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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EXCLUSIVE: Texas Lawmakers Weigh USMCA’s Relevance and What Renegotiation Could Mean for Agriculture
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Rising rural business confidence supports local ag economies, but taxes and labor shortages remain key constraints.
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
