NASHVILLE, TENN. (RFD NEWS) — New analysis from the Minneapolis Federal Reserve suggests tariffs are not the main reason goods prices remain elevated, raising broader concerns for input costs across agriculture and rural economies.
Economists found core goods inflation continues to run above historical averages, but price increases do not align with where tariffs should have the biggest impact. Some goods with high tariff exposure have seen limited inflation, while others with low tariffs have posted stronger price gains.
The report estimates tariffs are contributing only about 0.5 percentage points to overall inflation, meaning other factors — including supply chain shifts, demand changes, and pricing behavior — are playing a larger role. Inflation in goods remains elevated at roughly 1.9% year-over-year, well above pre-pandemic norms.
For agriculture, that disconnect matters. Equipment, inputs, and consumer goods tied to farm operations may continue rising in cost even if tariff pressures ease, complicating budgeting decisions.
The findings also suggest that some price increases may still be working their way through the system, especially as inventories turn and contracts reset.
Farm-Level Takeaway: Input costs may stay elevated beyond tariff impacts.
Tony St. James, RFD NEWS Markets Specialist
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
October 22, 2025 12:07 PM
·
NCBA CEO Colin Woodall says more conversations need to occur with stakeholders present surrounding President Trump’s proposal to lower consumer beef prices with Argentinian imports.
October 22, 2025 11:53 AM
·
Lawmakers are pressing for answers on how Washington’s “managed trade” approach — keeping leverage through long-term tariffs — will affect farmers, global markets, and future export opportunities.
October 21, 2025 12:17 PM
·
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
October 21, 2025 11:22 AM
·
Over the past decade, Tractor Supply has expanded its support through sponsorships and youth programs, all part of its broader mission to invest in the future of agriculture.
October 20, 2025 03:53 PM
·
Understanding how these tax provisions interact will be key for farmers planning long-term equipment purchases or transfers within the family.
October 20, 2025 03:45 PM
·
