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
Both imports and exports are moving through the Panama Canal at a slower pace as the ag industry continues to deal with drought-related restrictions.
Getting strange calls or texts from “Amazon” after placing holiday gift orders? In this AARP Live Minute, experts from AARP reveal three Amazon imposter scams to watch out for as you navigate the holiday season.
Shaun Haney, host of Rural Radio Channel 147’s Real Ag Radio, joined us Friday on Market Day Report with an update on the important vote involving the use of ag machinery in Canada.
The FAO Food Price Index for October 2023 is out. Where do global food prices stand, and which categories saw the largest gains?
Agriculture Accounting Expert Paul Neiffer joined us Friday on Market Day Report to take a further look.
