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.
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With the Aug. 31 deadline approaching, Farm CPA Paul Neiffer encouraged farmers not to wait until the final days to address any questions or discrepancies with their records.
U.S. cattle on feed totaled 11.1 million head on August 1, up 2 percent from 2025, while July placements fell 11 percent to a record low.
Farmers are balancing weaker yields with higher fuel and fertilizer costs.
Farmers should monitor the Union Pacific-Norfolk Southern merger and conditions along the Mississippi River and Panama Canal as they plan for harvest.
