Journal Article

Interest Expenses on Farmland Debt Could Challenge Farm Profitability


Abstract: From 2021 through 2023, farmland values and then interest rates grew, raising interest expenses for crop producers. These higher interest expenses could considerably reduce returns for producers with high levels of land debt. These producers may need large cash down payments to reach profitability with new or refinanced debt.

Keywords: Farmland; Crop Production; Agricultural Producers; interest rates;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2024-02-14

Pages: 4