After years of historically low delinquency rates, credit quality at farm banks weakened modestly in 2025. The number of farm loans that were not repaid on schedule still remains low by historical standards. According to the American Bankers Association 2025 Farm Bank Performance Report, 98 percent of farm banks were profitable last year, with 73 percent reporting higher earnings than the previous year. The farm banks in the Plains region, including the Dakotas, increased their farm loans by 8.3 percent. For the Cornbelt region, including Minnesota, the number of farm loans rose by nearly six percent. In both regions, most farm banks strengthened their balance sheet slightly from the previous year.
