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 await concrete trade commitments from China. Until then, export prospects for soybeans, corn, and sorghum remain uncertain against strong South American competition.
September 16, 2025 11:04 AM
·
Understanding the Big, Beautiful Bill’s complex impact on SNAP benefits – that’s the topic of today’s Firm to Farm blog post by RFD-TV’s legal expert, Roger McEowen.
September 15, 2025 04:37 PM
·
U.S. trade talks with China resume, but meat industry leaders say dealing with shifting demand and market uncertainty is nothing new in this side of the ag sector.
September 15, 2025 12:57 PM
·
Rather than making “cuts” to SNAP, as has been claimed, the One Big Beautiful Bill merely modifies the program’s funding structure.
September 15, 2025 12:50 PM
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
September 15, 2025 12:21 PM
·
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
September 12, 2025 11:18 AM
·
