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
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.
January 23, 2026 01:36 PM
·
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
January 23, 2026 01:12 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
·
The Farm Bureau is making an urgent call to Congress for more farm support. Colton Lacina with Farmers National Company joined us to discuss farmland values and how market dynamics for the year ahead reflect stabilization rather than collapse.
January 21, 2026 12:30 PM
·
Congressional leaders signal momentum toward expanded, targeted farm aid to help producers manage losses and cash-flow stress in 2026.
January 20, 2026 11:48 AM
·
