Industry Insights

July update

Producers grapple with interest rate uncertainty.

In June, monthly farmer sentiment fell as decreasing commodity prices and interest rate concerns weighed on producers. The Federal Reserve is projected to implement only two rate cuts this year, rather than the initially anticipated three due to persistent higher-than-expected inflation. For producers, this translates to continued financial pressure from high interest rates and greater uncertainty. According to the Purdue University-CME Group Ag Economy Barometer, 23% of producers cite rising interest rates as their greatest concern. Simultaneously, food prices are up nearly 30% from five years ago. Tightening margins, coupled with interest rate concerns are creating a challenging environment for producers.

Industry insights

AgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.