A new report shows the top concern facing ag lenders heading into next year is interest rates.
The Ag Lender Survey shows nearly half of those who responded ranked interest rate volatility as number one, which is up 35.5 percentage points from last year. It shows interest rates have boosted bank net interest margins, but fears of weakening loan demand and strong competition are expected to cut into yields.
Most lenders surveyed say farm profitability increased over the last year but it still remains below the prior average.
Related Stories
Four Illinois farmland tracts sold for a combined $4.1 million, with per-acre prices reaching up to $14,000 in recent Midwest auctions.
Lawmakers from Texas and Tennessee outline priorities for USMCA renegotiations, focusing on tariffs, China trade concerns, beef prices, and stability for U.S. agriculture.
Adequate transportation capacity exists, but fuel costs and soft river demand could widen basis risk.
Lower oil prices may trim input costs but pressure biofuel demand.
Tight storage could widen basis and limit marketing flexibility.
Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
