KANSAS CITY, MO – Ranchland values climbed sharply in the Tenth Federal Reserve District as strong cattle prices continued to support parts of the farm economy. The Kansas City Federal Reserve says ranchland values rose nearly 11 percent from a year ago and reached new record highs in early 2026.
Cropland values also improved modestly after recent weakness. Non-irrigated cropland rose about 2.5 percent, while irrigated cropland increased about 4 percent and remained near historic highs.
The farm economy remains split. The Kansas City Fed says cattle revenues, government payments, and strong land values are supporting balance sheets, while crop producers still face narrow margins, fertilizer uncertainty, and fuel cost concerns.
Credit conditions continue to show gradual stress. Loan demand increased steadily, repayment rates weakened modestly, and lenders reported that about 20 percent of borrowers had more carryover debt than last year.
Even so, loan denials remained low, and strong farmland values helped keep leverage steady.
Farm-Level Takeaway: Strong cattle markets are lifting ranchland values, but crop-sector margins and carryover debt still point to financial pressure.