The Trough: Food for thought for Farm Credit Lenders

What's in this issue?

Understanding the "Farm-Product Purchaser Problem"

UCC filings vs. EFSs: what's the difference?

When an EFS makes sense and when it may not

A practical checklist for Farm Credit lenders

Due to tighter margins, variable profitability and reduced cash flow, many agricultural borrowers are seeking incremental credit expansions from Farm Credit lenders on their existing facilities, and we expect that trend to continue this year. Access to “Bulge” financing has become critical for agricultural borrowers in certain sectors to manage cash flow timing and may be sought with increasing frequency during the upcoming year. In this first edition of The Trough, we briefly provide insight into the agricultural credit landscape in 2026, describe bulge financing and its function during this turbulent time, and provide a case study example illustrating how lenders are deploying this tool in practice.