Farm banks accounted for more than one-third of all farm lending nationwide while maintaining solid capital, profitability and employment levels in 2025, according to the 2025 Farm Bank Performance Report from the American Bankers Association.
Banks held nearly $212 billion in farm loans at the end of 2025, representing 35.7% of total agricultural credit outstanding in the United States, according to the report. The nation’s 1,372 farm banks — defined by ABA as banks whose ratio of domestic farm loans to total domestic loans is equal to or greater than the industry average — accounted for $122 billion of that total (57% of all bank farm loans) and remained a major source of credit for small and micro farms. The median farm bank was 115 years old in 2025.
“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.”
Report highlights: Deep rural roots
Banks held more than 1 million small farm loans totaling $71 billion, including over 630,000 micro farm loans worth more than $14 billion. Tier 1 capital at farm banks increased 7.9%, or $4.4 billion, reaching $59.7 billion in 2025. According to the report, 98.2% of farm banks were profitable in 2025, with 73.1% reporting higher earnings than the prior year.
Credit quality weakened modestly in 2025 after several years of historically low delinquency rates, though noncurrent agricultural loans remained low by historical standards, study results showed.
Farm banks added 2,037 jobs in 2025 and employed more than 76,000 rural America, marking a 23.6% increase in employment since 2015.
Regional performance
The 10 farm banks in the Northeast region reported an 11.7% increase in farm loans from a year ago, rising $173.2 million to $1.65 billion. Agricultural production loans grew 14.7% from a year ago to $134.5 million, while farmland loans increased 11.5% to $1.52 billion.
The 139 farm banks in the South region increased farm loans by 7.02%, or $717.85 million from a year ago, rising to $10.94 billion in 2025. Agricultural production loans increased 2.12% from a year ago, to $2.78 billion, while farmland loans rose by 8.81% to $8.16 billion.
The 649 farm banks in the Corn Belt region increased farm loans by 5.80%, or $3.16 billion, from a year ago to $57.69 billion in 2025. Agricultural production loans rose by 6.74% from a year ago to $24.07 billion, while farmland loans rose by 5.13% to $33.61 billion.
The 536 farm banks in the Plains region increased their farm loans by 8.30%, or $3.60 billion, from a year ago to $47.02 billion in 2025. Agricultural production loans rose 11.39% from a year ago to $24.05 billion, while farmland loans increased 5.24% to $22.97 billion.
The 38 farm banks in the West region increased their farm loans by 3.40%, or $161.84 million, from a year ago to $4.92 billion in 2025. Agricultural production loans rose by 3.32% from a year ago to $2.05 billion, and farmland loans rose 3.46% to $2.87 billion.
