Borrowing costs are at the top of farmers’ minds as they get ready to plant for the year.
Fed Chair Jerome Powell left interest rates unchanged last week. Economists say it is anyone’s guess where the year will go, but warn you need to be prepared.
“I wish we had a crystal ball to know what’s next, and I would say that what you don’t want to do is just cross your fingers and hope interest rates keep falling. Not doing anything is just as risky as taking an all-in position either way. So what we’ve seen a lot of people do is somewhere meet in the middle where they try to get to a risk rate neutral stance where half the debts floating, half the debts fixed. If rates go up, great, you have protection in place. If rates keep falling, great, half the debt keeps on floating down lower, too,” said Josh Cannington with StoneX.
Carrington says it is important to make use of market tools, like swap options, which could allow farmers to choose which risks they want to take.
Tim and Sharyn Abbott of the Music City Celebration Sale preview the weekend’s premier auction, drawing breeders to Nashville again this year.
December 12, 2025 04:27 PM
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“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.
December 12, 2025 03:32 PM
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CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.
December 12, 2025 12:42 PM
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Plan for sharp, short-term volatility after unexpected outages; permanent closures rarely trigger major price spread disruptions.
December 12, 2025 12:25 PM
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Ethanol output softened, but underlying supply-and-demand trends indicate stable longer-term use despite short-term volatility in blending and exports.
December 12, 2025 11:47 AM
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Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
December 12, 2025 11:42 AM
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