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December rate cut brings relief for farmers planning 2026 borrowing

The Federal Reserve cut interest rates another quarter point this week.

Ag economist Dr. Megan Roberts with Compeer Financial says the Fed is likely responding to labor market concerns.

“The non-farm unemployment rate ticked up in September. We are missing some data because of the government shutdown, so we don’t have the October or November unemployment rates right now. But in September it was 4.4 percent, and that was a little bit high.”

She tells Brownfield the rate cut is a positive for farmers who plan to borrow in 2026.

“It’s just a little bit more moderation in interest rates. We’ve already had two cuts at the last two Fed open market committee meetings (so) it’s just nice to see a little bit of that moderation of interest rates.”

The Fed’s December rate cut brought the short-term federal funds rate to a target range of 3.5 to 3.75 percent.

Roberts made these comments during an upcoming Compeer Financial Economic Minute Podcast, a client partnership with Brownfield.