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
Herd growth and exports supporting dairy outlook.
March 24, 2026 10:00 AM
·
Ag Secretary Brooke Rollins surveys Nebraska wildfire damage as cattle losses, tight supplies, rising imports, and beef industry investigations impact U.S. markets. Roger McEowen outlines legal and tax considerations for ranchers recovering from wildfire damage.
March 23, 2026 11:18 AM
·
The Midwest event will feature hundreds of horses and offer nationwide bidding access to participants
March 20, 2026 03:11 PM
·
Nebraska Cattle Rancher Joe Van Newkirk shares his firsthand insight on devastating wildfires in the Sandhills, discusses challenges facing ranchers, long-term calf health concerns, and the recovery efforts underway.
March 20, 2026 01:53 PM
·
Nebraska Cattlemen’s Association President Craig Uden shares the latest on Nebraska wildfire conditions, discusses challenges facing producers, and outlines relief efforts underway.
March 20, 2026 01:21 PM
·
Farm CPA Paul Neiffer explains the updates to crop insurance subsidies, additional benefits for new farmers, and eligibility considerations for those entering the program.
March 19, 2026 02:12 PM
·
