KANSAS CITY, Mo. (RFD-TV) — Agricultural credit conditions across the Tenth District weakened again in the third quarter as crop producers faced another season of tight margins, elevated input costs, and shrinking working capital.
According to the Federal Reserve’s regional survey, lenders in crop-heavy states such as Kansas, Nebraska, and Missouri reported lower farm income and softer repayment rates, with as many as 40% noting declines. Mountain States lenders also reported weaker finances tied to low wheat and dairy prices. By contrast, cattle-dependent regions like Oklahoma saw stronger incomes, improved repayment expectations, and steadier loan quality as record cattle prices continued to bolster revenues.
Despite the financial strain, loan demand climbed, driven by producers seeking operating credit to bridge weak margins. More lenders indicated borrowers plan to sell equipment or other assets to improve liquidity, and problem loan rates nudged higher in crop-focused areas.
Fund availability held mostly stable, while interest rates eased slightly from the previous quarter but remained well above long-term norms. Farmland markets remained surprisingly steady: cropland values held firm, ranchland rose about three percent, and cash rents followed similar patterns.
Looking ahead, lenders expect continued stress for crop operations but relative stability for livestock. Many anticipate lower repayment capacity through winter, stronger non-real-estate loan demand, and a moderate rise in forced asset sales if commodity prices do not improve.
Farm-Level Takeaway: Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Tony St. James, RFD-TV Markets Specialist
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
November 25, 2025 12:40 PM
·
Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
November 25, 2025 12:05 PM
·
One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
November 24, 2025 02:42 PM
·
Farmers with unpaid Hansen-Mueller grain should verify delivery records immediately and file indemnity claims quickly, as coverage rules differ sharply by state.
November 24, 2025 02:32 PM
·
According to November’s Cattle on Feed Report, Nebraska now leads the nation in cattle feeding as tighter supplies continue to reshape regional market power and long-term price dynamics.
November 24, 2025 11:47 AM
·
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
November 21, 2025 07:02 PM
·
Screwworm.gov has targeted resources for a wide range of stakeholders, including livestock producers, veterinarians, animal health officials, wildlife professionals, healthcare providers, pet owners, researchers, drug manufacturers, and the general public.
November 21, 2025 02:09 PM
·
Mike Steenhoek of the Soy Transportation Coalition discusses industry reactions to the proposed Union Pacific–Norfolk Southern merger, the Surface Transportation Board’s review process, and current conditions on the Mississippi River.
November 21, 2025 01:59 PM
·
Sen. Roger Marshall discusses the Senate’s unanimous passage of the Whole Milk for Healthy Kids Act and what expanded milk options could mean for students and dairy farmers. Industry groups say it is a win for student nutrition and dairy producers.
November 21, 2025 01:19 PM
·
