The Return of Interest?

Interest rates as a percentage of annual agricultural expenses have continued to decline reaching a low of 2.4% for U.S. farms.  This marks a decrease of nearly 56% in interest’s contribution to total agricultural expenses since 2002 when, on average, interest accounted for 5.4% of total operating costs. This is due in part to the fact that input costs such as seed, chemicals, fuel, ect. have risen swiftly, and high commodity prices have allowed greater percentages of new land and equipment purchases to be paid for with cash. Continue reading “The Return of Interest?”