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
According to the new report, seven out of ten rural bankers support President Trump’s recent trade steps with China, expressing cautious optimism about future export potential.
November 03, 2025 01:36 PM
·
An import lag for ground beef will likely look different than last year’s egg shortage. The difference comes down to biosecurity and market flexibility.
November 03, 2025 12:07 PM
·
Persistently low Mississippi River levels are turning logistics challenges into pricing risks — tightening margins for grain producers and exporters across the heartland.
November 03, 2025 10:20 AM
·
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
November 02, 2025 05:06 AM
·
America’s love for burgers depends on open markets. Without lean beef imports, prices would skyrocket, crushing demand and destabilizing the beef industry.
November 01, 2025 09:01 AM
·
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
November 01, 2025 06:54 AM
·
October 31, 2025 01:30 PM
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
October 31, 2025 12:50 PM
·
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
October 31, 2025 12:39 PM
·
