Brownfield Ag News: “Interest rate adjustments expected at challenging time for ag”

The chief economist at Farmer Mac says there should be immediate relief for production credits when the Federal Reserve lowers interest rates.

Jackson Takach says the cost of production credits should decline 1:1.

“We see over the course of the next 24 months there’s an expectation of almost 200 basis points of cuts in short-term interest rates.”

He says that’s good news for agriculture, because the average interest rate on the farm has increased considerably in the last two years.

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