Interest Rates An Increasing Factor In Farm Finances

The Federal Reserve’s decision last week to leave interest rates unchanged into the new year has farmers and bankers catching their breath after a year that’s seen the base rate rise to a 22-year high.  David Widmar, co-founder of Agricultural Economic Insights, notes that the Fed’s tactics to combat inflation are shifting.

Widmar says two years of interest rate hikes are beginning to show in farmland values.

The Federal Reserve’s target federal funds rate remains between 5.25 and 5.5 percent, with the last increase occurring in late July.