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.
Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a
December 10, 2025 11:56 AM
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Stable U.S. fundamentals continue for major crops, but global adjustments in corn, soybeans, wheat, and cotton may influence early-2026 pricing.
December 10, 2025 10:31 AM
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Corn and wheat exports continue to outperform last year, while soybeans show steady but subdued movement compared to 2024.
December 09, 2025 12:14 PM
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Tariff relief and new trade agreements may temper food costs by reducing import costs.
December 09, 2025 11:55 AM
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Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
December 09, 2025 11:41 AM
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Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.
December 09, 2025 07:00 AM
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