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Low interest rates continue to provide opportunities

Relatively low interest rates continue to influence farm purchases.

Compeer Financial chief risk officer Bill Moore says rates remain attractive as income levels improve.

“There are certainly opportunities with the commodity prices today, government payments that we’ve seen, for either equipment purchases or land purchases. So how do you balance the right approach when managing your interest rates?”

He tells Brownfield because longer term rates are rising while shorter term rates stay low, a split rate transaction might be a good move.

“You could execute say, a land purchase transaction where part of your note is on a five- year adjustable, and part of it is on a 30-year fixed. That really allows you to sort of play the market and help balance the absolute level of interest rates that you are paying.”

Moore says Compeer is working with clients to help them diversify their risk between short, medium, and longer-term loans.

Moore made these comments during a recent Compeer Financial podcast.