The April 2025 Quarterly Report on Economic Conditions and Farm Credit System Performance shows a resilient U.S. ag economy entering the year with improving macro indicators, despite growing uncertainty in trade and regional volatility in returns.
🔹 Farm Income & Credit Health
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U.S. net farm income is projected to rise in 2025, aided by increased government payments.
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Farm balance sheets remain strong, with assets at $4.8 trillion and continued capital growth in the Farm Credit System.
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Liquidity levels and solvency ratios remain solid, offering flexibility amid inflation and elevated interest rates.
🔹 Swine Sector Insight
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Loans to the hog sector accounted for 2.0% of the System’s total portfolio in 2024, totaling $8.4 billion, down 2.7% year-over-year, showing the ongoing challenges facing pork producers.
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The broader animal production portfolio, including dairy (5.7%) and poultry (2.4%), saw growth of 6.4% overall.
🔹 Risks to Monitor in 2025
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Trade policy shifts, persistent high interest rates, stress in grain markets, and foreign animal disease threats like avian influenza are key factors being closely tracked.
🔹 Overall System Performance
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Total FCS loan volume reached $428.9 billion, with strong earnings of $7.8 billion in 2024, up from $7.4B the year prior.
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Over 96% of System institutions are rated financially sound (FIRS 1 or 2), signaling continued creditworthiness and stability.
📄 Read the Full Report (PDF):
👉 Download the April 2025 Farm Credit System Report
