CHICAGO, Ill. (RFD-TV) — Farmland values across the Seventh Federal Reserve District rose modestly in the third quarter, continuing the slow, steady trend that has carried through much of 2025. According to agricultural bankers surveyed on October 1, land values were up 3% from a year earlier, mirroring the previous quarter’s gains.
Illinois, Indiana, and Wisconsin posted annual increases, while Iowa saw a slight year-over-year decline. Quarter-to-quarter, the District held flat, reflecting softer demand and more cautious purchasing behavior heading into winter.
Credit conditions weakened further, revealing the financial pressure many farm operations are facing. Repayment rates on non-real-estate loans fell for the eighth consecutive quarter, renewals and extensions increased again, and loan demand remained elevated as producers relied more heavily on operating credit. Funds available for lending declined for the tenth straight quarter, and collateral requirements rose. Interest rates eased slightly but remain above most producers’ preferred levels.
Looking ahead, most bankers expect land values to stay flat or decline slightly in the fourth quarter. Survey responses point toward weaker farmer demand for land, stronger interest from non-farm investors, lower expected crop and dairy earnings, and rising asset liquidations as some operations seek working capital.
Farm-Level Takeaway: Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Tony Saint James, RFD-TV Markets Specialist
This is the time of year when farmers start preparing for their 2026 operating lines of credit. Lenders will be looking closely at financial details, including projected cash flow for the year ahead, explains Austin Peiffer, Associate Attorney with Ag and Business Legal Strategies.
“What are you going to plant, how much it’s going to cost to put in, how much do you expect to make taking it out?” Peiffer said. “They want to see that you have a good margin in that you’re not just barely scraping by, but you’ve got enough profit so that there’s some protection for the bank if things turn south.”
Peiffer says your banker will also need to see your up-to-date balance sheet.
“They want to see that you’ve got more than enough money to meet your short-term obligations with short-term assets,” he said. “In general, they’ll want to see that you’re solvent, too. They’ve got ratios they’re looking for that their reg[ulation]s and policies provide for, that say, ‘Okay, when these numbers are in this range, the loan is probably going to be good.’”
In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
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Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
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The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
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The distinction between co-tenancy and joint tenancy and why it matters — is the topic of today’s Firm to Farm blog post by RFD-TV Agri-Legal Expert Roger McEowen.
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What are the relative advantages and disadvantages of the split-interest transaction? And what are the rules when property that was acquired in a split-interest transaction is sold? That is the topic of today’s blog post by RFD-TV Agri-Legal Expert Roger McEowen.
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A split-interest transaction involves one party acquiring a temporary interest in the asset (such as a term certain or life estate), with the other party acquiring a remainder interest. That is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger A. McEowen.
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As I try to catch up on my writing after being on the road for a lengthy time, I have several recurring themes in my legal work. Another potpourri of random ag law and tax issues — that is the topic of today’s Firm to Farm blog post by RFD-TV Agrilegal Expert Roger McEowen.
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Gov. Sarah Huckabee Sanders spoke with RFD-TV’s own Susan Alexander this Monday morning on the Market Day Report to explain Arkansas’s recently passed giving lawmakers greater authority to sanction foreign ag-land ownership within the state.
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