Farm Costs Stay High: Why the Fed’s September Meeting Matters

Farm families are no strangers to rising costs. Even when expenses dip slightly, the squeeze doesn’t let up. The American Farm Bureau’s Market Intel Report, drawing on USDA’s 2025 Farm Production Expenditures Annual Summary, makes the picture clear.

Nationwide, farmers spent an estimated $477.6 billion in 2024—just under 1% less than the record set in 2023. That may sound like progress, but with average farm spending at $254,000, it’s little comfort. Compared to 2014, when expenses averaged $191,500, that’s a 33% jump. Lower inflation and cheaper feed offered modest relief, yet crop prices have dropped even faster, widening a five-year stretch where prices received don’t keep pace with prices paid.

And then there’s interest. The average farm paid nearly $6,800 on borrowed money in 2024, up 46% from a decade ago. None of this will surprise producers—it’s a story they’ve been living—but it’s valuable perspective. With inflation, weaker exports, and shrinking returns, analysts are, and producers should be, watching the Federal Reserve’s September 16–17 meeting for any signal that rates could ease.

For more: https://www.fb.org/market-intel/inflation-and-interest-continue-driving-up-farmers-costs