The Farm Credit System remains financially sound, but rising credit risk is becoming a concern as farmers continue facing higher expenses. The Farm Credit Administration board received an update on agricultural conditions and the System’s performance through June 30. FCA says the agricultural economy remains pressured by higher costs, although weather and geopolitical supply shocks have created marketing opportunities that could help crop producers’ liquidity this fall. Livestock producer profits have been more varied, while farmland values continue to rise despite soft returns in recent years. During the first six months of 2026, the Farm Credit System reported modest loan growth, increased earnings, and sound capital levels. Overall loan portfolio quality remained sound, but nonperforming assets increased to 1.09 percent of loans outstanding and other property owned as of June 30, up from 1.02 percent a year earlier. FCA says the increase shows credit risks continue to trend higher.
Welcome
