Northern Corn Belt Farmers Struggle with Falling Incomes Amid Strong Crop Yields

A recent survey by the Minneapolis Federal Reserve paints a dismal picture of farm incomes in the northern Corn Belt. The first quarter credit survey, released in May 2026, found that 76% of agricultural lenders reported a decline in farm incomes during the first three months of the year.

The region's farmers are facing financial difficulties despite record corn yields, near-record soybean production, and historically strong wheat crops. Corn prices remain a major concern, with Joe Mahon, director of regional outreach for the Minneapolis Fed, noting that 'compared to where prices were a few years ago when incomes were strong, they're still quite low, and that's especially true for corn.'

The financial pressure is forcing farmers to tighten their belts. Capital spending is contracting sharply, with 65% of lenders reporting decreased investment in farm equipment and buildings. Instead of investing, farmers are taking on more debt, 46% of lenders saw increased loan demand, while nearly half reported more borrowers needing renewals or extensions on existing debt.

The only bright spot came from cattle country, where beef prices continue their multi-year upward trajectory. However, the outlook remains bleak: only 7% of district bankers expect farm incomes to increase in the second quarter, while 49% anticipate further declines.