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.
The report shows that, despite production challenges, dairy farmers are producing more milk with fewer resources per gallon across the industry.
December 23, 2025 12:45 PM
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Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.
December 23, 2025 12:12 PM
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Higher yields are cushioning lower acreage, but reduced production could support firmer potato prices into 2026.
December 23, 2025 11:22 AM
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Producers across the country balanced winter weather disruptions, shifting export demand, and tightening margins as year-end decisions come into focus.
December 22, 2025 03:50 PM
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Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
December 22, 2025 03:19 PM
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Canada’s new voluntary Grocery Sector Code of Conduct will take effect on Jan. 1, a goodwill effort to promote fairness and transparency between retailers and support farms that sell directly to stores.
December 22, 2025 02:54 PM
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