The move by the Federal Reserve to increase short term interest rates by a quarter point should have only a minimal impact on agriculture. Nathan Kauffman is an economist with the Federal Reserve Bank of Kansas City. He says interest rates are still historically low, so at least for now the most recent bump should not dramatically increase the cost for producers to borrow money.

He says he’s not sure how many more rate increases are expected this year, but the economic indicators dictated this recent move.

Kauffman says generally an increase in interest rates does have an impact on the U.S. dollar, which can impact exports.

He says if the Fed continues to raise rates it could have a longer-term impact on land values and even cash rental rates.