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.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
February 12, 2026 04:26 PM
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Farm legal expert Roger McEowen discusses the EPA’s rescission of the 2009 endangerment finding on greenhouse gases and what it could mean for agriculture and rural America.
February 12, 2026 02:48 PM
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Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.
February 12, 2026 12:16 PM
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Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
February 12, 2026 08:00 AM
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Bankruptcy filings reflect prolonged margin pressure, rising debt, and limited financial flexibility across farm country. Bigger operating loans are helping farms manage costs, but they also signal growing reliance on borrowed capital.
February 10, 2026 01:35 PM
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A transition from traditional, technology-specific subsidies toward a performance-based, technology-neutral framework
February 10, 2026 08:00 AM
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