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Watch interest costs

Interest can be a hidden cost farmers need to manage.

Joe Barker is with CHS Hedging.

“When I talk to farmers about marketing their crop, I try to remind them about the cost of money and what can happen to them on interest costs.”

He tells Brownfield recent data from the Federal Reserve Bank of Kansas City shows the average interest rate for an operating note is about 8.3 percent.

“That is significantly different than where we were just a year ago. So as they have their crop stored somewhere, especially if they’re paying storage, not only are they paying for storage but they’re losing that opportunity if they’re paying an operating note to have paid that off.”

Barker says there are opportunities for farmers to market their grain and pay off operating loans.