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
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
November 11, 2025 10:46 AM
·
The allure of rural property — with its promise of space, freedom, and self-sufficiency — is undeniable, but local zoning regulations govern the reality.
November 10, 2025 01:55 PM
·
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
November 10, 2025 01:38 PM
·
Verified U.S. data show real leather’s carbon footprint is lower than advertised — an edge for the American cattle industry in both marketing and byproduct value.
November 07, 2025 11:32 AM
·
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
November 06, 2025 02:45 PM
·
David Klein with the American Society of Farm Managers and Rural Appraisers (ASFMRA) shares an end-of-harvest update and a peek at the farmland market in Central Illinois.
November 05, 2025 12:58 PM
·
