Farmers are encouraged to watch their borrowing as the likelihood of interest rate reductions in 2024 becomes less likely.
CoBank grains and oilseeds economist Tanner Ehmke says the Federal Reserve planned multiple rate cuts for this year, but inflation isn’t letting up.
“The Federal Reserve had to walk it back here recently and say ‘ya know, we’re going to be a little bit later on cutting interest rates than we had previously thought.’ And now I think the general thinking among most economists that I follow is that we’re not going to see a cut until December maybe.”
He tells Brownfield data from ag lenders shows the level of farmer borrowing is going up.
