By Jamie Martin
Farm banks continued to serve as a strong financial backbone for U.S. agriculture in 2025, based on findings from the American Bankers Association’s Farm Bank Performance Report. Banks supplied more than $212 billion in farm loans, making them a major source of agricultural credit nationwide.
Farm banks held $122 billion in these loans and played a key role in financing small and micro farms. These operations rely on bank funding for planting, equipment, land purchases, and daily farm management.
"Farm banks play an outsized role in supporting farmers, ranchers and rural communities," said Ed Elfmann, senior vice president, agricultural and rural banking policy. "This report shows they continued to extend credit responsibly in 2025 while maintaining solid capital levels and strong ties to the communities they serve."
Support for small farms remained strong. Banks maintained more than one million small farm loans valued at $71 billion. Micro farm lending also remained significant, with hundreds of thousands of loans supporting smaller agricultural businesses.
Financial performance remained stable. Capital levels increased steadily, and most farm banks reported profits in 2025. This financial strength allowed banks to continue lending while managing changing market conditions.
Loan performance showed slight normalization after years of very low delinquency rates. However, unhealthy loan levels remained low, showing careful lending practices across the sector.
Farm banks also contributed to rural employment growth by adding more than 2,000 jobs in 2025. Total rural employment exceeded 76,000 workers. Many of these banks have served their communities for decades, reflecting strong local relationships.
Regional loan growth was reported across the Northeast, South, Midwest, and Western states. The findings underline the critical role farm banks play in supporting farmers, rural communities, and the overall agricultural economy.
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Categories: National