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Interest rates “a good deal” for farmers

A farm management educator says interest rates are the one input farmers are getting a good deal on.

Given the continued downturn in the farm economy, comparisons are being drawn to the farm crisis of the 1980’s.

During a forum featuring University of Minnesota staff addressing farm financial issues at FarmFest Thursday, Bob Craven says today’s economic environment is different.

“In the 80’s we went through a period where we had interest rates of almost 20 percent.  I always tell my banker, and she sort of chuckles, you’re the one input I have that’s really a deal right now.”

He says farmers are fortunate interest rates have stayed around four percent.

“They’ve been talking about interest rates going up now for three years.  My mother is a little crabby with me because I kept her short in her CD’s because I thought rates would go up.  Well, I’ve been wrong three years in a row.”

Craven is director of the Center for Farm Financial Management at the University of Minnesota.