Special Report

Lock-in these interest rates

Now is the time for dairy producers to lock-in long-term interest rates. Gary Sipiorski is Dairy Development Manager with Vita Plus and a member of the Advisory Council for the Federal Reserve Bank of Chicago. He says interest rates are not going to get any lower and most likely will move higher in the months to come. “The Feds have said they were going to stop buying as many treasuries and mortgage-back securities so we are seeing rates respond.” He notes that while the Fed has not done so as of yet, “we’re up a full percentage from where we were back in April.” In fact, he suspects the Fed may continue the current policy through the Christmas season and Ben Bernanke’s retirement as Fed chairman.

One of the big questions in agriculture; are current land prices legitimate or a bubble? Sipiorski thinks we are going to see a decline in farm income resulting in a leveling-off of land prices.

AUDIO:Sipiorski talks financials 7:07 mp3