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.