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News Release | NR 26-03 (3-12-26)

FCA board receives report on rural land values and approves proposed rule to amend the formula for the assessment of System banks and associations

McLEAN, Va., March 12, 2026 — At its monthly meeting today, the Farm Credit Administration (FCA) board received a report (PDF) on rural land values and approved a proposed rule to amend the formula for the assessment of Farm Credit System (System) banks and associations.

Report on rural land values

Farmland values in 2025 generally remained stable or increased marginally across the United States. A limited supply of land on the market, government financial support to the agricultural sector, and strong profit margins for livestock producers positively impacted land values.

Relatively high interest rates and weak commodity prices contributed to regional and local departures from the overall trend, with some areas seeing declining values while others are susceptible to potential softening in 2026.

With real estate mortgage loans representing more than 40 percent of the Farm Credit System loan portfolio, fluctuations in land values present a primary source of collateral risk. In addition, a decline in land values could potentially adversely affect the financial position of System borrowers when real estate is a primary asset on their balance sheets.

Below is a summary of regional land value trends based on nominal changes (i.e., not adjusted for inflation). Land value trends were derived from public data sources.

  • Midwest Region – Modest increase. The annualized increase in value, especially in Iowa, was due to an active fourth quarter in 2025 and stronger buyer enthusiasm. Absent this fourth quarter activity, sales indicated stable values.
  • Delta Region – Stable. Several factors, including a sustained period of operating losses for many producers in this region, could result in additional supply putting downward pressure on land values.
  • Texas – Increase. Land values were supported by strong buyer demand for all types of rural properties including those with agricultural, recreational, or future development uses.
  • West Region – Mixed. The region experienced highly variable land values, including material declines. Areas with declining values primarily included those with water availability issues and sustained operating losses for producers in some industries, including the production of grapes and tree nuts. As a result, there were continued instances of land supporting high-value crops being converted to other uses, including non-agricultural uses.
  • Northeast and Southeast Regions – Increase. Land values continued to show increases due to strong demand and limited supply.

Proposed rule

The board voted today to approve a proposed rule to amend FCA regulations to update apportionment of FCA administrative assessments among System banks, associations, and designated other System entities to address the change in the System’s composition since the rule became effective. The proposed changes impact FCA’s current assessment of System banks and associations, but not the total assessment amount. The proposed rule also removes references to entities that no longer exist: the National Cooperative Bank Development Corporation and the Farm Credit Finance Corporation of Puerto Rico.

Notational votes

Since the Feb. 12 FCA board meeting, two notational votes have occurred. Notational votes are actions the FCA board takes between board meetings.

On Feb. 19, the board voted to authorize staff to negotiate and execute an agreement related to a recommendation (#26-01) by FCA’s Regulatory Enforcement Committee.

On March 5, the board adopted FCA’s strategic plan for fiscal years 2026-2030.

Consistent with the Office of Management and Budget’s current guidance, FCA will soon publish the plan on its website.

Enforcement action implemented

On March 6, FCA entered into a supervisory agreement with an agricultural credit association to take actions to address various weaknesses and deficiencies in board governance, corrective actions, and regulatory compliance.