Interest rates to farmers up 1.5% since end of 2015


The latest quarterly report by the Federal Reserve shows ag bankers are slowly raising interest rates on operating loans to farmers.

Lenders charged an average rate of nearly 5 percent this spring, up from 3.5 percent during the final quarter of 2015 when rates were at historical lows.

For a corn farmer borrowing $500 dollars to cover input costs for the upcoming growing season, University of Minnesota Extension ag business management instructor David Bau (bow) estimates the one and-a-half percent rate hike equals a per-acre increase of nearly $6 dollars.

Continue reading Interest rates to farmers up 1.5% since end of 2015 at Brownfield Ag News.