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.
Rep. Mike Simpson (R-ID) joined us on Champions of Rural America to share his insights on upcoming changes to public land management and how they will benefit agriculture and the Western working class.
September 11, 2025 01:21 PM
·
As the White House works to close the trade gap, patience is wearing thin for some lawmakers. Senator Chuck Grassley (R-IA) says farmers are getting backed into a corner.
September 11, 2025 11:26 AM
·
RealAg Radio host Sean Haney joins us for a Canadian perspective on President Trump’s controversial tariff rollout, lower court rulings, and upcoming review by the U.S. Supreme Court.
September 10, 2025 03:10 PM
·
The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.
September 10, 2025 02:45 PM
·
September 10, 2025 02:23 PM
With new renewable volume obligations announced this year, the Iowa Soybean Association says they’ll be vital to a farmer’s bottom line.
September 10, 2025 01:19 PM
·
The Supplemental Nutrition Assistance Program (SNAP) was once again on the national stage, front and center this week before the House Agriculture Committee.
September 10, 2025 11:10 AM
·
Labor is an ongoing crisis in the ag sector. One industry group outlines three vital reforms to the H-2A visa program that farmers need to secure an affordable, stable workforce.
September 09, 2025 12:22 PM
·
Pressure to lower gas prices across the Golden State could be the saving grace of this year’s corn harvest. California may soon be the final U.S. state to approve E-15 sales.
September 09, 2025 11:12 AM
·
