To combat inflation, the Federal Reserve raised interest rates 11 times between March 2022 and July 2023. As inflation has receded, expectations for rate cuts have not materialized.
2024 has been a difficult interest environment for farmers with rates steady and no interest rate cuts made by the halfway point of the year. In addition, the Federal Reserve opted to hold interest rates steady after its meeting in early June.
Dan English is the general manager of finance at Farmers Business Network and he says the Fed is not comfortable enough with the state of the economy to reduce rates yet.
English predicts that if rate cuts occur in 2024, they will be later in the year than anticipated.
He says the Fed wants more positive economic data before it feels comfortable to make rate cuts.
English says that FBN finance recently surpassed a big milestone in terms of loans extended to farmers.
He encourages farmers to take advantage of all avenues available to ensure they are locking in the best possible deal.
For more information visit https://www.fbn.com/financing
