Increase in Interest Rates Affecting Operating Loans
AgWeb Powered by Farm Journal
By: AgWeb Guest Editor
Agriculture leader Farmer Mac says interest rates are having an impact on operating loans. That’s because most of those loans are on a variable rate. Rising interest rates mean land may not be an attractive option for investors. If the farm economy doesn’t turn around soon, the fear is debt-to-asset ratios could rise to levels agriculture saw in the 1980s. However, Farmer Mac economist Curt Covington says, that hasn’t happened yet. Hear what he told us below:
For more information, you can sign up for the latest edition of Farmer Mac’s “The Feed”. Sign up here.
To view the full article and listen to what Covington had to say: CLICK HERE