USDA estimates that farmers will spend more money on interest payments in 2026, after adjusting for inflation, than at any other time on record. Credit is an essential part of agriculture, helping farmers manage costs and invest in their operations. As borrowing costs rise, American Farm Bureau Economist Faith Parum said increased reliance on credit says a lot about the overall health of the farm economy.
Parum said credit can also offer clues about broader economic conditions in agriculture.
As producers face higher expenses and increased borrowing costs, Parum says there is a way Congress can help ease that financial strain.
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