Increase in Interest Rates Affecting Operating Loans

November 16, 2018 02:19 PM

Agriculture leader Farmer Mac says interest rates are having an impact on operating loans. That's because most of those loans are on a variable rate.  Rising interest rates mean land may not be an attractive option for investors.  If the farm economy doesn't turn around soon, the fear is debt-to-asset ratios could rise to levels agriculture saw in the 1980s.  However, Farmer Mac economist Curt Covington says, that hasn't happened yet. Hear what he told us below:

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Read Farmer Mac's Fall Report here.

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