The Farm Credit System remains financially strong despite growing stress in parts of the farm economy, according to information presented to the Farm Credit Administration board. As of March 31, the System reported stable earnings and increased capital levels. Total capital reached $86.4 billion, up 7.3 percent from last year, leaving the nation's largest agricultural lender well-positioned to meet the borrowing needs of farmers and ranchers. Loan quality remained sound overall, although credit risks increased. Nonperforming assets rose to 1.09 percent of loans and other property owned, compared to 0.96 percent a year ago, reflecting financial pressure in some agricultural sectors. The report also noted growing economic challenges, including higher energy costs and inflation tied to conflict in the Middle East. Despite expectations for lower net farm income in 2026, farm finances continue to benefit from federal support programs. The System remains "well-positioned to meet the funding and liquidity needs of farmers and ranchers."
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