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Farmers plan to use federal bridge payments mainly to reduce debt

A new survey shows nearly half of producers intend to use the payments to pay down debt rather than expand operations or invest in equipment.

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Farmers plan to use federal bridge payments mainly to reduce debt
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Nearly half of American farmers plan to use federal assistance to pay down debt rather than invest in their operations, according to a recent survey.

Purdue University and the CME Group, which conducts a monthly poll of about 400 agricultural producers, asked farmers how they expect to use payments from the Farmer Bridge Assistance Program.

Nearly half said they would use the money to pay off debt, while more than a quarter said they would use it to improve working capital. Smaller shares said they would invest in machinery or cover family living expenses.

The Farmer Bridge Assistance Program, announced in late December, provides $11 billion in one-time payments to row crop producers facing trade disruptions and rising production costs. According to the federal government, the program is intended to address “market disruptions, elevated input costs, persistent inflation, and market losses.”

The enrollment period opened Feb. 23 and runs through April 17, 2026.

“Improving the farm economy is our top priority at USDA, and we have simplified and streamlined the application process for the bridge program to ensure producers get the financial assistance they need as quickly as possible as we’re kicking off the spring planting season,” said U.S. Secretary of Agriculture Brooke Rollins in a press release when the enrollment period opened.

“If our farmers are not economically able to continue their operations, then we will not be able to feed ourselves in this country,” she added.

Recent credit data also suggests financial pressure across parts of the farm sector. In the third quarter of 2025, agricultural credit conditions in the Seventh Federal Reserve District — Illinois, Indiana, Iowa, Michigan and Wisconsin — showed loan demand rising compared with the previous year, while loan repayment conditions remained weak.

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