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
Farm Bureau economist Dr. Faith Parum explains how geopolitical dynamics in the Middle East could further tighten fertilizer movement, increase fuel costs, and complicate planting decisions for U.S. farmers this spring.
March 12, 2026 03:57 PM
·
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
March 12, 2026 03:31 PM
·
Missouri Farm Bureau President Garrett Hawkins discusses the potential impact of data center growth on farmland, the Landowner Fairness Act, and key priorities for Missouri farmers heading into planting season.
March 12, 2026 03:04 PM
·
OHFB President Bill Patterson shares an update from Washington on the group’s policy priorities and the issues shaping agriculture ahead of the 2026 planting season.
March 11, 2026 03:34 PM
·
Ben Kurtzman with American Farmland Trust discusses the growing pressure on farmland and ranchland and the steps being taken to help conserve farms and ranches across the country ,as unrest in the Middle East adds more obstacles for producers.
March 11, 2026 03:18 PM
·
NRECA CEO Jim Matheson warns that rising electricity demand from AI and data centers could strain the grid and affect rural electric cooperatives if U.S. power infrastructure cannot keep up.
March 11, 2026 11:59 AM
·
