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.
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“You just need to wait a little bit.”
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Rural areas across the United States are experiencing significant shortages of attorneys, CPAs and other tax professionals, creating “legal deserts” that hinder farmers and ranchers’ access to essential business services.
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Before you turn the calendar to 2025, take a few moments to think through a few important tax planning matters for your farm or ranch.
December 31, 2024 11:31 AM
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RFD-TV Legal Expert Roger McEowen with Kansas’ Washburn School of Law breaks it down in his latest Firm to Farm blog post.
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Legal issues can arise for farmers and ranchers when conducting business informally or in another state. RFD-TV Ag Law & Tax Expert Roger McEowen explores both topics in his latest Firm to Farm blog post.
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