KANSAS CITY, MO (RFD NEWS) — Farmland values across the Midwest and Plains held steady in 2025 even as farm income, credit conditions, and repayment trends softened through the year, according to Federal Reserve agricultural credit surveys.
Francisco Scott and Ty Kreitman report cropland values were unchanged or slightly higher across participating Federal Reserve Districts, supported by resilient land demand and ad hoc government assistance despite tightening farm finances. Financial stress remained limited overall through late 2025.
Farm-Level Takeaway: Strong land values continue masking tighter farm finances.
Tony St. James, RFD NEWS Markets Specialist
Farm income weakened gradually in the fourth quarter, though declines slowed in some regions. Credit conditions also softened but at a slower pace, with fewer lenders reporting year-over-year deterioration in repayment rates across several Districts. Farm loan interest rates declined modestly from 2023 peaks to about 7.5 percent on average — still above long-term norms.
Regional farmland trends varied. Nonirrigated cropland values rose by more than 5 percent in northern Indiana, Kansas, and Texas but fell by about 4 percent in South Dakota, highlighting localized supply, income, and weather dynamics.
Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
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Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.
January 29, 2026 08:00 AM
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Justin Wheeler with the American Society of Farm Managers & Rural Appraisers joined us with insight into current farmland values and what to watch in the year ahead.
January 28, 2026 02:42 PM
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Greater transparency into USDA-backed lending can help rural lenders and producers better assess credit availability and investment trends.
January 28, 2026 07:00 AM
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Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
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Corn and soybean exports continue to anchor weekly inspection totals, with China maintaining a visible role, while wheat and sorghum remain more dependent on regional and seasonal demand shifts.
January 27, 2026 03:08 PM
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