WASHINGTON, DC (RFD-TV) — The Federal Reserve lowered its benchmark interest rate by a quarter-point on September 17, the first cut of 2025. Chair Jerome Powell said the move was a “risk management” step to support the labor market while inflation remains above target. The Fed also raised its 2026 inflation outlook, signaling persistent cost pressures across the economy.
For agriculture, the modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing, giving some relief to producers under heavy debt loads. At the same time, input costs for fuel, fertilizer, and labor remain elevated, limiting overall margin gains. A softer U.S. dollar could lend support to farm exports, but trade demand remains the dominant driver for prices.
Tony’s Farm-Level Takeaway: The Fed’s rate cut offers limited relief for farm credit costs, but persistent inflation keeps input prices high. Farmers may find refinancing opportunities, though cash-flow discipline remains critical.
Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
December 04, 2025 02:59 PM
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Higher ocean freight raises export costs just as global grain competition intensifies.
December 04, 2025 02:50 PM
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Rep. Michelle Fischbach shares her appreciation for rural communities and outlines how the Working Families Tax Cut is aimed to support farm families on RFD-TV’s Champions of Rural America.
December 04, 2025 01:31 PM
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Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
December 04, 2025 01:20 PM
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Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
December 02, 2025 06:17 AM
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Fair market value shapes taxes, transitions, lending, and sales, making accurate valuation essential for long-term planning.
December 01, 2025 11:21 AM
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Strong yields and higher cattle prices helped stabilize conditions, but weak crop prices and rising carryover debt remain major challenges for Eleventh District farmers.
November 25, 2025 02:55 PM
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AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
November 25, 2025 12:40 PM
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Farm legal expert Roger McEowen reviews the history of the Waters of the United States (WOTUS) rule and outlines how shifting definitions across multiple administrations have created regulatory confusion for landowners.
November 24, 2025 12:38 PM
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