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Monday, December 15, 2025

Quarterly Economic Condition Report for U.S. Agriculture

The Farm Credit Administration received its quarterly report on economic conditions affecting agriculture and an update on the overall performance of the Farm Credit System. Despite a turbulent year with tariffs and trade, the U.S. economy is expected to end 2025 on a relatively stable footing. In agriculture, producers face a mixed outlook. Bumper crops have created marketing challenges amid a fluid trade environment and a shortage of storage. Grain and soybean producers continue to experience margin compression from low commodity prices and rising fertilizer costs. Meanwhile, strong prices and low cost of feed are boosting livestock profitability. Although liquidity and solvency positions remain relatively strong in the farm sector, continued low or negative profitability for grain producers could erode financial resilience heading into the 2026 loan renewal season. The System reported solid financial results through the first nine months of 2025. Loan growth continued at a modest pace.