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.
Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.
February 13, 2026 08:00 AM
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RealAg Radio host Shaun Haney talks about the U.S. House’s latest vote to roll back tariffs on Canada and the ongoing discussions surrounding North American trade.
February 12, 2026 05:02 PM
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AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
February 12, 2026 04:26 PM
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Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
February 12, 2026 03:29 PM
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The USDA says the framework is about “ending abusive government overreach” and “protecting farmers, families, and private property.”
February 12, 2026 02:05 PM
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Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.
February 12, 2026 12:16 PM
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