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
Bigger-than-expected corn and wheat stocks are bearish for prices, while soybean figures were neutral. Farmers may face additional price pressure as harvest accelerates.
“MAKE SOYBEANS, AND OTHER ROW CROPS, GREAT AGAIN!”
Taiwan’s pledge to expand imports strengthens export prospects for U.S. row crops, livestock products, and specialty commodities, while the USDA’s broader trade push seeks to diversify farm markets globally.
Farmers will need to closely monitor forecasts if the regulatory changes are implemented, as temperature cutoffs will replace fixed spray dates.
Under this agreement, SCDA will administer a program covering infrastructure and timber losses, as well as future economic and market losses.
