Lenders say discipline and communication separate operations that withstand downturns from those that struggle.

From the outside, the farm seemed to be thriving.

Crops were planted and harvested, machinery clean and well-kept, a couple bins stood filled with grain ready for market, the yard was clean and the house tidy.

The farmer was well respected in the community, admired for always finding a way to make things work despite difficult situations faced by many of his colleagues.

But when eastern Iowa ag lender Pete Burmeister paid a visit and opened the books to look beyond the appearance of success, a different picture emerged. After several years of rising costs, lower commodity prices and tightening margins, the farmer finally admitted the stress of keeping it going was overwhelming and kept him awake at night.

“I feel like I’m always one decision away,” the farmer told Burmeister.

“And that’s what stress initially looks like,” Burmeister explained. “It’s not one of those headlines … It’s not absolute failure. It’s just a slow drift where things get a little more short term.”

Burmeister, relationship officer at Farm Credit Services of America, and Jeff Burgus, president of Mediapolis Savings Bank, shared common farmer stories and how best to navigate farm financial stress at the 98th annual Iowa State University Soil Management and Land Valuation Conference in Ames last month. 

It’s a timely topic in 2026 as farm bankruptcies rise nationwide and Iowa farmers face tight margins amid high input costs and low commodity prices, they said.

“What we’re seeing right now is the bottom five to 10% of grain producers struggling,” said Burmeister. A lot of things in agriculture look fine until you get close enough to see what’s really going on, he said.

Burgus added, “Today, I think we’re banking a generation of farmers that have yet to really go through a tough time on the farm. My fear is that as a group … will they have a tough time dealing with the emotions and learning how to cope”

Discipline, both lenders said, is what separates operations that withstand downturns from those that struggle.

PICTURED ABOVE: Burmeister 


Tips for Navigating stress

Producers weathering the current downturn share several common characteristics, Burmeister said. Understanding their financial situation, maintaining good financial records, monitoring cash flow, reviewing numbers, calculating breakevens and willingness to make necessary changes are critical components of navigating financial stress.

“They’re aware. They provide well-structured balance sheets. They do cash flows, some of them monthly. They know their numbers. They run the breakevens, and they don’t just do it when they need their operating line renewed,” Bur­­meister explained. 

“When bad things happen to them, they’re the ones who are willing and able to enact a plan of change.”

They’re accountable, set timelines, communicate details and stay in control of their operation, he added.

Burgus said farmers cannot ab­­andon the discipline that helped them succeed during better financial times. The lessons learned during the 1980s farm crisis continue to influence how lenders evaluate financial risk today. 

During that period, many producers expanded operations amid strong commodity prices and rising land values, only to find themselves caught when interest rates surged and markets weakened.

He stressed the importance of avoiding major financial decisions based on temporary market conditions.

“We cannot allow ourselves to make long-term decisions on short-term information,” he said. “$7.50 corn didn’t last very long. $15–$16 beans didn’t last very long.”

Burgus said farmers and lenders alike can become overly optimistic during prosperous times.

“I also have a theory that bankers will make their worst loans during the very best times,” he said.

Burmeister said farmers fac­­­ing financial stress shouldn’t wait until a crisis develops before seeking assistance or adjusting.

“Two years. That’s the window we missed,” he said, recalling one farm operation that delayed difficult decisions until its options became limited. “Not just showing up when something needs fixed, but staying close enough to the operation to see it coming, to ask better questions earlier and to explore options while time is still our friend.”

Burgus said agriculture has endured difficult financial cycles before and will do so again.

“We’ve been through stress before, and we will survive it, but not all of us will survive it. There are times when you have to take a different course,” he said.