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Inflation peak and what it means to farmers

A farm financial advisor believes inflation has peaked.

But Compeer Financial risk officer Bill Moore tells Brownfield that does not mean the Federal Reserve has it under control.

“I want to be clear that peaked and tamed don’t necessarily mean the same thing. So while inflation may not be increasing at the rate that it had been before, it is still very high.”

He says labor continues to be a primary factor.

“In fact, we’re seeing 5 to 7 percent increases in the cost of labor, and for many companies that represents as much as half of their cost of goods sold.”

Moore says that means further interest rate hikes are likely and that will affect short and long-term borrowing for farmers.

Moore made these comments during a What’s Happening podcast, a content partnership between Compeer Financial and Brownfield Ag News.