‘We Are Going to See Some Loss’: Minnesota Ag Lenders Brace for a Volatile 2026

As Minnesota farmers begin to close their books on a tough 2025 and look ahead to more economic uncertainty in 2026, many may be reaching for the antacid.

This past year has been marked by high input costs, trade turmoil and cratering crop prices that have kept farmers’ profit margins low. A recent credit survey from the Federal Reserve Bank of Minneapolis showed that lenders expect farmers to apply for even more loans as next year rolls around. 

And most of those loans don’t come from big nationwide banks. The vast majority actually come from smaller, local community banks, whose staff often know their clientele personally.

Terri Barrett has spent her entire 17-year banking career at Bravera Bank’s branch in Kerkhoven. The town’s population is barely over 800 people, and Barrett knows many of her clients well. She recalled one specific client who mentored her on the ins and outs of the agriculture industry at the start of her career.