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
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.
Pasture, Rangeland and Forage (PRF) interval selection—not just participation—drives protection levels as rainfall patterns become less predictable across the South.
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
