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.
A new study by the National Grains and Feeds Association found that their industry generates $401.7 billion in economic output and supports over 1.16 million jobs nationwide.
September 24, 2025 02:41 PM
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Farmers should anticipate continued upward pressure on farm labor costs and monitor policy changes that may further impact hiring decisions.
September 24, 2025 01:01 PM
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Cotton farmers should weigh potential PLC payments against STAX coverage and act before the September 30 deadline.
September 24, 2025 12:57 PM
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Argentina hopes to boost demand, but critics see the move as a blow to American farmers.
September 24, 2025 11:35 AM
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Kevin Charleston with Specialty Risk Insurance joined us Tuesday to share his perspective on farm safety and risk management during fall harvest.
September 23, 2025 04:33 PM
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China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.
September 23, 2025 01:21 PM
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