MINNEAPOLIS, MINNESOTA (RFD NEWS) — Economic growth across the Federal Reserve’s Ninth District continued in 2025, but agriculture remained a weak spot as lower commodity prices, high costs, and trade uncertainty weighed on farm states. That was a key takeaway from discussions at the Minneapolis Fed’s Regional Economic Conditions Conference held in early January.
While overall gross domestic product (GDP) expanded, growth was uneven and often volatile. In states such as North Dakota, South Dakota, and Montana, agriculture played a central role in shaping economic outcomes, though not always positively. Farm profitability remained under pressure from depressed prices, elevated input costs, and high land rents.
Trade policy added another layer of strain. Economists noted that shifting tariff policies and retaliatory trade actions disrupted export markets critical to farm income. The stop-and-start nature of those policies made planning and risk management more difficult for producers.
Farm-Level Takeaway: Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
Tony St. James, RFD NEWS Markets Specialist
Outside the farm sector, labor markets cooled but remained relatively tight, limiting relief on wage and service costs faced by agriculture. Construction and infrastructure shortages continued to drive up energy and transportation costs, indirectly affecting farm operations.
Looking ahead, conference participants said agriculture’s performance will remain closely tied to price recovery, export stability, and input cost moderation, all of which will shape rural economic conditions in 2026.
In part five of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number three, California’s Prop 12 pork regulations.
February 01, 2024 04:06 PM
·
In part four of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number four, the Employment Retention Credit.
January 31, 2024 09:00 AM
·
In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
January 30, 2024 02:29 PM
·
Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
January 18, 2024 12:44 PM
·
The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
January 04, 2024 12:20 PM
·
As we start the new year, let’s take a look at some of the legislative items from 2023 affecting agriculture that will continue to play out in the political area for months to come.
January 02, 2024 12:00 PM
·
December 22, 2023 11:05 AM
·
Recent developments in ag law and tax — that is the topic of today’s Firm to Farm blog post by RFD-TV-Agri-Legal Expert Roger McEowen.
December 19, 2023 02:45 PM
·
December 14, 2023 05:22 PM
·
