The Federal Reserve has finally raised interest rates by .25-percent after 7 years of steady values. USDA’s Chief Economist Rob Johansson talks about what higher interest rates could mean for agriculture.

He says farmers will be paying more in interest rates for their 2016 operating loans, but could pay lower rental rates. And the impact on land and capital values…

He says the move could also cause the dollar to gain more strength.

Johansson says the small interest rate increase may be a sign of a stronger U.S. general economy, but it happens at the same time the farm economy is weakening.

The rate hike was largely anticipated and the Fed signaled that future increases will be slow and methodical.