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.
Disease risks remain a key factor to watch heading into fall.
September 18, 2025 03:07 PM
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American Farm Bureau Federation (AFBF) economist Danny Munch explains how the Emergency Livestock Relief Program application process differs from other USDA aid programs.
September 18, 2025 01:39 PM
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According to the National Council of Farmers Cooperatives (NCFC), President and CEO Chuck Conner says, there is only one other option besides addressing ag labor shortages.
September 18, 2025 01:10 PM
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For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.
September 18, 2025 11:37 AM
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The modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing for agriculture, giving some relief to producers under heavy debt loads.
September 18, 2025 10:29 AM
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Produce markets are in transition as fall approaches, with leafy greens and berries under pressure, while vegetables like celery, broccoli, and cauliflower are finding firmer ground.
September 17, 2025 04:07 PM
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