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
Rural businesses report softer sales, tougher hiring, and restrained investment — a backdrop that can pinch farm support capacity even if posted prices cool.
November 12, 2025 12:22 PM
·
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
November 12, 2025 12:16 PM
·
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
November 11, 2025 03:50 PM
·
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
November 11, 2025 01:30 PM
·
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
November 11, 2025 01:26 PM
·
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.
November 11, 2025 11:21 AM
·
Pasture, Rangeland and Forage (PRF) interval selection—not just participation—drives protection levels as rainfall patterns become less predictable across the South.
November 11, 2025 11:06 AM
·
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
November 11, 2025 10:46 AM
·
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
November 10, 2025 03:05 PM
·
