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.
Understanding how these tax provisions interact will be key for farmers planning long-term equipment purchases or transfers within the family.
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NEFB President Mark McHargue provides an update from the Husker State, where farmers are working hard to bring in one of the largest harvests in recent years.
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Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the crude oil markets.
October 17, 2025 01:26 PM
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National Farmers Union (NFU) President Rob Larew discusses the urgent need for aid as farm families face mounting input costs and long-term market uncertainty.
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Farm CPA Paul Neiffer outlines how producers should navigate evolving Farm Bill provisions and prepare their operations for the next crop year.
October 16, 2025 04:14 PM
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A new proposal from the Federal Aviation Administration (FAA) could transform how farmers use drones, allowing commercial operators to fly beyond their visual line of sight.
October 14, 2025 01:51 PM
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For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
October 13, 2025 04:08 PM
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The FAA’s proposed rule to allow drones to operate beyond visual line of sight (BVLOS) could soon revolutionize how farmers and ranchers manage their land.
October 13, 2025 03:39 PM
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