Quarterly reports on surveys of bankers in three Midwestern Federal Reserve Bank districts indicate that rising interest rates and low commodity prices may impact farmers’ decisions on making larger, long-term investments in the near future. Farm equipment dealers should take note of this trend, as higher interest rates for farmers mean they will be less willing, or able, to take out a loan for capital expenditures.
It’s not getting any easier for farmers to borrow funds for ongoing operations, let alone ag equipment. Farm lenders are taking a much closer look at crop producers’ loan status as concerns about repayment are starting to grow.
Amid ongoing weakness in commodity prices, Midwest and Mid-South farm income and quality farmland values continued to decline during the first quarter of 2016, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis (8th District) on May 12.
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There was plenty of technology on display at the World Dairy Expo in Madison, Wis., a few weeks ago. Farm Equipment editor Mike Lessiter caught up with Monarch Tractor’s John Issacson and got his take on the top 5 applications in autonomy right now.