Despite continued challenges from global economic uncertainty and lingering supply chain disruptions, farm banks posted solid financial performance, improved asset quality and increased lending to farmers and ranchers, according to the American Bankers Association’s annual Farm Bank Performance Report.
The U.S. banking industry remained the single largest provider of agricultural credit, holding $205 billion in farm loans by the end of 2024 — accounting for nearly 38% of total farm lending nationwide. Of that, farm banks — banks with a ratio of domestic farm loans to total domestic loans that is greater than or equal to the industry average — held $115 billion, with a strong focus on small and microloans critical to rural producers.
The report, released today, is an analysis by ABA’s economic research team based on FDIC and U.S. Department of Agriculture data, and examines the performance of the nation’s 1,398 farm banks.
“Farm banks continue to be a cornerstone of rural America’s financial well-being,” said Ed Elfmann, ABA’s SVP of agricultural and rural banking policy. “In 2024, these institutions demonstrated the strength and resiliency that comes from deep community roots, prudent capital management and a steadfast commitment to America’s farmers and ranchers.”
The report includes overall industry analysis, as well as region-specific data. Among the report’s highlights, farm banks extended $115.1 billion in agricultural loans in 2024, up 6.4% from 2023. Farmland-secured lending rose 4.7% to $65.9 billion; agricultural production loans surged 8.9% to $49.3 billion. Banks reported over 1.1 million small-farm loans worth $72 billion; farm banks held 63.4% of all small-farm loans by value, including $9.1 billion in microloans (loans with origination value less than $100,000).
Loan delinquency rates at farm banks remain low, with non-current agricultural loans dropping to 0.32%. Equity capital grew 8.1% to $49.6 billion. Tier 1 capital rose 6.7% to $55.7 billion. Farm banks added 576 jobs in 2024, employing more than 74,000 rural Americans, and 97.1% of farm banks were profitable in 2024, with more than half reporting earnings growth. Net income rose 7.2% year over year to $5.9 billion.
While USDA forecasts suggest a rebound in farm income in 2025, producers are facing challenges including high input costs, export uncertainty from global tariffs and interest rate volatility, according to ABA analysis. Despite these pressures, farm banks remain well-positioned with strong capital reserves and local market knowledge, the report said.
“The next 12 months will test agricultural resilience once again,” Elfmann said. “We’re also hopeful that the recently enacted narrow version of the ACRE Act that was included in the reconciliation bill will allow ag banks to further expand access to credit for farmers and ranchers across the country.”
Editor’s note: There is also an infographic summarizing the report’s findings.
