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.
Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
September 30, 2025 04:12 PM
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Sergio Bortolozzo, President of the Brazilian Rural Society, discusses the importance of global collaboration and innovation in empowering women in the agricultural sector.
September 30, 2025 03:35 PM
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Malone, Senior Director of Trade Execution at Bunge, emphasized the importance of spaces where women can engage in meaningful conversations about global trade, supply chains, and leadership opportunities.
September 30, 2025 03:16 PM
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Gov. Gavin Newsom has until October 12 to sign a bill passed by the California state legislature allowing E15 sales.
September 30, 2025 12:59 PM
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Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
September 30, 2025 10:45 AM
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The USDA’s August Cold Storage report shows shifting stock levels across major dairy, meat, and poultry products.
September 29, 2025 06:21 PM
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