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What’s in store for the ag economy in 2025

An ag economist expects the ag economy to begin its rebound in the second half of 2025.

Nationwide senior economist Ben Ayers says farmers should expect a sluggish start in the new year.

“We’re seeing signs that consumers are getting a little more price conscious,” he says. “They’re a little worried about their balance sheets with high prices still. We’re expecting things to slow down a little bit in the first half of next year, but not very much, just a little bit slower than what we’ve seen over the course of 2024.”

He tells Brownfield the Federal Reserve is expected to continue to reduce rates.

“When you combine it with the rate decreases they’ve already done this year and the ones we do expect, particularly in the first half of next year and by the middle stage of the 2025, it should be much lower interest rates in much easier environment to get an operating loan,” he says.

Brownfield interviewed Ayers at the 2024 Ohio State Ag Policy and Outlook Conference in Columbus, Ohio.