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.
Mexico and Canada remain critical buyers for U.S. corn, pork, dairy, beef, wheat, and other products.
U.S. consumers are still reaching for beef even though the country now produces more pork than beef.
As cattle producers continue to navigate labor constraints and rising production demands, innovation in handling systems will remain a key driver of the industry’s long-term efficiency and safety goals.
Suzanne Fanning with Dairy Farmers of Wisconsin joined us to discuss the “Born to Dairy” campaign, dairy promotion efforts in Wisconsin, and the economic role of the state’s dairy industry during National Dairy Month.
Laura Priest with the Center for Rural Affairs joins us to discuss solar development trends and opportunities for agriculture and renewable energy production to coexist.
Kansas farmer and friend of RFD-TV John Jenkinson joins us to discuss wheat crop conditions, regional variability, producer financial concerns, and the outlook for the growing season across Kansas.
