Rising interest rates have a hold on most areas of the ag economy, but the least profitable producers have taken the biggest hit.
The Minneapolis Fed says producers in the ninth district have faced more expenses as a result of the current economy. That includes operations in Minnesota, Montana, and the Dakotas.
Right now, the district’s least profitable producers have higher debt per crop, and as rates go up, their cash flows are more sensitive. Those increased expenses could require them to get more funding because of less working capital.
The Fed estimates the least profitable farmers spend three times more on interest.
Related Stories
Soft equipment sales signal cautious farm spending as producers prioritize cash flow over expansion.
Wind repowering offers a rare opportunity to renegotiate outdated leases and improve long-term land income for landowners who act early.
Tight beef cow supplies and steady demand point to continued record-level cull cow prices in 2026.
A disciplined, breakeven-based marketing plan helps protect margins and reduce risk, even when markets remain unpredictable.
Roger McEowen with the Washburn University School of Law joined us to provide legal analysis on key cases shaping the agricultural landscape heading into the year ahead.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.
