Demand for farm loans is way up...but so are bankruptcies.

Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.

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
Greater transparency into USDA-backed lending can help rural lenders and producers better assess credit availability and investment trends.
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
Roger McEowen, with the Washburn School of Law, offers an in-depth look at two of the top legal issues of 202. Today, he walks through last year’s Waters of the United States (WOTUS) ruling and “lawfare.”
RFD NEWS correspondent Frank McCaffrey recently spoke with Dr. Mike Vickers, a South Texas rancher, who says illegal border crossings have dramatically declined in the last year.

LATEST STORIES BY THIS AUTHOR:

Key signs of the U.S. beef herd’s recovery are improved pasture conditions, lower feed costs, and increased regulatory alignment and support for producers to implement targeted grazing practices.
Dr. Mark Svoboda with the National Drought Mitigation Center discusses a new global drought report and resources to help operations increase drought resilience.
Treat financial stress as a health risk—know the warning signs, normalize conversations, and connect farm families to local and national support early.
Congress has just over a month of working days left for the year. Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.
Mexico’s tougher, two-step treatment and added checkpoints are catching cases before they can spread—good news for producers near the border.
Despite tariffs having a less significant impact on exports, corn producers struggle with tariff-related increases on inputs, which complicates their bottom line.