rates

Interest rates for farm loans were on the rise this year and look to continue to rise heading into 2023.

Nate Kauffman serves as the Omaha branch executive for the Federal Reserve Bank of Kansas City.  He says there are some things producers should keep in mind as they head into next year.

"As producers are going through loan renewal season and identifying risks might be going into next year, being aware of how the level of debt that they might be taking on, even if it is for good opportunities and new investments, is ultimately positioning them in a place where they’re going to have to service that debt at a higher cost.”

This isn’t the first time rates have caused some concern, as interest rates played a big role to the farm crisis in the 1980s. He says interest rates still have a long way to go to reach levels seen then.

"Financially, producers are in a much stronger position.  Exports have been strong and incomes have been high, however, they also realize there still could be some additional stress."

Kauffman says that it will be important for farmers to meet with lenders more frequently to discuss what plans may be heading into next season.

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