CHICAGO, IL (RFD NEWS) — Midwest farm credit conditions weakened in the first quarter as producers carried more operating debt and lenders reported slower repayment rates.
The Chicago Federal Reserve says non-real-estate farm loan demand rose for the tenth consecutive quarter across the Seventh District.
The loan demand index reached 141, with half of responding lenders reporting higher demand than a year earlier. At the same time, repayment rates remained weak, with 38 percent of lenders reporting lower repayment rates and only 1 percent reporting improvement.
Loan renewals and extensions also increased. The index reached 136, its highest level since the second quarter of 2020, and lenders reported an average of 17 percent of farm borrowers carried more debt into 2026.
Farmland values were still 3 percent higher than a year earlier, but dipped 1 percent from the previous quarter. Cash rents fell 3 percent for 2026, their second straight annual decline.
The outlook points to increased demand for operating, feeder cattle, and FSA-guaranteed loans this spring.
Farm-Level Takeaway: Higher loan demand, weaker repayment rates, and more carryover debt show working capital remains under pressure.
Tony St. James, RFD News Markets Specialist
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
January 23, 2026 02:00 PM
·
Americans for Prosperity Arkansas Director Ryan Norris talks energy infrastructure, regulatory reform, and the role of critical minerals in supporting rural America.
January 23, 2026 01:54 PM
·
Rural population growth and stabilizing economic indicators point to post-pandemic recovery, but uneven income, shifting industries, and regional divides remain key challenges for rural communities.
January 23, 2026 08:00 AM
·
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
January 23, 2026 07:00 AM
·
Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
January 22, 2026 06:00 PM
·
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
January 19, 2026 05:00 PM
·
