2025 Farm Bank Performance Report

Key Findings

• The banking industry is a critical supplier of credit to agriculture, providing over a third (35.7%) of all farm loans in the U.S. — $212 billion outstanding as of December 2025.
• Small loans continue to make up over a third (33.2%) of banks’ farm and ranch lending, with $71 billion in small and micro farm and ranch loans on the books at the end of 2025.
• The nation’s 1,372 farm banks recorded strong asset quality and capital levels in 2025 from serving their communities and sticking to traditional banking practices: a focus on the fundamentals of credit, solid underwriting standards and knowledge of the customer’s business.
• Farm banks have deep roots in their communities. The median farm bank was 115 years old in 2025.
• Farm banks’ asset quality weakened in 2025, but measures of loan delinquency remained low by historical standards. Noncurrent agricultural loans as a share of total agricultural lending (loans 90 days or more past due or in nonaccrual status) increased by 19 basis points to 0.48% in 2025.
• Tier 1 capital grew 7.9%, or by $4.4 billion, to $59.7 billion in 2025 for farm banks as a group.
• Employment at farm banks grew by 2.7% in 2025, adding 2,037 jobs and employing over 76,000 rural Americans. Since 2015, employment at farm banks has risen 23.6%.
• In 2025, 98.2% of farm banks were profitable, with 82.6% reporting an increase in earnings.

The ABA definition of “farm bank” for the purposes of this report has changed over time. In 2012, ABA made the decision to include institutions, previously excluded, with more than $1 billion in assets as these institutions grew in number and importance to our country’s farmers and ranchers. In addition, due to changing reporting requirements and improved availability of data, ABA began to include savings and loan associations in this report.