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.
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
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For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
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Nick Andersen, Nationwide’s VP of Agribusiness Claims, shares tips for managing weather-related risks in agriculture using their new Hail and Wind Alert Program.
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Culver’s Quality Manager Jim Krombach explains why it is vital for brands to invest in the next generation of agriculture through organizations like FFA.
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The American Farm Bureau Federation (AFBF) is urging Congress and the Trump Administration to act quickly on behalf of American agriculture.
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Escalating U.S.–China tensions threaten soybean demand as farm finances are stretched further.
October 13, 2025 10:40 AM
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