Minneapolis Fed: Farm Incomes Slide in 4th Quarter

Farm incomes fell across the Federal Reserve’s Ninth District in the 4th quarter, according to the latest Ag Credit Survey from the Minneapolis Fed. The survey shows continued financial pressure in farm country, with lenders reporting weaker earnings and tighter cash flow to close out the year. Capital spending pulled back sharply. 56 percent of lenders reported lower spending on equipment and buildings, compared to just 11 percent who saw an increase. At the same time, loan demand increased as repayment rates declined and renewals rose. Interest rates on agricultural loans edged lower during the quarter, but that relief did little to shift overall sentiment. Land values were mostly steady and cash rents were mixed. Looking ahead to the first quarter of 2026, lenders remain pessimistic and expect farm incomes to decline further.