CHICAGO, Il. (RFD-TV) — Farm finances tightened across the Chicago Federal Reserve’s Seventh District in the third quarter, with ag bankers reporting higher loan delinquencies even as farmland values posted modest year-over-year gains. The Chicago Fed’s latest AgLetter, led by policy advisor David Oppedahl, found credit conditions weakening further while crop farms remained pressed by narrow margins and rising costs.
Corn and soybean prices improved slightly late in the quarter, offering limited relief to crop producers who continue to face competition from Brazil and elevated input expenses. Bankers noted that weaker cash earnings are expected this fall and winter for most crop farms and dairy operations.
Operationally, more renewals and extensions signal increasing stress, and nearly half of the surveyed bankers anticipate a rise in forced liquidations. Some lenders are advising producers to tighten expenses or sell assets to rebuild working capital.
Regionally, farmland values rose about 3 percent from a year ago and held steady from the previous quarter, supported by strong demand and some interest from outside investors.
Looking ahead, livestock operations — particularly cattle and hog producers — may see stronger earnings as beef demand keeps prices elevated.
Farm-Level Takeaway: Credit stress is building for row-crop farms despite steady land values and slight price improvements.
Tony St. James, RFD-TV Markets Specialist
Nick Andersen, Nationwide’s VP of Agribusiness Claims, shares tips for managing weather-related risks in agriculture using their new Hail and Wind Alert Program.
October 13, 2025 01:57 PM
·
The American Farm Bureau Federation (AFBF) is urging Congress and the Trump Administration to act quickly on behalf of American agriculture.
October 13, 2025 11:42 AM
·
Escalating U.S.–China tensions threaten soybean demand as farm finances are stretched further.
October 13, 2025 10:40 AM
·
Rex Gray, Corn Product Manager for Golden Harvest, discusses how the company works side-by-side with farmers to develop strong-performing hybrids built to fit their acres.
October 10, 2025 01:23 PM
Expect a steady corn grind and selective basis strength where exports and local blending stay active.
October 09, 2025 05:10 PM
·
Farm CPA Paul Neiffer shares his perspective on the uncertain outlook of federal farm relief and the Farm Bill, which may not materialize until the government shutdown ends.
October 09, 2025 01:29 PM
·
AFBF Associate Economist Samantha Ayoub joins us to dive into H-2A visa program changes and what can be done to ease the pressure on producers.
October 09, 2025 12:11 PM
·
October 09, 2025 11:36 AM
·
Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
October 08, 2025 03:03 PM
·
