Inflation threatens to squeeze farmers
The chief risk officer for Compeer Financial is concerned about the squeeze on farmers if inflation cannot be tamed.
Bill Moore tells Brownfield at some point there will be pushback to how much retailers try to inflate their own bottom line.
“And pass those on to consumers versus trying to push it back through the supply chain. And as farmers know, we tend to buy at retail and sell at wholesale, so that squeeze always takes place.”
One way the government can temper inflation is by raising interest rates, and Moore says the Federal Reserve has indicated there will be as many as eight increases over the next year and-a-half.
“We could see the short-term rate go from 25 basis points to something closer to 3 percent between now and the end of 2023 or mid-2024.”
Given that trajectory, Moore says now would be a good time to lock in long-term interest rates.
Moore made these comments during a recent Brownfield content partnership podcast with Compeer.