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.
Farm CPA Paul Neiffer shares his perspective on the uncertain outlook of federal farm relief and the Farm Bill, which may not materialize until the government shutdown ends.
October 09, 2025 01:29 PM
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AFBF Associate Economist Samantha Ayoub joins us to dive into H-2A visa program changes and what can be done to ease the pressure on producers.
October 09, 2025 12:11 PM
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Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
October 08, 2025 03:03 PM
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RFD-TV farm legal and taxation expert, Roger McOwen, joins us with his perspective on what farmers can expect from the delayed aid package.
October 08, 2025 01:26 PM
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Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
October 08, 2025 11:41 AM
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Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
October 08, 2025 11:19 AM
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