Economists on Interest Rates: “I wish we had a crystal ball to know what’s next”

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.

Related Stories
Austin Rice with Specialty Risk Insurance shares guidance on handling storm damage, navigating the insurance claims process, and managing risk during a volatile planting season.
Eric Weaver with UNL joins us to share about a promising new HPAI vaccine, early test results, next steps in development, and its potential impact on the livestock industry.
Lewis Williamson with HTS Commodities joins us to break down the latest USDA crop progress report, share insights from growers, and discuss how global factors are shaping planting decisions this season.
High input costs and persistant drought is pushing Midwest growers to rethink planting decisions.
Higher cow numbers and slightly stronger output per cow pushed milk production above last year.
Food inflation is still building in 2026, with beef leading pressure while eggs and dairy offer some relief.

LATEST STORIES BY THIS AUTHOR:

Total Equine, Total Feeds’ flagship product, is a feed for all ages of horses.
Optimize Yield and Profit Potential Next Year.
Bass Pro Shops Launches Outdoor Programming on RURAL RADIO. New weekly live show features interviews with the experts covering the latest information about fishing,
RURAL RADIO on SiriusXM Hosts the World’s Largest Parade of Pickup Trucks at the Iconic Home of the Indy 500
Join the founder of My Pillow, Mike Lindell, and learn about his new towel line and what makes them so unique.
Monty’s proprietary humic technology makes their product the most active and soluble available in the marketplace, and is formulated to the ideal humic to fulvic ratio to maximize yields and success.