News

Ag lending up in early 2025

New data confirms more farmers are seeking financial help in the down agriculture economy.

Rose Oswald Poels is President and CEO of the Wisconsin Bankers Association.  She says a recent study by the Federal Reserve Banks in Chicago and Minneapolis shows more farmers are struggling with their finances now. “Farm credit conditions have really been challenging for ag borrowers and the ag lenders have reported that demand has definitely gone up for operating loans in the first quarter.”

She says the Federal Reserve survey is consistent with the numbers Wisconsin bankers are seeing.

Oswald-Poels says more farmers are taking out new operating loans to cover operating costs since they have less in savings. “It’s up a fair amount. I think that can be attributed, maybe even in large part to the fact that last year was a difficult year for certain segments of the farm economy and so there is some carry-over debt that’s happened or less cash.” The Federal Reserve study shows farm lending increased 8.78% from 4^th quarter of 2024 to first quarter of 2025, and 8.95% more than the first quarter a year ago.

Oswald Poels says the ag economy is cyclical and this is something farmers and bankers have all seen before, *but one sector of the ag economy is struggling more.  “At the moment, I think it really is more crop farmers than it is any other sector that’s the most challenged, without question.”

She says farmers have been more reluctant to make investments in machinery and expansion, but there are some dairy and beef expansions underway.

Oswald Poels says farmers should continue to communicate with their lenders, who can often help with financial planning, loan options, and restructuring of debt to help keep the farm viable.

AUDIO: Rose Oswald Poels from the Wisconsin Bankers Association discusses the increase in farm loans with Brownfield’s Larry Lee