Iowa Lenders Warn Bottom 5%-10% of Grain Farmers Are Struggling as Margins Tighten
Updated
Updated · iowafarmbureau.com · Jun 15
Iowa Lenders Warn Bottom 5%-10% of Grain Farmers Are Struggling as Margins Tighten
2 articles · Updated · iowafarmbureau.com · Jun 15
Summary
At Iowa State University’s 98th Soil Management and Land Valuation Conference, lenders said financial stress is spreading across farms even when operations still look healthy from the outside.
Rising input costs, lower commodity prices and tighter margins are squeezing producers, with Farm Credit Services of America’s Pete Burmeister saying the bottom 5%-10% of grain farmers are now struggling.
Lenders said the farms holding up best know their numbers—cash flow, balance sheets and breakevens—and act early rather than waiting until a crisis cuts off options.
Jeff Burgus of Mediapolis Savings Bank warned against making long-term decisions on short-term price spikes, citing brief eras of $7.50 corn and $15-$16 soybeans.
The discussion framed 2026 stress as part of agriculture’s recurring financial cycles, echoing lessons from the 1980s farm crisis while warning that not every operation will survive this downturn.