KANSAS CITY, Mo. (RFD-TV) — Farm credit conditions tightened again in the third quarter as weaker crop margins eroded working capital across much of the Midwest and Plains, according to the Kansas City Federal Reserve’s Ag Credit Survey. The KC Fed reported continued declines in farm income and loan repayment rates, alongside rising renewal activity that signals growing financial strain for many operations.
Non-real estate loan demand increased steadily, driven by higher operating needs and tighter liquidity among crop farms. The KC, Chicago, and Minneapolis districts reported the strongest upticks in financing needs, while fund availability slipped modestly in several regions as lenders became more cautious.
Capital spending fell at the fastest rate since early 2020, underscoring tighter budgets, though household spending stabilized after years of growth. These shifts reflect limited profit opportunities for crop producers, despite some recent price improvements.
Regionally, farmland real estate values provided a key stabilizing force. Non-irrigated cropland values held firm or increased in more than half of the surveyed states, with Oklahoma and Texas showing the strongest gains.
Looking ahead, the KC Fed notes that financial stress remains contained overall, supported by firm land values and earlier relief funding — but highly leveraged crop farms face the greatest pressure as credit conditions continue to tighten.
Farm-Level Takeaway: Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Tony St. James, RFD-TV Markets Specialist
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
·
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
January 20, 2026 02:04 PM
·
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.
January 20, 2026 12:25 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
·
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
January 19, 2026 05:00 PM
·
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
January 19, 2026 03:00 PM
·
In a landmark ruling delivered in late 2025, the U.S. Supreme Court significantly narrowed the scope of the National Environmental Policy Act.
January 19, 2026 11:25 AM
·
Rising rural business confidence supports local ag economies, but taxes and labor shortages remain key constraints.
January 17, 2026 02:00 PM
·
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
January 16, 2026 01:44 PM
·
