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.
Joe Peiffer with Ag & Business Legal Strategies advises farmers on end-of-year financial planning, including preparing records, avoiding common credit mistakes, and evaluating equipment purchases for 2026.
December 08, 2025 04:43 PM
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Credit stress is building for row-crop farms despite steady land values and slight price improvements.
December 06, 2025 03:00 PM
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RFD-TV Farm Legal and Tax Expert Roger McEowen explains the basics of Low-Risk Credit in Farming, and how an understanding of the farm credit landscape lets producers tactfully approach debt.
December 05, 2025 02:40 PM
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Low-risk credit farming is not a technique; it is a culture of financial discipline. It requires the same level of expertise in the farm office as it does in the field.
December 05, 2025 07:00 AM
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Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
December 04, 2025 02:59 PM
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Higher ocean freight raises export costs just as global grain competition intensifies.
December 04, 2025 02:50 PM
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Rep. Michelle Fischbach shares her appreciation for rural communities and outlines how the Working Families Tax Cut is aimed to support farm families on RFD-TV’s Champions of Rural America.
December 04, 2025 01:31 PM
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Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
December 04, 2025 01:20 PM
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Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
December 02, 2025 06:17 AM
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