Farm banks remained a cornerstone of the rural economy in 2025, providing critical financing to farmers, ranchers, and small agricultural operations across the country.
According to the American Bankers Association, banks held nearly $212 billion in farm loans, accounting for more than one-third of all agricultural credit nationwide. Of that total, 1,372 farm banks—many deeply rooted in rural communities—provided $122 billion in lending, with a strong focus on small and micro-farms. These institutions supported more than one million small farm loans, helping producers manage operating costs, invest in equipment, and sustain their businesses.
“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.”
Beyond lending, farm banks contribute to rural stability through job creation and long-term community ties and continue to serve as a vital lifeline for agricultural producers and the broader rural economy.
Key Highlights
- Strong role in farm lending: Banks provided more than $212 billion in farm loans in 2025, with farm banks accounting for $122 billion, or 57% of all bank farm loans.
- Support for small and micro farms: Banks held more than 1 million small farm loans totaling $71 billion, including over 630,000 micro farm loans worth more than $14 billion.
- Solid capital levels: Tier 1 capital at farm banks increased 7.9%, or $4.4 billion, reaching $59.7 billion in 2025.
- Broad profitability: 98.2% of farm banks were profitable in 2025, with 73.1% reporting higher earnings than the prior year.
- Asset quality continued to normalize: Credit quality weakened modestly in 2025 after several years of historically low delinquency rates, though noncurrent agricultural loans remained low by historical standards.
- Growing rural employment: 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.
- Deep community roots: The median farm bank was 115 years old in 2025, reflecting longstanding ties to the communities they serve.
Read more online from ABA here: https://www.aba.com/about-us/press-room/press-releases/farm-banks-remain-key-source-of-credit-for-americas-farmers-and-rural-communities
