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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Farmer Jeffry Mitchell with the Mississippi Farm Bureau joins us for a spring planting update from the southeast region as drought, input costs, and fertilizer access complicate crop progress.
April 06, 2026 02:04 PM
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More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
April 06, 2026 12:02 PM
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Farm Bureau Economist Dr. Faith Parum warns farmers to brace for more losses as the war in Iran sends shockwaves through the ag economy and raises input costs even further.
April 02, 2026 01:31 PM
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Margin pressure and competitiveness concerns are shaping cautious outlooks.
April 02, 2026 12:40 PM
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Fewer DEF-related shutdowns could mean more uptime during planting and harvest seasons.
April 02, 2026 11:44 AM
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