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
Delays on year-round E15 keep potential corn demand and fuel savings in limbo.
Higher energy costs ripple through local farm supply chains.
Strong export demand supports barge markets, but weather risks remain.
A stalled World Trade Organization appeals body increases long-term trade policy risk for U.S. agriculture.
Policy awareness is becoming part of everyday risk management.
Nick Westgerdes of the American Society of Farm Managers & Rural Appraisers breaks down farmland values, rental rates, and sales trends in Illinois, while previewing the upcoming land values conference for 2026.
