The value of Central Plains cropland remained relatively stable during the third quarter of 2025, according to the quarterly survey of agricultural bankers conducted by the Federal Reserve Bank of Kansas City.
Ranchland values, however, rose 3% across the district due to strong cattle profits.
The contrast between profit margins for cattle producers and crop producers painted a divergent picture for farmers and ranchers in the states served by the Fed bank. The bank serves Kansas, western Missouri, Nebraska, Oklahoma and the mountain states of Colorado, northern New Mexico and Wyoming.
According to the bank, the value of nonirrigated cropland increased 0,5% versus a year earlier. Irrigated cropland slipped 1.3%. Ranchland values, meanwhile, rose 3%. For perspective, the bank reported nonirrigated cropland slipped 1.5%, irrigated cropland declined 3% and ranchland rose 4.2% on an annual basis in the bank’s second quarter survey.
Federal Reserve Economists Francisco Scott and Ty Kreitman, who conduct the survey, state: “Agricultural credit conditions in most of the region deteriorated gradually during the third quarter of 2025, but strength in the cattle sector improved farm finances in some areas. According to the survey, farm income and credit conditions weakened at a pace similar to recent quarters in portions of the region most dependent on crop revenues. Despite further tightening, financial conditions generally remained stable and lenders in areas more dependent on cattle revenues reported higher incomes and steady loan quality. Providing ongoing support to the sector, cropland values remained firm and ranchland values increased modestly.”
They report farm loan repayment rates in the district declined at a pace similar to the previous quarter. The share of lenders reporting lower repayment rates inched higher in most states, reaching as high as 40% in Kansas and the Mountain States.
Compared to previous years, considerably more lenders reported that between 5% to 10% of farm borrowers plan to sell assets before the end of the year to improve liquidity. The share of lenders reporting borrowers had no plans to sell assets declined significantly from two years ago, from almost 60% to 20%, they note.