As the Fed works to keep inflation under control, higher interest rates have been a big part of that strategy. Research shows the Fed’s ninth district, which includes several large farm states, has seen their rates double over the last couple of years.
“Since about early 2021, interest rates for ag producers have increased around 400 basis points, and what that equates to is four percent interest. To put it into perspective, in 2021, during renewal season, a lot of ag producers were getting around four-and-a-half to 4.6 percent interest rates for their production loans. Now, in 2023, they’re being charged about eight-and-a-half percent. That’s a pretty big increase over two years. In 2023, interest expenses for ag production loans in the district totaled about $840 million. Now, to put that in comparison, in 2021, interest expenses for ag production loans were $415 million. And then, in 2022, the total interest expense paid was $490 million. So, that total interest paid in 2023 is more than double from 2021, so that’s a very large increase in two years,” said Tait Berg.
The Fed reached out to local banks in the area and found the last time interest rates were this high was around 2007.
The review signals renewed scrutiny of China’s agricultural trade pledges and could reshape farm export opportunities depending on its outcome.
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The U.S.-Japan tech pact signals long-term investment in bio-innovation, connectivity, and secure supply chains — all of which can strengthen rural manufacturing, ag exports, and digital infrastructure critical to the next generation of farm productivity.
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Export volumes remain positive year-to-date, but weaker soybean loadings and slowing wheat movement hint at early bottlenecks in global demand or river logistics. Farmers should watch basis levels and freight conditions as export competition heats up.
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Harvest Marches on as River Logistics And Inputs Steer Bids
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Farmers who rely on H-2A workers will see a few key changes to speed up the process and make it fairer. On the ground, producers say labor issues create shortfalls in otherwise productive harvests.
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John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
October 27, 2025 01:00 PM
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