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Equipment supplier says interest rates aren’t helping ease supply chain issues

An equipment supplier in Kansas says rising interest rates could cause more disruptions to the supply chain.

Brian Sieker with New Ag Supply tells Brownfield rate hikes have put pressure on the amount of inventory businesses carry on hand. “Most suppliers want to build that inventory.  They want to supply their customers.  They don’t want someone to be short, but they’re probably also working off a loan, and you’ve got to bring some things in check.”

He says demand, for now, remains strong. “I for see things staying pretty steady as far as that goes.  That’s going to create it’s own set of challenges down the road when things flip.  We could see a slow down in ag soon.”

Sieker, who also farms in the central area of the state, says he’s having to purchase and stockpile parts six to eight months in advance. “Watching some of my customers and what they’re mind set is and watching the market reminds me to be doing the same kind of thing.  Supply and stuff on hold you have to hold on hand just takes proper planning.”

Speaking with Brownfield at the Nebraska Ag Expo, he says part shortages have eased.