Higher interest rates have taken a toll on Rural America. While most farmers would like them to come down, it is looking more and more unlikely.
Economist Ben Brown says they could inch up before they come back down:
“Given the inflation data that we’ve seen both at the consumer level and at the wholesale level the last couple of months, I have a really hard time seeing how the Fed can just maintain interest rates where they’re at—and certainly I wouldn’t remove the possibility of an interest rate hike here before May or June,” Brown said. “To look at last week’s inflation data, the Consumer Price Index came up month-over-month higher than even what the expectations are. That’s the third straight month that we’ve seen inflation come in hotter than expected, and the Producer Price Index was also up, signaling that wholesale inflation will eventually trickle down to consumer inflation as well, so I do think we’re seeing the prices increase faster than they expected. I think that’s got the Federal Reserve a little bit concerned.”
Ben Brown, Economist
This month’s inflation reports both came in hotter than expected, showing high prices remain sticky. Brown says he believes prices are still rising faster than expected, and that could lead the Fed to take action in the coming weeks.
Related Stories
Greater transparency into USDA-backed lending can help rural lenders and producers better assess credit availability and investment trends.
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
Roger McEowen, with the Washburn School of Law, offers an in-depth look at two of the top legal issues of 202. Today, he walks through last year’s Waters of the United States (WOTUS) ruling and “lawfare.”
Lewis Williamson of HTS Commodities joined us with an update on the historic winter storm impacts and his outlook on today’s ag markets.
Marilyn Schlake with the UNL Department of Agricultural Economics joined us for a closer look at the evolving role of livestock sale barns.
RFD NEWS correspondent Frank McCaffrey recently spoke with Dr. Mike Vickers, a South Texas rancher, who says illegal border crossings have dramatically declined in the last year.
New rule speeds leasing and permitting for federal oil and gas development
Texas Farm Bureau President Russell Boening joined us with the latest update on storm conditions and impacts across the state.
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
