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.
StoneX Director of Fertilizer, Josh Linville, joins us to discuss fertilizer market trends and risk management strategies to navigate an uncertain farm economy and fluctuating agricultural input costs.
Producers using farm entities should review ownership, labor contributions, and FSA paperwork before September 15.
On a year-over-year basis, final demand prices are up 6.5 percent, the largest annual increase since late 2022.
United Soybean Board Director and Missouri farmer Kyle Durham joins us to discuss farmer sentiment, alternative revenue programs, conservation incentives, domestic demand trends, and conditions on his farm this spring.
