Tariffs and interest rate uncertainty rule the market

Walking on thin ice: Farmers experiencing profit declines ahead of tariff challenges

Marcus Wilhelm

Farmers’ balance sheets are beginning to show some stress. Declines in working capital that started in the 2023 growing year have continued, and the current crop forecast indicates losses nearing $200 per acre for some operations. 

While farmers have benefited from significant belt-tightening over the last two years, it hasn’t been sufficient to thrive in this low-price environment. SGA expenses have risen by 3% to 4% across the board, interest expenses are up and tariffs are looming. 

More optimistically, the co-op model is working. Many co-ops are keeping healthy balance sheets, having been built to weather storms like this. Where they’re not, stresses are appearing, which could result in consolidations or joint ventures. 

Tariffs do not appear to be having much impact so far. Imports of most products and grain exports continue to flow. Telltale signs will emerge over the next 60–90 days as tariff negotiations continue and the purchase of inputs for the 2026 crop begins.

Clearly, the current market volatility is uncomfortable, but it can create opportunities for those operating from a position of financial strength. Consolidations could begin to accelerate, but it's going to be a case of the haves versus the have-nots.

Taking a cue from the big guys: It’s about the killer bundle

Jeff Johnston

Comcast and Charter are onto something, and it could be wise for rural broadband providers to take note. 

Comcast and Charter gained a combined 837,000 wireless customers in the first quarter of 2025. These additions—where wireless service is bundled with their broadband offerings—reduced broadband customer attrition, demonstrating that customers prefer fewer bills, more savings and integrated connectivity.

Bundled service resonates with customers and enables cable providers to compete against the national operators’ fixed wireless smartphone bundle, which is causing competitive headwinds for incumbent cable operators.

So far, the national wireless operators have focused on their core—urban and suburban markets. However, as the race for revenue intensifies, expansion into smaller cities and rural areas may not be far off. If—or more likely, when—that occurs, rural broadband providers will confront new competition in the form of broadband and wireless bundles that have proven consumer appeal.

At the same time, many obstacles that previously hindered entry into the wireless business have diminished. Is now the time for rural broadband providers to consider a defensive strategy that integrates broadband and wireless into their own killer bundle?

Maybe so.

Tariffs set to disrupt global power component manufacturing

Brock Taylor

Just as power demand is poised to skyrocket, the evolving tariff situation could introduce another layer of complexity to an already intricate environment. 

One critical component, the power transformer, is a truly global product that relies on materials sourced from various countries, which in turn depend on their own supply chains for manufacturing. The supply chain for built transformers already exceeds two years in some instances. Increasing demand is likely to extend wait times even further.

Transformer manufacturing requires rare earth minerals, silicon/electrical steel, aluminum or copper wiring and other raw materials. In some countries, like China, these materials are sourced, and transformers are manufactured domestically. In other cases, such as Vietnam, Mexico, India and the U.S., many raw materials are imported for local assembly. 

A complex supply chain is sure to complicate tariff negotiations.

Tariffs are also affecting manufacturers of natural gas turbines, of which the U.S. is a net exporter.

In its first quarter 10-Q, GE Vernova, a leading global manufacturer of gas turbines, stated that its current estimated cost impact from global tariffs in 2025 will be approximately $300 million to $400 million, after taking into consideration contractual protections and mitigating actions. According to reports, wait times for some gas turbines are as long as five years.

Still, many utilities are anticipating the administration’s elimination or relaxation of regulations that would have resulted in the retirement of some less-efficient coal plants. Extending the life of these legacy operations could be beneficial as both the time frames and costs of new plants increase.