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.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
December 04, 2025 10:43 AM
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Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
December 04, 2025 07:00 AM
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Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
December 03, 2025 06:52 PM
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Kip Eideberg with the Association of Equipment Manufacturers details its campaign spotlighting the people who build equipment vital to farming and food manufacturing.
December 03, 2025 03:24 PM
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Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
December 03, 2025 01:52 PM
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While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
December 03, 2025 01:36 PM
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