News

Interest rate boosts showing up on farm balance sheets

The Federal Reserve is keeping interest rates at a target range of 5.25% to 5.5% for the second month in a row and ag economists at the University of Missouri say the increased interest is starting to show up on farm balance sheets.

Ryan Milhollin tells Brownfield…

“We factor in a lending rate of 9% into our budgets for next year. Time will tell what the interest rates farmers will have for operating and ownership loans going forward.”

Joe Horner says producers with variable interest rate loans will be more sensitive to any changes.

“Particularly the longer-term loans. I think this will affect real estate investments and just a lot of buildings on the farm. We’ve taken long-term interest rates up significantly from where they’ve been the last few years.”

Brownfield interviewed Horner and Milhollin at the Ag Lender Seminar in mid-Missouri.