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
The spending bill keeps animal health and traceability funding in place while trimming several other USDA accounts.
New farm payment rules allow LLC members to have separate limits, but some local FSA offices are still applying outdated policies, creating confusion for producers.
March brought better prices for several commodities, but rising fuel and feed costs kept margins under pressure.
Farmers still earn only a small share of consumer food spending, even as post-farm costs continue to take most of the dollar.
Corn and cotton gave the strongest signals this week, while soybean demand remained softer than in the previous report.
Reliance on vegetable imports remains uneven, with domestic production still anchoring several major categories.
