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.
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
January 19, 2026 03:00 PM
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In a landmark ruling delivered in late 2025, the U.S. Supreme Court significantly narrowed the scope of the National Environmental Policy Act.
January 19, 2026 11:25 AM
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Rising rural business confidence supports local ag economies, but taxes and labor shortages remain key constraints.
January 17, 2026 02:00 PM
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Farm CPA Paul Neiffer discusses how January’s WASDE report could impact ARC and PLC payments and updates on disaster relief programs as farmers navigate a challenging market environment.
January 16, 2026 01:34 PM
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Soft equipment sales signal cautious farm spending as producers prioritize cash flow over expansion.
January 16, 2026 07:00 AM
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Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.
January 15, 2026 03:04 PM
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Roger McEowen with the Washburn University School of Law joined us to provide legal analysis on key cases shaping the agricultural landscape heading into the year ahead.
January 14, 2026 01:49 PM
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Freight volatility increasingly determines export margins, making logistics costs as important as price in marketing decisions.
January 14, 2026 06:00 AM
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Larger grain stocks increase supply pressure, but strong fall disappearance — especially for corn and sorghum — suggests demand remains an important offset.
January 13, 2026 01:02 PM
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