Higher interest rates limiting ag industry
An ag economist says rate hikes from the Federal Reserve are not likely over.
Tanner Ehmke with CoBank tells Brownfield the higher rates have impacted export demand.
“Our exports have really slowed down across the board because of that very strong dollar,” he says. “I think going forward, as long as we’ve got this strong dollar, we’re going to have a headwind for export programs.”
He says while global exports have faced some challenges, strong domestic demand for grains and oilseeds has been positive for crop farmers.
“To feed the growing need for renewable diesel, crush margins are very strong, or processor margins are very strong for ethanol plants,” he says.
Ehmke says the pressure of upcoming elections could help slow rate increases because the Fed tries to remain nonpartisan.