Sen. Marshall: Farmers are taking on thousands in debt over interest rate hikes
Senator Roger Marshall breaks down the effects of rising interest rates as the cost of doing business on a farm rises also.
Senator Roger Marshall of Kansas says farmers will feel the effects of boosted interest rates.
He says it is not unheard of for a farmer in his state to hold operating loans of $1 million or more. He told Scott Shellady on Cow Guy Close that the interest on a loan like that can tack on $30,000 or more. All this, he says, will result in higher costs at the grocery store.
“Inflation is still the number one concern that they talk about, the fact that nitrogen fertilizers are of course quadrupled. Beyond that, they want to talk about labor issues, that they don’t have enough workers for the farm right now; that we have rail problems as well and like many parts of the country, Kansas has a significant drought going on. So all of these are driving up the cost of producing groceries for American families and really the world,” said Sen. Marshall.
Marshall expects further interest rate hikes and is fearful it could lower demand in the agriculture sector.