Farmland Values Hold Despite Weakening Farm Finances

Strong land values continue masking tighter farm finances.

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Photo by Marji Guyler-Alaniz/FarmHER, Inc.

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.

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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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