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.
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Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
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Bridge payments are helping, but many producers still face losses and tight margins. AEM’s Curt Blades joins us to discuss how the current farm economy is pressuring equipment demand.
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Feed demand and premiums drive growth for the crop
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Purdue economist Dr. Joana Colussi discussed the U.S. and Brazil’s reliance on imported fertilizers and their impact on global food security amid rising input costs.
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USDA Secretary Brooke Rollins plans a farm visit in Missouri, hinting at a possible fertilizer relief announcement on RFD-TV earlier this week. USDA also restructures its research infrastructure and launches new food-safety centers.
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