Nebraska Farmers Face Rising costs, Declining Repayment Rates: Farm Bureau Report
HASTINGS, Neb. – The Nebraska Farm Bureau released a report Monday detailing the economic pressures currently facing agricultural producers in the state. The assessment indicates that increasing farm expenses, notably for equipment and maintenance, are outpacing commodity prices.
Despite a slight improvement in the agricultural economy barometer at the end of October, spurred by a recent trade agreement with China, significant challenges remain. Nebraska Farm Bureau President Mark McHargue emphasized the potential for broader economic consequences if the agricultural sector’s profitability continues to decline.
“The financial health of agriculture impacts everyone,” McHargue stated. “if farms aren’t profitable, it affects wages, the cost of living for farm employees, and the overall economic vitality of Nebraska communities.”
According to Farm Bureau Economist Abygail Streff, the banking sector is also showing signs of strain.Repayment rates on operating loans have decreased in both 2024 and 2025, though not yet at levels indicating widespread bankruptcies or a full-scale agricultural recession. Concurrently, demand for all types of loans – including capital, small, and operational loans – has risen.
Streff attributed this increased demand to higher interest rates, which further escalate production costs for farmers. “Rising interest rates combined with increased loan demand create a challenging financial environment,” she explained.
In light of these difficulties, McHargue advised farmers to concentrate on aspects of their operations they can control. This includes prioritizing livestock care,ensuring harvested grain is properly stored in good condition,and actively seeking the best possible market prices for their crops through collaboration with experienced marketers.
Note: This rewrite preserves all verifiable facts from the original article,including the dates (2024 & 2025) mentioned in relation to loan repayment rates. It avoids any speculative language and focuses on presenting the data as reported by the Nebraska Farm Bureau. The link and copyright information were omitted as they are not part of the core news content.