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
The American Farm Bureau Federation (AFBF) is urging Congress and the Trump Administration to act quickly on behalf of American agriculture.
October 13, 2025 11:42 AM
·
October 29 – November 1, 2025
October 09, 2025 03:13 PM
We spotlight a student from Illinois who is helping to launch a middle school chapter and teaching younger students about the impact of agriculture in their communities.
October 09, 2025 12:48 PM
·
AFBF Associate Economist Samantha Ayoub joins us to dive into H-2A visa program changes and what can be done to ease the pressure on producers.
October 09, 2025 12:11 PM
·
As the government shutdown pushes the farm economy closer to the brink, Sens. Grassley and Ernst of Iowa are raising their voices for agriculture.
October 09, 2025 11:50 AM
·
U.S. Senator Joni Ernst (R-IA) joined us on Wednesday’s Market Day Report to share why Ames is uniquely positioned to support expanded USDA operations.
October 08, 2025 12:47 PM
·
