Federal Reserve Cuts Rates To Ease Farm Credit

The modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing for agriculture, giving some relief to producers under heavy debt loads.

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.
Related Stories
Farm CPA Paul Neiffer outlines the key difference between previous ECAP payments and the Farm Bridge Assistance Program.
Larger operations maintain cost advantages, while softer equipment sales suggest producers are pacing machinery upgrades amid tighter margins.
Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.
Despite China’s sharp drop in grain purchases this year, new USDA export data this week shows that even some buying activity from the trade giant still moves the markets.
Farm Legal Expert Roger McEowen with the Washburn School of Law joins us to share more about the North Dakota court decision and the its larger impact on agriculture.
Fertilizer markets face uncertainty after President Trump raised the possibility of tariffs on Canadian imports, with analysts warning of supply and pricing risks. Josh Linville with StoneX provides a fertilizer industry outlook.
A new study found that retaining the EPA’s half-RIN credit protects soybean demand, farm income, and crushing-sector strength while preserving biofuel market flexibility.
“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.
CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Rollins will also tour a small soybean operation in Iowa before her appearance at Lucas Oil Stadium.
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
Tara Vander Dussen, fifth-generation dairy farmer, environmental scientist, and co-host of Discover Ag, joined RFD-TV to talk about her work in agriculture and her passion for sharing the story of dairy.
Dr. Jeffrey Gold, President of the University of Nebraska, joined RFD-TV to discuss how seasonal stress and mental health concerns can make it more challenging to get a restful night’s sleep
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.