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
Reducing mental stress and focusing on controllable actions can improve decision-making in high-pressure environments, according to Hollywood actor and former Calif Gov. Arnold Schwarzenegger.
January 09, 2026 03:59 PM
·
The “Wild, Wild West” of Taxes
January 09, 2026 09:00 AM
·
Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.
January 08, 2026 08:00 AM
·
North Dakota CO₂ Storage Law Struck Down
January 07, 2026 03:03 PM
·
China continues to buy U.S. soybeans toward its 12 MMT commitment, as analysts cite data gaps, delivery timing questions, and muted market reaction.
January 07, 2026 11:50 AM
·
Higher ethanol blend rates translate directly into stronger, more durable corn demand if regulatory momentum holds.
January 07, 2026 10:06 AM
·
As the new year begins, both farmers and rural families are taking stock of their finances and planning ahead for 2026.
January 06, 2026 03:23 PM
·
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
January 06, 2026 02:46 PM
·
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
January 06, 2026 01:12 PM
·
