Mike Pearson gives us a glimpse into how interest rates are impacting the farm economy.
The Federal Reserve has increased interest rates 11 times since March 2022. This has caused higher costs for agriculture producers.
The latest increase in the interest rates came at the end of July when it was increased another quarter of a percent bringing the interest rate to between 5 1/4 to 5 1/2 percent. The federal reserve has already said to expect one more increase by the end of the year.
This leaves consumers– and farmers– paying between 7-9 percent for debt and it’s leaving a negative impact.
