Proactively manage high interest rates

Farmers are encouraged to proactively manage high interest rates.

Barry Benson, VP of Agribusiness banking at Omaha-based FNBO, says persistent inflation is preventing the Federal Reserve from lowering rates, meaning ag producers will continue incurring higher operating costs for interest expenses.

“This will increase their overall break-evens, and in turn their profitability. So at FNBO we want to work with our customers to use as many money management programs and tools that they can keep their dollars working for them to limit their interest expenses, and overall return to profitability.”

He tells Brownfield the Fed seems to be focused on the relationship between inflation and unemployment.

“Inflation is still very strong, and although it is easing a bit it’s not where Chairman Powell would like to possibly see it before they start easing rates.”

Benson suggests several years of strong balance sheets has helped farmers cut down on interest expenses, although he says the level of borrowing is going up.

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