Rising interest rates are sure to have an impact on the agriculture industry, and the current situation is not normal.
Demand remains strong despite high commodity prices, and USDA Chief Economist Seth Meyer tells us what he thinks will happen.
“Rising interest rates in the U.S. strengthen the dollar, which makes us a little less export competitive. If you’re a producer, the thing you’re instantly going to see is if you’re gonna go and borrow, you’re gonna see the rate increase. If the consensus is right, that rate will continue to increase throughout the year.
When it comes to land values and farm income, Meyer says he does not want to make any concrete predictions as it is really too early to tell for sure.
For a further perspective on farmland values, top prices for good crop ground is fetching up to $25,000 per acre in Illinois and Iowa. That leaves many speculating over what to expect this summer.
Farmers National Company’s Randy Dickhut spoke with RFD-TV’s own Janet Adkison about how the top prices vary from a regional standpoint, what the best ways to sell good cropland in the current market is, what the big factors he is watching as we enter into the summer months, and any advice for producers.
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Related:
Economy Concerns: Interest rates are seeing the biggest hike in two decades
What Is Driving the Jump in Farmland Values?
Farmland Values Continue to Rise
