Economists at the Kansas City Fed say that weaker crop prices over the past year have reduced farm income. That has led to lower loan repayment rates and more renewals and extensions. Last year, farm banks issued more than $115 billion in agricultural loans.
Meanwhile, farm bankruptcies are also on the rise. A University of Arkansas study shows more U.S. farms filed in the first three months of 2025 than in all of 2024.
Extension economist Ryan Loy says the 259 filings signal financial stress, similar to that seen in 2018 and 2019. He points to low commodity prices and higher costs for seed, fertilizer, and diesel.
Related Stories
U.S. farm debt has topped $605 billion, but vendor financing and other nontraditional lending may mean USDA estimates do not capture the full amount owed.
As fall weaning begins, Jake Charleston explains how Livestock Risk Protection can establish a price floor for calves while allowing producers to benefit if markets rise.
Matt Frostic is bringing a farm-level perspective to E15, trade, the Farm Bill, and new corn markets as the new leader of the National Corn Growers Association.
RealAg Radio host Shaun Haney discusses the latest AEM equipment sales figures and the financial pressures affecting machinery purchases in the United States and Canada.
