural loans were higher than a year earlier for the 13th consecutive quarter. The District still saw stronger demand for non-real-estate farm loans in the third quarter of 2026 relative to a year ago; this marked the 12th successive quarter of stronger demand. The availability of funds for agricultural lending was lower than a year ago for the 14th quarter in a row.
The breakdown of the index numbers for the third quarter of 2026 follows:
• The index of demand for non-real-estate farm loans was 120; 37% of survey respondents observed higher loan demand compared
with a year ago, while 17% observed lower demand.
• The index of funds availability stood at 91; 11% of survey respondents noted that their financial institutions had more funds
available to lend than a year ago, while 20% noted they had less.
• The index of repayment rates for non-real-estate agricultural loans was 79; only 3% of responding lenders noted higher rates of
loan repayment than a year ago, while 24% noted lower rates.
• The index of renewals and extensions of non-real-estate farm loans was 121; 24% of survey respondents reported more of them
than a year earlier, while just 3% reported fewer.

Collateral requirements for farm loans in the third quarter of 2026 rose from the same quarter of last year; 23% of the survey respondents reported that their financial institutions required more collateral, while none reported requiring less.

The District’s average loan-to-deposit ratio rose to 81.4% in the third quarter of 2026. The gap between the average loan-to-deposit ratio and the average level desired by the responding bankers narrowed from a year ago to a little above 2 percentage points, with 42% of the survey respondents answering that their respective banks were below their targeted levels.

Agricultural interest rates rose moderately during the third quarter of 2026, though operating loans and feeder cattle loans were still lower than a year ago. As of October 1, 2026, the District’s average nominal interest rates on new operating loans (7.41%) and feeder cattle loans (7.47%) were at their highest levels since the third quarter of 2025. The District’s average nominal interest rate on farm real estate loans (7.27%) climbed to its highest level since the second quarter of 2024

Looking forward
For the final quarter of 2026, 13% of survey respondents expected District agricultural land values to rise and 14% expected them to decline (73% expected them to be stable). In line with these survey results, softer demand by agricultural producers for farmland will likely extend into 2027: 29% of survey respondents expected farmers to have weaker demand to acquire farmland this fall and winter compared with a year earlier, while 19% expected stronger demand. In contrast, 27% of survey respondents anticipated nonfarm investors to have stronger demand to purchase farmland over the same period, while 18% anticipated weaker demand from this market segment. Furthermore, responding lenders projected an increase in the volume of agricultural land transfers during this fall and winter relative to a year ago.

Net cash earnings (which include government payments) for crop farmers were expected to be lower over the next three to six months (i.e., during the fall and winter) than their levels of a year ago; 38% of survey respondents forecasted them to be higher, while 46% forecasted them to be lower. Similarly, 17% of responding lenders forecasted net cash earnings for cattle and hog farmers to increase over the next three to six months relative to a year ago, while 43% forecasted them to decrease. Only 3% of survey respondents expected net cash earnings for dairy farmers to increase over the next three to six months relative to a year earlier, while 34% expected them to decrease. An Illinois respondent stated, “The reduction of cattle prices will likely expose some marginal borrowers.”

Twenty-one percent of survey respondents anticipated a lower volume of farm loan repayments over the next three to six months relative to a year earlier (13% predicted a higher volume). Unsurprisingly, given lower crop and livestock income expectations, forced sales or liquidations of farm assets owned by financially distressed farmers were anticipated to rise in the next three to six months relative to a year ago; 31% of the responding lenders projected them to increase, while 8% projected them to decrease. Non-real-estate farm loan volumes were forecasted to be larger in the last three months of 2026 compared with the same three months of 2025, notably for operating loans and loans guaranteed by the Farm Service Agency. Farm real estate loan volumes were also forecasted to be larger in the final three months of 2026 compared with the same three months of a year earlier. 



Iowa Pork Producers Mark 10th Year Providing Meals on Giving Tuesday
    
For the 10th consecutive year, the Iowa Pork Producers Association (IPPA) will spend Giving Tuesday at Central Iowa Shelter & Services (CISS), serving breakfast and sharing fellowship with Iowans experiencing homelessness.

On Tuesday, December 1, IPPA will join Fareway Stores volunteers and community leaders to prepare and serve a hearty breakfast, continuing a tradition rooted in nourishment, kindness and connection.

This year’s effort will also expand beyond Des Moines to serve Iowans experiencing homelessness in Ottumwa, Grinnell and Ames.

The Des Moines event will take place from 6:30 to 8:30 a.m. at CISS, 1420 Mulberry Street. Fareway will supply and cook more than 100 pounds of bacon, 50 pounds of sausage patties and other breakfast favorites. Iowa pork producers will help serve guests and provide care bags filled with stocking hats, hand warmers, lip balm and pork sticks.

For Iowa’s pork producers, the annual event puts their We Care commitment to caring for communities into action, offering warmth, comfort and nourishment beyond the breakfast table.

“Everybody has problems, some bigger than others, but this is just one great way for us to be able to give back to the community and show that we do care,” said Doug Gruver, an IPPA board member and pig farmer from Sully.

The Giving Tuesday tradition began with a simple observation by CISS staff: A hearty bacon breakfast seemed to help guests start their day on a better note. That experience inspired an annual gathering that brings community members together to share food and support shelter guests.

“At Fareway, we believe everyone deserves a warm meal, a welcoming smile, and the dignity that comes with knowing they matter. Giving Tuesday is an opportunity for our employees to serve alongside our community partners at Central Iowa Shelter & Services and the Iowa Pork Producers to share a meal with residents who call the shelter home. We are grateful for the opportunity to give back in a meaningful way and support the important work CISS does every day to provide hope, stability, and care for those who need it most,” said Reynolds W. Cramer, CEO of Fareway Stores, Inc.

As IPPA marks a decade of participation, the event remains a reminder that giving back can be as personal as preparing a meal, welcoming a guest or taking time to listen.

“Giving Tuesday often focuses on financial gifts, and this partnership reminds us that generosity takes many forms. By providing a warm breakfast and taking time to share in community, Iowa Pork and Fareway are helping ensure our clients experience dignity, connection, and the comfort of a meal shared with others. It's a meaningful way to celebrate the spirit of giving,” said Melissa O’Neil of CISS.

Community leaders and volunteers are invited to help with breakfast preparation, serving guests or cleanup. Whether participating for 20 minutes or an hour, volunteers can contribute to a tradition that has brought Iowa’s pork producers and their neighbors together to help Iowans in need for 10 consecutive years.



Chevron Decision to Restart Iowa Biodiesel Facility Displays Power of Robust Renewable Fuel Standard Blending Levels 

The Iowa Renewable Fuels Association (IRFA) welcomed today’s announcement that Chevron will restart its biodiesel production facility in Ralston, Iowa, supported by a feedstock supply agreement with Landus Cooperative.

The Ralston facility was idled in 2024 following a downturn in biodiesel market conditions resulting from lapsed federal tax policies and weak Renewable Fuel Standard (RFS) blending targets. Chevron plans to restart operations in phases, beginning with staffing, maintenance, safety, and operational-readiness activities.

“This may be the biggest sign yet of the powerful impact of the robust RFS blending levels finalized by the Trump EPA earlier this year,” said Monte Shaw, Executive Director of IRFA. “A major facility is coming back online, creating new demand for Iowa-grown soybeans and creating good-paying jobs in rural Iowa. IRFA strongly urges the Trump Administration to maintain the RFS and to reject any actions that would reverse course. As the saying goes – if it ain’t broke, don’t fix it.”

Iowa has the agricultural resources, infrastructure, and industry leadership to grow its renewable fuels sector. Strong and stable federal and state policies can help turn that potential into more investment, more production, and more opportunities for rural communities.

“Strong renewable fuels blending levels aren’t just numbers on a spreadsheet. They translate into real investments, real markets for farmers, and real jobs in rural communities,” Shaw said. “If we want to see more announcements like this, we need federal and state policy that keeps renewable fuels moving forward.”



Weekly Ethanol Production for 11/06/2026

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 6, ethanol production dipped 1.1% to 1.13 million b/d, equivalent to 47.46 million gallons daily. Yet, output was 5.1% higher than the same week last year and 6.5% above the five-year average for the week. The four-week average ethanol production rate increased 1.4% to 1.12 million b/d, equivalent to an annualized rate of 17.18 billion gallons (bg).

Ethanol stocks edged down 0.4% to 24.3 million barrels. Still, stocks were 9.6% more than the same week last year and 14.2% above the five-year average. Inventories thinned in the West Coast (PADD 5) but built across the other regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, lowered 0.5% to 8.77 million b/d (134.40 bg annualized). Demand was 2.9% less than a year ago and 3.3% below the five-year average.

Refiner/blender net inputs of ethanol slid1.2% to a 30-week low of 888,000 b/d, equivalent to 13.61 bg annualized. Net inputs were 0.8% less than year-ago levels and 1.3% below the five-year average.

Ethanol exports declined 4.8% to 140,000 b/d (5.9 million gallons/day). It has been more than three years since EIA indicated ethanol was imported.



USMEF Conference Marks 50 Years of Red Meat Export Growth, but with Eyes Firmly on the Future

U.S. Meat Export Federation (USMEF) members from throughout the nation gathered in Palm Springs, Calif., Wednesday for the organization’s annual Strategic Planning Conference. The meeting attracted a record number of participants as USMEF celebrated its 50th anniversary.

USMEF Chair Jay Theiler, executive vice president of Idaho-based Agri Beef Co., welcomed the group by paying tribute to those who founded the organization a half-century ago.

“We all owe a debt of gratitude to the past leaders of USMEF for their vision of foresight, which made possible these 50 years of growth and success,” Theiler said. “But to properly honor their legacy, we need to keep our eye on the future and continue to build on USMEF’s strengths. One of our greatest strengths is our diverse membership, bringing many sectors of U.S. agriculture together to work toward a common goal.”

USMEF President and CEO Dan Halstrom, who began his career as an exporter more than 40 years ago, echoed this theme, noting the enormous obstacles the U.S. meat industry faced decades ago, when access to global markets was severely limited and exports accounted for just a small fraction of total production and sales.

Halstrom highlighted Latin America as a shining example of how market access gains achieved through free trade agreements can pave the way for tremendous pork and beef export growth. He cited Central America, Colombia and the Dominican Republic as markets that were once extremely price-driven, but now consumers crave the quality, consistency and versatility of higher-value red meat cuts.

“Look at the growth of U.S. pork exports into these markets in the last 15 years – it’s just amazing,” he said. “Pork to Colombia this year is on track to be over $400 million, and Central America could seriously touch $700 million. That's the fastest growing area in the world for pork. And when we look at beef, there was a time in the Dominican Republic when beef pricing made it tough to sell anything. But now there’s a growing middle class with more spending power and a greater appreciation for quality.”

Halstrom also addressed the importance of developing new products – including protein snacks – that appeal to consumers whose top priority is convenience. He specifically cited recent success for U.S. pork in Mexico’s convenience store sector.

“Just a few years ago we had nothing going on in these stores,” Halstrom explained. “But now there are eight different U.S. pork items at 22,000 Oxxo stores in Mexico and about 8,000 7-Elevens. This is exactly the sort of thing we need more of – value-added products that appeal to young consumers.”

USMEF members then heard from the event’s keynote speaker, geopolitical strategist and author Peter Zeihan, who discussed global trade, energy security and the economic implications of lower birth rates and aging populations around the world.

While noting that beef and pork exports have achieved tremendous success in north Asia, Zeihan explained that demographic trends in the region underscore the importance of market diversification for the U.S. meat industry.

“In Japan, Korea and China, they now have three times as many people in their 50s as they have children,” Zeihan said. “This is a market that is going to shrink – it has to shrink. Taiwan's the best of the batch, and it doesn't exactly look great.”

Zeihan cited Southeast Asia as a promising region for long-term growth, specifically highlighting Indonesia and Vietnam. He noted that U.S. trade officials are pursuing market access improvements in this region that could eliminate trade barriers for U.S. red meat, but warned that more resources may be needed for these efforts to be successful.

“Here's a complication: the way the United States is now pursuing trade deals, framework agreements, sectorial agreements, things that don't have to go through Congress – they don't have to be ratified,” Zeihan explained. “So why would [trading partners] abide by them? Any U.S. deal that is a framework or a sectoral deal has to be enforced every single day. The Office of the U.S. Trade Representative, at its height in post-war world, only had 300 staff. Now it's closer to 200. You know how many Australia has? Six thousand.”

The conference continues Thursday with a panel discussion featuring CattleFax CEO Randy Blach, National Pork Board CEO Dr. David Newman, Iowa Corn Promotion Board CEO Craig Floss, Interra International founder and CEO Steve Isaf and Jihae Yang, who oversees USMEF’s operations in the Asia Pacific. The meeting will conclude on Friday with the election of a new USMEF officer team.