The Federal Reserve’s Ninth District in Minneapolis, Minnesota, has enjoyed good weather for crop production, but crop prices haven’t been friendly to farmers’ pocketbooks.
A North Dakota farm lender told the Federal Reserve that, “High operating costs and lower grain prices are the biggest concerns.” Lenders responding to the second quarter Ag Credit Survey said farm incomes decreased across the Ninth District. Lenders also reported that spending on capital equipment fell, and farm household purchases edged lower on balance. Around the district, 91 percent of the agricultural lenders said incomes decreased from April through June compared to the same period a year ago.
With the weaker cash position, demand for loans rose sharply. Loan repayments also dropped, and loan renewal and extension activity increased. Interest rates for agricultural loans decreased slightly but remained high. Cropland values in the Ninth District were mixed, while cash rents dropped compared to last year.
Read more here: https://www.minneapolisfed.org/article/2025/farm-finances-weakened-further-during-the-growing-season
