By Katie Dehlinger
DTN Farm Business Editor
MOUNT JULIET, Tenn. (DTN) — The rush to safer investments amid the COVID-19 pandemic has pushed the 10-year Treasury rate down by about a percent over the past few months, providing farmers and ranchers with the opportunity to refinance at very low interest rates.
The 10-year Treasury rate is what lenders use to establish interest rates on long-term loans, and Farm Credit Services of America Chief Credit Officer Tim Koch told DTN it presents an opportunity to not only lower your rates, but also to extend your amortization periods.
?We’re at a point I don’t think most of us have ever seen on the 10-year Treasury, so long-term rates that we’re quoting people on real estate loans are as low as — I always struggle to say ever — but certainly in recent memory,? he said.
Brian Philpot, CEO of ag real estate lender Ag America, said it’s one of the only good things amid the current pandemic.
