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.
Corn and wheat exports remain supportive, but weaker soybean demand — especially from China — continues to pressure oilseed markets.
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China’s pullback is hitting core U.S. commodities hard, reshaping export expectations for soybeans, cotton, grains, and livestock.
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Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.
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Plans are underway for the 27th annual Great Eastern Iowa Tractorcade, a June event celebrating farm heritage, tractor history, and rural traditions. Event manager Matt Kenney joins us to highlight the importance of commemorating farm heritage.
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Fertilizer markets face uncertainty after President Trump raised the possibility of tariffs on Canadian imports, with analysts warning of supply and pricing risks. Josh Linville with StoneX provides a fertilizer industry outlook.
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