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
The bill to once again allow schools to offer whole milk and 2% milk will now go to President Trump for approval.
Farm Legal Expert Roger McEowen with the Washburn School of Law joins us to share more about the North Dakota court decision and the its larger impact on agriculture.
A new study found that retaining the EPA’s half-RIN credit protects soybean demand, farm income, and crushing-sector strength while preserving biofuel market flexibility.
Rising federal debt is increasing pressure on Washington to limit spending, which could tighten future funding and delivery for agricultural programs.
Western Caucus member Rep. Bruce Westerman (R-AR) details the SPEED Act on Champions of Rural America. The legislation aims to reform NEPA, streamline permitting, and expand domestic energy development.
“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.
CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.
Plan for sharp, short-term volatility after unexpected outages; permanent closures rarely trigger major price spread disruptions.
Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
