Bankers responding to the Eleventh District’s Q4 2025 Agricultural Survey reported stable regional conditions, though low commodity prices and high input costs continue to pressure farm profitability.

• Demand for non-real-estate farm loans declined further in Q4 to an index of -19.8 from -13.8 in Q3, with 25.0% of bankers reporting lower demand compared to a year earlier.

• The rate of loan repayment plummeted to -14.3 from -1.6 in Q3, indicating a significant weakening in repayment capacity after it had nearly stabilized in the previous quarter.

• Loan renewals or extensions rose to an index of 10.9 from 8.1 in Q3, reflecting increased financial stress as 12.7% of respondents reported higher volumes of restructured debt.

• The volume of farm real estate and farm machinery loans saw notable YoY declines, with indexes falling to -14.3 and -25.4 respectively, while operating and feeder cattle loans were the only categories to show growth.

• The index for anticipated farmland values turned positive at 5.2 from -2.8 in Q3, suggesting that respondents expect values to rise, partly due to demand for non-agricultural purposes.

• Credit standards tightened at an accelerated pace, with the index rising to 25.9 from 17.5 in Q3, as 27.6% of bankers reported more stringent lending requirements.

Bankers responding to the Dallas Fed’s Q3 2025 Ag Survey reported improved weather conditions that boosted yields, but low commodity prices continued to weigh on farm incomes and debt repayment capacity.

• Demand for non-real-estate farm loans declined further, with the index falling to -13.8 (Q2: -3.6); 22.1% of bankers reported lower loan demand compared with last year.

• Availability of funds remained positive at 8.7 (Q2: 9.7), with 12.0% reporting greater availability, suggesting steady access to credit.

• Loan repayment rates edged down slightly, with the index at -1.6 (Q2: -13.6), and 9.7% reporting weaker repayment, indicating stabilization after sharper prior declines.

• Loan renewals/extensions rose, though the index slipped to 8.1 (Q2: 13.6), with 9.7% reporting increases, reflecting ongoing carryover debt pressures.

• Bankers noted that operating loans were stable, while volumes declined across most other categories, underscoring softer financing demand outside immediate operating needs.

• Land values rose YoY across dryland, ranchland, and irrigated farmland, though irrigated values fell QoQ; cash rents showed mixed movements by land type.

• Credit standards continued to tighten, while interest rates declined across all loan types, easing borrowing costs despite financial stress.

Bankers responding to the Dallas Fed’s Q2 2025 Ag Survey reported mildly improved conditions across the Eleventh District as recent rains offered partial relief, though many farmers continue to struggle financially due to weak commodity prices and carryover debt.

• Demand for ag loans declined QoQ, while fund availability rose for the first time since 2022.
• Loan renewals/extensions increased at a faster pace, and repayment rates continued to fall, though the pace of decline slowed.
• Land values for irrigated, dryland, and ranchland rose slightly QoQ; YoY, only dryland values were higher.
• Real cash rents increased across all categories in Q2.
• Interest rates declined for all loan types, with both fixed and variable real estate loan rates falling below 8% for the first time since 2022.

Bankers responding to the first-quarter survey reported sustained dry conditions across most regions of the Eleventh District. The lack of rain during the winter season will hamper wheat and corn harvests.

• The recent government financial assistance and disaster payments will improve farmers’ cash flow, but even with this support, many farmers will still be left in the red. Cattle prices remained high and are predicted to stay elevated.
• Demand for agricultural loans increased slightly in the first quarter. Availability of funds declined in the first quarter after stabilizing at the end of 2024. Loan renewal or extensions continued to increase in first quarter 2025 although at a slower pace.
• The rate of loan repayment continued to decline, but the pace of declines remained stable after increasing throughout 2024.