Historically low interest rates are expected to climb in the next year as farmers continue to deal with low commodity prices. David Lynn is Senior Vice President for Financial Services at Farm Credit Mid-America and says, “since the feds got out of the bond-buying business as we note; and everything that we see would indicate, at least within the next 12 to 18 months, interest rates are probably going to rise before the year is out.”
Lynn tells Brownfield there are several things farmers can do when penciling out their break-evens, saying “Number one is know your input cost. During the marketing year there will be opportunities to market and lock in prices that would be at break-even or better.” Lynn adds, “Secondly, we encourage producers to be familiar with what the operating terms of their input loans are, as well as IT and long-term business they may have.”
Lynn says now is a great time to lock in those lower rates while you still can.
By: Mark Dorenkamp
Source: Brownfield Ag News