Dr. Penson Feature
Higher interest rates and production costs are a central focus for farmers and ranchers right now as inflationary pressure is shrinking profit margins in an otherwise strong commodity market. Congressional hearings for the 2023 Farm Bill are ongoing and the outcome will heavily influence the course of our domestic food system for the next five years. Leaning into farmer input when creating these policies will be pertinent to their success. The historic trend of zero-base budgeting in past Farm Bills suggests that the allocation of funds will be no small task as lawmakers sift through competing priorities. Several more interest rate hikes are expected before the year is over, indicating now is a good time to reassess debt obligations and restructure as needed to secure a safety net of operating capital to hedge against the economic uncertainty ahead.
Higher interest rates and production costs are a central focus for farmers and ranchers as inflationary pressure is shrinking profit margins in an otherwise strong commodity market. Congressional hearings for the 2023 Farm Bill are ongoing and will heavily influence the course of our domestic food system for the next five years. Several more interest rate hikes are expected before the year is over, indicating now is a good time to reassess debt obligations and restructure as needed to secure a safety net of operating capital to hedge against the economic uncertainty ahead.
Dr. John B. Penson, Jr., Chief Economist
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