CHICAGO, Ill. (RFD NEWS) — Midwest farmland values improved in 2025, but rising credit stress signals tougher financial conditions ahead for producers.
The Chicago Federal Reserve reported that Seventh District farmland values rose six percent last year, reversing a small decline in 2024. Good-quality land increased by two percent in the fourth quarter. Illinois, Indiana, and Iowa posted single-digit annual gains, while Wisconsin also moved higher.
Credit conditions weakened. The share of farm loans with major or severe repayment problems climbed to 5.6 percent in the fourth quarter — the highest since 2020. Demand for operating loans increased for the ninth straight quarter, while funds available for lending declined for the eleventh consecutive quarter. Thirty percent of banks tightened farm credit standards compared to a year ago.
Interest rates edged lower late in the year, but bankers expect lower capital spending in 2026. Non-real estate loan volumes are projected to rise, while real estate lending is expected to soften.
Farm-Level Takeaway: Strong land values contrast with mounting credit pressure.
Tony St. James, RFD NEWS Markets Specialist
Exports depend more on demand than currency shifts.
March 30, 2026 10:59 AM
·
Corn Refiners Association VP Kristy Goodfellow offered insight into the Feeding the Economy Report’s key findings, showing the breadth of agriculture’s economic impact and the challenges ahead.
March 27, 2026 03:32 PM
·
Curing title defects in an agricultural context requires a blend of traditional real estate law and a deep understanding of rural land use history.
March 27, 2026 02:04 PM
·
Oklahoma Cattlemen’s Michael Kelsey joined us to discuss wildfire impacts across the Southern Plains, the importance of community support, and the path forward for affected producers.
March 27, 2026 11:40 AM
·
As ag lawmakers in the Senate await the House vote on the Farm Bill, they are eager to discuss the challenges farmers face before it is their turn to take up the critical legislation.
March 26, 2026 04:29 PM
·
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.
March 26, 2026 02:57 PM
·
