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Fed’s rate pause could allow financing benefits

Farmers Business Network is encouraging farmers to reflect on financing options for next year following the Federal Reserve’s pause on interest rate hikes.

Kathy Bogardus tells Brownfield now might be the time to lock in next year’s input purchases or operating line of credit.

“It’s just a good opportunity for people to look at options while one—they could be saving money by taking advantage of these rates or the promotions that are going on, and two—just locking it in before the rates go even higher,” she says.

She says online banking can make the process simpler for farmers working through harvest.

“So you don’t have to take that time to get into the car, go to the bank and have these conversations,” she says.  “People are in the fields.  We understand at FBN time is precious, so having that online ability I think goes a long way.”

September was the first month since March of 2022 the Federal Reserve has kept interest rates steady, but rates are expected to increase again before the end of the year.