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.
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
September 15, 2025 12:21 PM
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U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
September 12, 2025 11:18 AM
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Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report for a closer look at how Trump’s Big, Beautiful Bill changes to base acres and potential impacts on future ARC and PLC payments.
September 11, 2025 01:36 PM
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Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s
Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.
September 05, 2025 12:40 PM
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Farmers are struggling with low commodity prices and skyrocketing input costs, resulting in debt that is outpacing income across the sector, according to the USDA’s new farm income forecast.
September 04, 2025 01:05 PM
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Make the most of your Social Security benefits! Join us to explore eligibility requirements, when to file, and helpful tools like the AARP Social Security Resource Center.
August 18, 2025 03:44 PM
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August 14, 2025 10:34 AM
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Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.
Roger McEowen with the Washburn School of Law joins us now with the highlights.
