Federal Reserve survey: Agricultural conditions remain flat

CHICAGO — Agricultural economic conditions are mostly flat since mid-January across the Corn Belt's Federal Reserve Districts, according to a survey.

The Federal Reserve System's Beige Book provided a snapshot of economic conditions collected on or before Feb. 23.

The survey, conducted by each Federal Reserve Bank, summarizes reports from banks and branch directors, plus interviews and online questionnaires completed by businesses, community groups, economists, market experts and other sources.

This document summarizes comments received and is not a commentary on the views of Federal Reserve officials.

Here are what the Corn Belt districts reported regarding the agricultural conditions.

Chicago

"Contacts expected farm income for Seventh District producers in 2026 to be similar to 2025. High input prices, especially for fertilizers, continued to concern farmers," the report said.

"Crop prices increased a bit overall, as a decline in corn prices was offset by higher soybean and wheat prices. Farm income received a boost from trade-related government payments; nonetheless, some operators were selling crops from storage to cover bills and pay debts.

"Contacts expected increased government subsidies associated with the One Big Beautiful Bill Act to lead to an expansion of coverage and higher levels of participation in crop insurance."

Livestock operations were generally under less financial pressure than crop farms.

Dairy prices increased, and calves designated for beef production boosted the bottom line for many dairies. Cattle and hog prices were up, while egg prices declined.

Slow sales of farm machinery left lots full at dealers. Commercial insurance costs have risen for farm supply and grain warehousing businesses.

The Seventh District of Chicago includes the northern two-thirds of Illinois and Indiana, all of Iowa, the southern two-thirds of Wisconsin and Michigan's Lower Peninsula.

St. Louis

Eighth District agriculture conditions have remained unchanged since the previous report.

"An agribusiness contact in Arkansas reported that weather uncertainty and rising input costs were making it harder to secure crop loans, which could leave ground unplanted and reduce overall production," according to the Beige Book.

"A major agriculture lender reported ongoing financial strain among rice farmers, with farm equipment auctions at record levels. Another banker reported that farmers were seeking higher credit lines due to income pressure.

"Nevertheless, most agriculture lenders observed only limited signs of forced liquidation of assets among farmers, indicating resilience in agribusiness despite hardship."

The St. Louis Federal Reserve District includes the southern parts of Illinois and Indiana and eastern half of Missouri, as well as parts of Tennessee, Arkansas, Kentucky and Mississippi.

Minneapolis

Agricultural conditions in the Ninth District remained weak since the last report.

According to a recent survey, two-thirds of ag lenders reported that farm incomes decreased in the fourth quarter of 2025 from a year earlier.

Contacts reported that producers who were diversified into livestock were holding up better than those heavily concentrated in crops.

A contact in the sugar beet segment said that the market was hampered by reduced sugar consumption and sugar import quotas that had not adjusted to demand.

The Minneapolis-based Ninth District includes all of Minnesota, the Dakotas and Montana, the northern one-third of Wisconsin and Michigan's Upper Peninsula.

Kansas City

Conditions in the Tenth District farm economy remained uneven alongside continued weakness in the crop sector and strength in cattle markets.

"Profit opportunities for key crops in the region remained narrow despite a notable increase in soybean prices, in line with expectations that China may commit to additional imports," the report noted.

According to the latest lender survey, farm finances continued to weaken more quickly in areas most heavily dependent on crop revenues.

Still, deterioration in loan repayment rates eased slightly, and farm real estate values remained strong through the end of 2025.

Ranchland values throughout the Tenth District increased modestly from a year ago, alongside strength in the cattle sector.

In contrast, cropland values were largely flat on average, but increased slightly in some areas, particularly in cattle production areas.

The Kansas City-based district includes the western part of Missouri, Kansas, Nebraska, Oklahoma, Wyoming, Colorado and northern New Mexico.