KANSAS CITY, Mo. (RFD NEWS) — U.S. farm income conditions remained uneven through 2025 as strong livestock markets supported revenues while crop producers continued facing lower prices and tightening margins, according to the Federal Reserve Bank of Kansas City’s Fourth Quarter Agricultural Bulletin (PDF Version).
Average agricultural commodity prices finished 2025 about 5 percent below levels at the start of the year despite strong cattle markets. Higher cattle prices alone contributed roughly three percentage points to overall agricultural price support, but declines in corn, milk, broilers, and eggs pulled the broader index lower. Crop revenues declined for a third consecutive year as large production weighed on prices across grains and oilseeds.
The livestock sector provided the primary financial offset. Higher cattle sales and modest gains in hog, turkey, and egg receipts lifted overall farm income nearly 20 percent above 2024 levels. Domestic demand for agricultural products remained solid, although exports softened due largely to weaker soybean shipments.
Credit conditions gradually weakened during the year, but broader financial stress remained limited. Farm debt levels held steady, loan delinquency rates changed little, and farmland values stayed resilient, helping stabilize balance sheets despite weaker profitability for crop producers.
Looking ahead, Federal Reserve analysts indicate that subdued crop profitability could continue to pressure credit conditions if commodity prices fail to recover, even as livestock markets remain comparatively strong.
