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
Persistently low Mississippi River levels are turning logistics challenges into pricing risks — tightening margins for grain producers and exporters across the heartland.
A rescheduled WASDE, China’s soybean squeeze, barge bottlenecks, and premium beef demand all collide this week — with cash decisions, basis, and risk plans on the line.
America’s love for burgers depends on open markets. Without lean beef imports, prices would skyrocket, crushing demand and destabilizing the beef industry.
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
