As a mission-based cooperative lender and member of the Farm Credit System, CoBank is committed to serving as a good corporate citizen. The bank maintains a variety of corporate social responsibility programs primarily focused on rural America and the vitality of rural communities and industries.
We deliver vital support for the U.S. rural economy, providing financial services to agribusinesses and rural power, water and communications providers in all 50 states. It's who we are and what we believe in. Join us.
The long-anticipated “reciprocal” tariff plan turned out to be much more impactful than businesses had expected, and significant uncertainty remains as we enter a 90-day negotiating period with many of our trade partners. Regardless of how those negotiations evolve, the increasingly unpredictable nature of U.S. trade policy will have long-term implications for our trade relationships. Given the anxiety over tariffs and other news coming out of Washington D.C., consumer and business sentiment has turned sharply negative over the past two months. However, we will have to wait for the “hard” data to see if that translates into a weakening economy.
Grain, oilseed, and cotton prices have fallen by roughly 50% since 2022, but input costs have not seen a parallel drop. Uncertainty around the seemingly endless tariff drama, a less favorable federal biofuels policy environment, and an expected record-large South American harvest provide a downbeat outlook. Given low feed costs and strong consumer demand, meat, livestock and dairy markets have been enjoying generally good profitability, but tariff uncertainty will continue to weigh on markets for the foreseeable future.
Amid surging demand for electricity across the nation, a tariff-induced spike in the cost of transformers will further accelerate the costs of delivery. The new administration is taking a “technology agnostic” view, which may speed up the broadband buildout in underserved regions but won’t provide the advantages of a “fiber-first” approach.
Disclaimer: The information provided in this report is not intended to be investment, tax, or legal advice and should not be relied upon by recipients for such purposes. The information contained in this report has been compiled from what CoBank regards as reliable sources. However, CoBank does not make any representation or warranty regarding the content, and disclaims any responsibility for the information, materials, third-party opinions, and data included in this report. In no event will CoBank be liable for any decision made or actions taken by any person or persons relying on the information contained in this report.
Stay ahead of the game in your field. Subscribe today.
Get CoBank's industry-leading Knowledge Exchange research reports delivered straight to your inbox as soon as they're released.
Have a comment or question about these reports?
Contact CoBank's Knowledge Exchange team to ask questions, engage with analysts or receive additional information.
