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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API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
In the meantime, Senate Majority Leader John Thune is asking that farmers be allowed to use marketing assistance loans to help stay afloat.
