In 2026, alternative proteins remains one of the most talked about areas of food law. For example, the year is not even at its halfway point, and there have already been multiple court rulings and numerous legislative enactments related to alternative proteins. This article will further explore those updates.&nbsp;



Background on Alternative Proteins Legislation&nbsp;



Alternative proteins is a term that is used to describe lab-grown protein products or meat substitutes, such as plant or insect-based proteins. Over the past several years, the regulation of alternative proteins has received a lot of attention at the state level. Specifically, states have passed laws requiring these products to bear certain labeling disclosures or prohibiting them from using terms that have historically been associated with “traditional” meat food products. For instance, in Alabama, cell-cultured meat is prohibited from being labeled as “meat.” However, in Oklahoma, a cell-cultured meat product may be labeled as “meat” if it also contains the disclosure “lab-grown.” There are currently 23 states with laws creating specific labeling requirements for alternative proteins.&nbsp;



Additionally, over the past few years, eight states have passed legislation that restricts the sale or manufacture of cell-cultured proteins. Three of these prohibitions are temporary, while the other 5 are permanent. Another recent trend involves prohibitions on the expenditure of state money on cell-cultured meat. To learn more about the specifics of these state laws, click&nbsp;<a href="https://nationalaglawcenter.org/state-compilations/alternative-protein-laws-state-compilation/">here</a>&nbsp;to visit NALC’s Alternative Proteins Laws State Compilation.&nbsp;



2026 Updates&nbsp;



So far, five states have passed legislation related to alternative proteins. South Dakota passed&nbsp;<a href="https://legiscan.com/SD/text/SB124/id/3385495">legislation</a>&nbsp;that would ban the “sell[ing], offer[ing] for sale, hold[ing] for sale, or distribut[ing] . . . any product containing cell-cultured protein from July 1, 2026 to June 30, 2030.&nbsp;<a href="https://legiscan.com/MS/text/HB1153/id/3395224">Mississippi</a>&nbsp;became the first state in the nation to ban cultivated dairy. Defined as a product that “intend[s] to replicate or to substitute for milk and that is derived from animal cells cultured outside of a live animal,” a cell-cultured dairy product is prohibited from being sold or offered for sale in the state of Mississippi.&nbsp;



Further, three states passed legislation that creates labeling requirements for alternative proteins. Ohio now requires that cultivated-protein food products, plant-protein food products, insect-protein food products, and fabricated-egg products must bear a “qualifying term,” such as “vegan” or “fake,” if the product’s label includes terms or language suggesting or describing it as a meat or egg product. Ohio’s bill directs state education providers to adopt a policy preventing their purchase of cell-cultured protein food products. Ohio Rev. Code&nbsp;§&nbsp;3313.8110.&nbsp;



Similar to Ohio’s labeling law, Virginia passed&nbsp;<a href="https://lis.virginia.gov/bill-details/20261/SB186/text/CHAP0108">legislation</a>&nbsp;that classifies plant-based, insect-based, fungus-based, and cultivated protein food products to be misbranded if it uses a term which “identifies the food as a meat food product or poultry product” unless it bears a “qualifying term” in close proximity. The Virginia law includes terms like “imitation,” “meatless,” “plant-based,” or “veggie” as qualifying terms.&nbsp;



Last, Idaho passed&nbsp;<a href="https://legiscan.com/ID/text/S1270/id/3375722">legislation</a>&nbsp;that required cell-cultivated animal proteins to be labeled with the phrases “lab-grown,” “cell-cultivated,” or “cell-cultured.” Further, while the Idaho law does not exclude cell-cultivated animal proteins from being labeled with traditional meat terms like “beef” or “chicken,” it does prohibit the use of specific meat cut terms like “steak” or “brisket” on cultivated meat “not derived from traditional livestock production or wild game harvest.”&nbsp;



2026 Litigation Updates&nbsp;



A number of the alternative protein laws that have been enacted in previous years have faced challenges in the courts, and so far in 2026, three notable decisions have been made.&nbsp;



Texas Cell-Cultured Protein Ban&nbsp;



First, in January, a federal court in Texas&nbsp;<a href="https://nationalaglawcenter.org/wp-content/uploads/2026/03/TX-cell-cultred-order-1-30-26.pdf">ruled</a>&nbsp;that the federal Poultry Products Inspection Act (PPIA) does not preempt Texas’ ban on cell-cultured proteins. The PPIA is the federal law that “regulates the processing, inspection, distribution, labeling, and sale of poultry products sold in interstate commerce,” and it includes an express preemption clause that prohibits states from imposing additional requirements “with respect to premises, facilities, and operations of any official establishments.” Here, the court found that Texas’ ban on cell-cultured proteins does not fall within the scope of the PPIA’s preemption clause because it is a “complete sales ban” and has no impact on food safety or behaviors that could lead to an adulterated chicken product. Thus, the court dismissed the plaintiff’s preemption claim. However, because only one of the plaintiff’s claims was dismissed, the litigation remains ongoing. To read more details about this case, click&nbsp;<a href="https://nationalaglawcenter.org/texas-food-law-litigation-updates-part-2/">here</a>for the NALC article “Texas Food Law Litigation Updates: Part 2.”&nbsp;



Texas Alternative Protein Labeling Law



Additionally, in January, a Texas federal court struck down the&nbsp;<a href="https://law.justia.com/codes/texas/health-and-safety-code/title-6/subtitle-a/chapter-431/subchapter-d/section-431-082/">Texas law</a>&nbsp;that created labeling requirements for “analogue products.” These products are defined as “a food product derived by combining processed plant products, insects, or fungus with food additives to approximate the texture, flavor, appearance, or other aesthetic qualities or the chemical characteristics of any specific type of egg, egg product, fish, meat, meat food product, poultry, or poultry product.” Here, the court found that the Texas law was an unconstitutional violation of the First Amendment. Because the “speech” at issue here was the labels used on food products, it was considered “commercial speech.” Here the court determined that this commercial speech was improperly restricted by Texas because 1) the labels were not misleading, 2) the law did not target a substantial government interest, 3) Texas did not directly advance the government interest asserted, and 4) the law did not achieve the desired goal in the least restrictive way.&nbsp;



Because the Texas law was found to violate the First Amendment, it was struck down. However, because it was determined earlier in the case that the plaintiffs did not have standing to challenge the cell-cultured product labeling laws, those are still enforceable. To learn more about this case, click&nbsp;<a href="https://nationalaglawcenter.org/texas-food-law-litigation-updates-part-1/">here</a>&nbsp;to read NALC article “Texas Food Law Litigation Updates: Part 1.”&nbsp;



Florida Cell-Cultured Meat Ban&nbsp;



Last, in March 2026, the Eleventh Circuit published an&nbsp;<a href="https://media.ca11.uscourts.gov/opinions/pub/files/202413640.pdf">opinion</a>&nbsp;that upheld Florida’s&nbsp;<a href="https://www.flsenate.gov/Laws/Statutes/2024/0500.452">ban</a>&nbsp;on the production and sale of cell-cultured meat. This ruling is noteworthy because it was one of the first times an appellate court has weighed in on the regulation of the sale of alternative proteins. However, this was not a ruling on the merits. The Eleventh Circuit determined here that the distinct court’s denial of a preliminary injunction was proper and agreed that the Florida ban was likely not preempted by the PPIA. Nevertheless, while the preliminary injunction question was at the Eleventh Circuit, the lower district court did rule to dismiss the preemption claims and that ruling is final. The litigation remains ongoing though as the district court considers a separate claim – whether Florida’s law violates the Dormant Commerce Clause. For more detail about the Eleventh Circuit’s decision, click&nbsp;<a href="https://nationalaglawcenter.org/eleventh-circuit-takes-up-floridas-ban-on-cell-cultured-meat/">here</a>&nbsp;to read NALC article “Eleventh Circuit takes up Florida’s Ban on Cell-Cultured Meat.”&nbsp;



To stay up to date on emerging news stories related to alternative proteins, click&nbsp;<a href="https://lp.constantcontactpages.com/su/PDswXKO/TheFeedSignUp">here</a>&nbsp;to subscribe to NALC’s bi-weekly newsletter, “The Feed.”&nbsp;



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Stone, Emily. &#8220;<a href="https://southernagtoday.org/2026/05/12/alternative-proteins-litigation-and-legislation-updates/">Alternative Proteins: Litigation and Legislation Updates.</a>&#8221; Southern Ag Today 6(21.5). May 22, 2026. <a href="https://southernagtoday.org/2026/05/12/alternative-proteins-litigation-and-legislation-updates/">Permalink</a>

Alternative Proteins: Litigation and Legislation Updates

In the last three years, the global rice market has been dominated by the supply side, with global production outpacing global demand and leading to increasing ending stocks and decreasing international prices. A lot has been said already about the role of India’s production and exportable surplus in previous issues (e.g.,&nbsp;<a href="https://southernagtoday.org/2025/05/15/global-market-prospects-for-u-s-long-grain-rice-for-the-upcoming-marketing-year-3/">https://southernagtoday.org/2025/05/15/global-market-prospects-for-u-s-long-grain-rice-for-the-upcoming-marketing-year-3/</a>), which is still at play in marketing year 2025/26.



The war in Iran, and particularly the situation in the Strait of Hormuz, has added more uncertainty/risk to the market through higher energy and input costs and trade disruptions. The impact of the war on input costs affects rice producers differently in different countries, depending on the level of input use and support policies. Producers in countries such as the U.S. that use energy-derived inputs (e.g., fertilizers) without domestic subsidies are more exposed than producers in countries that either use inputs less intensively and/or subsidize inputs (e.g., India). The trade disruptions also affect countries differently depending on how much they trade with countries in the Middle East. For example, the U.S.’s long-grain milled rice exports to Iraq and long-grain parboiled milled rice to Saudi Arabia, Thailand’s long-grain milled rice exports to Iraq, and India’s long-grain milled parboiled rice and basmati rice to Saudi Arabia and the United Arab Emirates have been disrupted. On the other hand, Vietnam’s and Mercosur’s rice exports are for the most part unaffected, given the low exposure to trade with the Middle East. Overall, the resulting higher production costs and marketing risks have resulted in a shift in the international price trend in the last month (Figure 1).



Figure&nbsp;1. Monthly average export price of long-grain rice from selected exporters.



<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="2560" height="1156" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-scaled.png" alt="" class="wp-image-43994" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-scaled.png 2560w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-1024x462.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-768x347.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-1536x694.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.4-2048x925.png 2048w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /></figure>



Arguably, the biggest factor looming on the global rice market is the growing concerns tied to potential El Niño drought conditions in Southern Asia later in 2026. Experts worry about potentially large reductions in production in Thailand, India, and the Philippines, which could shock the global rice market given their relevance as rice producers and traders. India and Thailand are the two largest exporters, and the Philippines is the largest importer of rice globally. If El Niño drought conditions materialize, we will most certainly see rice prices strengthening in the second half of 2026.&nbsp;&nbsp;&nbsp;&nbsp;



The U.S. long-grain rice industry is facing a major downturn. Planted acreage in 2026 is projected at about 1.65 million acres, the lowest in over 40 years and nearly 1.17 million acres below the 2010 peak. Acreage is expected to decline across all major producing states, led by Arkansas (-24% to 900,000 acres). The USDA (2026) projects that long-grain rice production will decrease by 20% relative to 2025, with total supply decreasing by 12% year-to-year (the smaller decrease in supply than production is due to expected increases in initial stocks and imports of 6% and 5%, respectively). Producer prices are expected to strengthen in 2026 to $12/cwt relative to the projected $10.4/cwt for 2025 (USDA, 2026). The projected price level will still be insufficient for rice farmers to break even in the current cost environment.



Given the global and regional situation, what can we expect for the upcoming 2026 marketing year? The answer hinges primarily on the war in Iran and the prospects of drought conditions throughout Southern Asia (El Niño can also undermine production in Mercosur due to wetter than expected conditions). Both factors can either offset or reinforce each other. If the war in Iran resolves (and trade through the Strait of Hormuz resumes and energy costs decrease) and the drought conditions in Southern Asia do not materialize, we could see downward pressure on rice prices to prevail in marketing year 2026/27. If both events evolve in the opposite direction, we could see significant price increases in the upcoming year. Many other plausible scenarios in between the two extremes above are possible, and therefore, watching the evolution of those two factors in the coming months would be crucial for rice actors in the U.S. and worldwide. Given the production disruption it could generate, it could be argued that an El Niño year would disrupt the global rice market (and strengthen rice prices) more than the war in Iran.&nbsp;&nbsp;



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References



FAO, 2026. Rice Price Update. May 2025. Available at&nbsp;&nbsp;&nbsp;<a href="https://www.fao.org/markets-and-trade/commodities/rice/fao-rice-price-update/en/">https://www.fao.org/markets-and-trade/commodities/rice/fao-rice-price-update/en/</a>.&nbsp;



USDA, 2026. USDA WASDE Report. May 2026. Available at&nbsp;<a href="https://www.usda.gov/oce/commodity/wasde">https://www.usda.gov/oce/commodity/wasde</a>.&nbsp;



U.S. Rice Producers Association. Rice Advocate. Volume 23, Issue 16.&nbsp;



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Global Market Prospects for U.S. Long-grain Rice for the Upcoming Marketing Year

The Commodity Futures Trading Commission (CFTC) publishes weekly “Commitment of Traders” (COT) data on the positions of index funds and hedge funds in agricultural futures markets (Figure 1).&nbsp;&nbsp;The changes in these speculative futures positions have near term value in explaining fluctuations in ICE cotton futures.&nbsp;&nbsp;



For roughly two years, the hedge fund (or “non-commercial” or “managed money”) speculative position has been net short, meaning there is an excess of outright short sellers over longs.&nbsp;&nbsp;This position has been associated with a low level and relatively flat pattern of ICE cotton nearby futures settlements.



In April of 2026, the hedge fund short position in ICE cotton flipped to net long (see the thin upward green spike on the right-hand side of Figure 1).&nbsp;&nbsp;This move was associated with initial buying to cover open short positions, followed by outright new buying.&nbsp;&nbsp;This move is also associated with a twenty-cent rally in nearby ICE cotton futures.



What other market implications are there from this speculative positioning?&nbsp;&nbsp;Judging from the narrowness of many of the green spikes in Figure 1, we observe that the bullish or bearish influence of hedge fund positioning can sometimes be short lived. In the present case, hedge fund buying can act like a catalyst for higher prices, perhaps influencing prices to trend higher and move more quickly than fundamentals might justify.&nbsp;&nbsp;The same can happen in reverse, i.e., liquidation of long speculative positions can contribute to volatility.&nbsp;&nbsp;This has implications for the need for pre-harvest pricing strategies.



The current price outlook for U.S. cotton in 2026 is fundamentally neutral in terms of the year-over-year comparison of ending stocks. The 2026/27 projection of ending stocks is within 500,000 bales of the 2025/26 estimate of ending stocks.&nbsp;&nbsp;But in the near term, speculators and commercials are likely waiting for the unfolding of a so-called “weather market”, i.e., the effect of early dryness and forecasted El Niño moisture on the supply outcome.&nbsp;&nbsp;The hedge funds will play their speculative role in this outcome, and likely contribute to seasonal price volatility.



Figure 1. ICE Cotton Net Position of Index funds and Hedge Funds vs. Nearby ICE Cotton Futures Settlement



January 3, 2006 Through May 12, 2026



<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="930" height="521" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-1.png" alt="" class="wp-image-43968" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-1.png 930w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-1-768x430.png 768w" sizes="auto, (max-width: 930px) 100vw, 930px" /></figure>



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Robinson, John. &#8220;<a href="https://southernagtoday.org/2026/05/12/speculative-long-positioning-coincides-with-rising-cotton-prices/">Speculative Long Positioning Coincides with Rising Cotton Prices.</a>&#8221; Southern Ag Today 6(21.3). May 20, 2026. <a href="https://sat-wp.afpc.tamu.edu/?p=43967">Permalink</a>

Speculative Long Positioning Coincides with Rising Cotton Prices

U.S. beef exports to China have been an ever-evolving story in recent years. As shown on the chart above, exports were effectively zero until 2017 when China removed a ban on U.S. beef that dated back to 2003. Exports surged in 2021 and 2022, briefly making China a top three destination alongside Japan and South Korea. Since early 2025, beef exports to China have plummeted to very low levels amid broader trade challenges. For the first three months of 2026, beef exports to China totaled just 5.3 million pounds, a 95 percent decline from a year ago.&nbsp;



The lower exports over the past year have been driven by the lack of U.S. beef facilities registrations that are required for all food manufacturers who export into China. Over 400 U.S. beef plants lost the ability to export into China after registrations expired and were not renewed over the past year. President Trump’s summit with Chinese leader Xi Jinping in China last week led to hope from the beef industry that these expired registrations would be renewed and that larger exports to China could resume.&nbsp;



On Friday, the U.S. Meat Export Federation reported registration extensions have been granted to 425 overdue beef establishments, and an additional 77 establishments have been added, while 38 establishments remain suspended. This is good news for U.S. beef exports amid challenging export dynamics. Tight supplies of U.S. beef and high domestic prices have been a headwind to beef exports. Those headwinds remain with the renewed registrations, but China is a key market.&nbsp;



It is also worth mentioning U.S. beef exports to Hong Kong have increased over the past year, while exports to China declined. It is helpful to combine exports to both countries when looking at overall trends. While Hong Kong has offset some of the decline in exports to mainland China, combined exports to China and Hong Kong remain well below the levels seen during 2021–2024, when mainland China was a much larger buyer.



<figure class="wp-block-image aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="468" height="304" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.2.png" alt="" class="wp-image-43976" style="aspect-ratio:1.539510184671475;width:453px;height:auto"/></figure>



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Maples, Josh. &#8220;<a href="https://southernagtoday.org/2026/05/12/u-s-beef-exports-to-china-bottleneck/">U.S. Beef Exports to China Bottleneck.</a>&#8221; Southern Ag Today 6(21.2). May 19, 2026. <a href="https://southernagtoday.org/2026/05/12/u-s-beef-exports-to-china-bottleneck/">Permalink</a>

U.S. Beef Exports to China Bottleneck 

Authors: Charley Martinez, Mason Collins, and Eli Mundy



As mentioned in previous Southern Ag Today (SAT) articles (<a href="https://southernagtoday.org/2022/07/current-non-real-estate-farm-debt/">Martinez and Ferguson 2022, Martinez 2023</a>), monitoring Non-Real Estate Farm Debt provides insight into debt health. At the time of this article, planting season has begun or is in full swing for others, input prices have increased over the last few weeks, and livestock prices have remained at high levels. Last month, the Federal Financial Institutions Examination Council released its most recent Call Reports, which provided insights into the final quarter of 2025. As a refresher, every commercial bank in the U.S. submits its quarterly Reports of Condition and Income, which are known as call reports. Within these call reports are totals of agricultural loans and the status (on time or late) of the loans. Figure 1 displays the total loan volume (yellow line) and loan volume for three late categories (30-89 days late, 90+ days late, non-accrual) for the last 12 quarters (3 years). The totals are for all the Southern Ag Today States. 



In the fourth quarter of 2025, total non‑real estate loans (yellow line) continued to trend upward overall and was 4% higher compared to 2024 Q4. Non-accrual (blue line) loans remained elevated at the 2025 Q3 levels, and increased 172% from 2024 Q4. Loans that are 90+ days late (grey line) remained about the same as 2024 Q4, and decreased 3%. Last year, the most concerning statistics were the loans that were 30-89 days late (orange line), which increased to $108.9 million in Q1 in the SAT states. By the end of the year, total loan amounts in this category decreased to $49.6 million, but it seems the decline was the result of debt moving to the non-accrual category by Q4 of 2025. While this loan type decreased from Q1, the amount increased by 35% compared to 2024 Q4. Due to the varying size of states, measuring the percentage of 30-89 days late loans compared to total loan volume is a good way to compare the SAT states and the impacts of these bad loan types. In 2025 Q4, the quarterly average of 30-89 days late loans to total loan volume was 0.3% (which is stable), with the highest being  Kentucky (0.8%), North Carolina (0.5%), and Louisiana (0.4%). When comparing the percentage of total late debt (non-accrual, 30-89 days late, and 90+ days late) relative to total loan volume, the quarterly average was 0.9%. Alabama (3.1%), Georgia (2.4%), Louisiana (1.8%), Mississippi (1.2%), and Arkansas (1.1%) were the only states above the SAT average. North Carolina and South Carolina were the only two states below 1%. 



Taking a broad view, the 2025 fourth‑quarter bank reports give a useful snapshot of farm debt conditions following a difficult profitability year for many row‑crop operations and a strong revenue year for livestock producers across the SAT states. The reports show that financial condition remains stable in several states, but there are also early warning signs in others that warrant close attention. Recent improvements in row‑crop prices offer some potential relief for operating debt in 2026, though margins remain tight. Government payments will also be an important factor this year; ARC and PLC payments are expected again for the current crop year, though they will not be received until October 2026, and should help reduce some problem loan balances. In the meantime, producers should closely monitor working capital, manage short‑term debt carefully, and continue the sound production, marketing, and risk‑management practices they already have in place. Overall, while reliance on non‑real estate credit has increased, rising input costs, higher interest rates, and income variability are placing added pressure on farm finances, making proactive financial management especially important in the months ahead.



Figure&nbsp;1. Non-Real Estate Farm Debt from 2023 Q1- 2025 Q4 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1458" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-scaled.png" alt="" class="wp-image-43959" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-scaled.png 2560w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-1024x583.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-768x437.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-1536x875.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/05/6.21.1-2048x1166.png 2048w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /><figcaption class="wp-element-caption">Source: Federal Financial Institutions Examination Council</figcaption></figure>



References



Martinez, Charley, and Haylee Ferguson. “<a href="https://southernagtoday.org/2022/07/current-non-real-estate-farm-debt/">Current Non-Real Estate Farm Debt</a>“.&nbsp;Southern Ag Today&nbsp;2(30.3). July 20, 2022.&nbsp;<a href="http://current-non-real-estate-farm-debt/">Permalink</a>



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Martinez, Charley, Mason Collins, and Eli Mundy. &#8220;<a href="https://southernagtoday.org/2026/05/12/check-in-on-current-non-real-estate-farm-debt/">Check in on Current Non-Real Estate Farm Debt</a>.&#8221; Southern Ag Today 6(21.1). May 18, 2026. <a href="https://southernagtoday.org/2026/05/12/check-in-on-current-non-real-estate-farm-debt/">Permalink</a>

Check in on Current Non-Real Estate Farm Debt

Authors: An-Ting Liao (Graduate Research Assistant, TAMU) &amp; Chrystol Thomas (Assistant Professor and Extension Specialist, AgriLife Extension)



Agriculture is a critical pillar of economic activity in rural communities, driving employment, income stability, and local economic development (Unjia et al., 2024). Recent advancements in artificial intelligence (AI), machine learning, and digital twins present new opportunities for businesses, enabling improvements in performance and competitiveness. As agricultural systems continue to evolve, rural communities cannot be left behind. Adopting digital technologies is essential for sustaining agribusiness, including farming, food processing, and distribution, and for supporting future community development.



AI and digital technologies offer substantial opportunities to improve agribusiness operations (Cavazza et al., 2023). AI systems can enhance business processes by optimizing transactions,&nbsp;refining pricing strategies, and improving supply chain coordination through real time data analysis. For example, digital twins enable the creation of virtual farm models that allow producers to simulate different scenarios and evaluate potential outcomes before making operational decisions(Verdouw et al., 2021). Machine learning applications can also be used to predict crop yields, analyze weather patterns, and forecast market demand fluctuations, enabling more informed and timely decision making. Generative AI tools such as Claude, ChatGPT, and Gemini, and similar tools can support agribusiness operations by enhancing decision-making, facilitating market analysis, and improving access to information. Empirical evidence suggests that agribusinesses adopting these technologies can achieve higher operational efficiency, reduce input costs, and improve long term financial performance&nbsp;(Yuan et al., 2025). In addition, by integrating AI tools into production and management systems, rural agribusinesses also enhance their adaptability and resilience in a competitive and dynamic market environment.



However, rural agribusinesses are likely to face challenges in adopting advanced technologies. Limited financial capital remains a primary barrier, as small and medium sized enterprises typically lack the resources required for initial investments in digital infrastructure, software, and system maintenance (Gálvez Nogales and Casari, 2023). In addition, technical capacity constraints and limited digital infrastructure restrict rural agribusiness’s ability to implement and manage AI tools effectively, as many rural counties still experience unreliable connectivity.&nbsp;Demographic factors also contribute to these challenges, as rural areas often face shortages of younger, technologically skilled workers due to outmigration. Furthermore, there is limited awareness and training related to AI applications among agribusiness operators, reducing their ability to integrate these tools into operations (Udoh et al., 2025).&nbsp;



Addressing barriers to technology adoption requires accessible resources, targeted strategies, and institutional collaboration. The growing availability of free or low-cost digital tools and AI platforms provides rural agribusinesses with entry for integrating technology into their operations. Strengthening digital literacy and workforce training is essential for effective use, while embedding digital technologies into daily practices supports gradual and sustainable adoption. Collaboration with academic institutions, including cooperative extension services and land-grant universities, also play a key role in building local capacity through technical assistance, training, and research-based support (Jaiswal et al., 2025). These efforts further strengthen efficiency, profitability, and resilience in agribusiness systems, reinforcing the long-term competitiveness and sustainability of rural communities.



References



Cavazza, A., Dal Mas, F., Paoloni, P., &amp; Manzo, M. 2023. Artificial intelligence and new business models in agriculture: A structured literature review and future research agenda. British Food Journal, 125(13), 436–461.&nbsp;<a href="https://doi.org/10.1108/BFJ-02-2023-0132">https://doi.org/10.1108/BFJ-02-2023-0132</a>.



Gálvez Nogales, E., &amp; Casari, G. 2023. Promoting the digitalization of small and medium-sized agrifood enterprises in Asia and the Pacific. Food and Agriculture Organization of the United Nations.&nbsp;<a href="https://doi.org/10.4060/cc8826en">https://doi.org/10.4060/cc8826en</a>.



Jaiswal, N., Phukan, P., Ramsem, P. A., Vyas, D., Tamgale, G. S., Verma, A. K., Singh, G., Kumari, R., Ribadiya, N. K., &amp; Singh, J. (2025). Bridging the gap: The role of agricultural extension in knowledge transfer and rural development. Plant Archives.



Unjia, Y., Padaliya, S., Agrawat, Y., &amp; Padaliya, M. 2024. Rural development and agribusiness integration. In Agribusiness management. Routledge.



Udoh, F. E., Udom, U. G., &amp; Udo, U. A. 2025. Awareness, perception and adoption of artificial intelligence (AI) technologies among agricultural entrepreneurs in Nigeria. International Journal of Contemporary Africa Research Network, 3(2).&nbsp;<a href="https://doi.org/10.5281/zenodo">https://doi.org/10.5281/zenodo</a>.



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Liao, An-Ting, and Chrystol Thomas. &#8220;<a href="https://southernagtoday.org/2026/05/12/incorporating-ai-and-digital-technologies-opportunities-and-challenges-for-rural-counties/">Incorporating AI and Digital Technologies: Opportunities and Challenges for Rural Counties</a>.&#8221; Southern Ag Today 6(20.5). May 15, 2026. <a href="https://southernagtoday.org/2026/05/12/incorporating-ai-and-digital-technologies-opportunities-and-challenges-for-rural-counties/">Permalink</a>

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