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.
Despite tariffs having a less significant impact on exports, corn producers struggle with tariff-related increases on inputs, which complicates their bottom line.
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Jack Daniel’s will end its Cow Feeder Program, which served around 100 livestock operations near the distillery, and redirect spent grains to its anaerobic digester.
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Software developers at John Deere Digital are addressing challenges with their new Operations Center, which helps farmers make decisions on the fly.
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Agricultural exports continue to be a key contributor to rural employment. However, rural businesses still struggle to fill numerous job openings.
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Farm debt is climbing to record levels at ag banks, reflecting pressure on crop producers’ finances even as livestock and land values lend stability to the sector.
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Consumer demand for regional food systems is strong, but the challenge lies in scaling production and infrastructure to meet that growing need.
October 03, 2025 02:57 PM
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