Several large-scale factors are taking their toll on the farming economy. Senior Analyst covering fruits and tree nuts for Rabo AgriFinance, David Magaña said that persistent inflation is one critical issue. Another factor impacting farmers and ranchers is elevated interest rates. Magaña explained that it is especially challenging when interest rates remain high for long periods of time.
“It doesn’t feel well when we come from a very low level of interest rates and how fast they have been increasing and the cost of much-needed capital to implement innovation, to bring efficiencies, and remain in the industry,” Magaña noted. “At the same time, we still are discussing consumers trading down because of this elevated inflation and still the possibility of a recession.”
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Brian German
Ag News Director / AgNet West