More financially distressed farmers are expected to lose their property soon as loan repayments and incomes continue to falter

Financial conditions in the agriculture economy are flashing more signs of strain as farmers’ costs remain high while prices for their crops stay low.

A survey last month from the Chicago Fed found that third-quarter repayment rates in the Midwest for non-real-estate farm loans were lower than a year earlier for the eighth quarter in a row.

Meanwhile, 21% of the lenders who responded to the survey said collateral requirements for farm loans rose in the third quarter, while none reported that requirements eased.

And an overwhelming 92% majority expect net cash earnings, including government payments, for crop farmers to be lower during the fall and winter than a year earlier. 

As a result, nearly half the bankers surveyed see forced sales or liquidations of farm assets owned by financially distressed farmers rising in the next three to six months.

Earlier this month, the American Soybean Association (ASA) projected that 2025 will mark a third straight year...