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KC Fed economist not seeing many parallels to 1980’s farm crisis

The rapid rise in interest rates is drawing comparisons to the 1980’s farm crisis.

Nate Kauffman with the Kansas City Federal Reserve says it’s on the minds of many producers.

“We do get that question a lot as there’s the potential for increases in rates, and as you start to see some challenges in certain parts of the economy. And especially as it relates to agriculture.”

But he tells Brownfield interest rates have a long way to go compared to where they were in the 80’s.

“And I would say that financially, producers are in a much stronger position. Exports have still been strong this year, incomes have been high. So I think again, producers are really in a good financial position going into next year.”

Kauffman says he will be watching to see if higher interest rates begin to weaken the farmland market.

Brownfield interviewed Kauffman at the end of November.