WASHINGTON, DC – Farm Service Agency lending increased sharply in fiscal 2025 as producers faced high costs, tight margins, and greater pressure on working capital, according to American Farm Bureau Federation economist Faith Parum.
FSA obligated $6.74 billion across 27,792 farm loans, up 25% in dollars and 13% in loan count from fiscal 2024. The average amount per loan rose from about $220,000 to nearly $243,000.
Operating loans represented nearly 60% of all FSA loans, reflecting the importance of financing annual expenses such as seed, fertilizer, feed, fuel, livestock, and equipment. Guaranteed operating loan obligations increased 37%.
Beginning farmers were major users of the programs. They received 15,552 loans totaling $3.53 billion, representing 56% of all FSA loans and 52% of dollars obligated during the year.
Farm Bureau says access to affordable credit is becoming more important as production costs remain historically high and several years of weak margins drain working capital and weaken balance sheets.
Farm-Level Takeaway: Rising FSA lending underscores the growing importance of affordable credit as producers manage high costs and tighter working capital.