Most farmers will be able to get the credit they need for next year, but according to Ken Auer of the Farm Credit Council says it may come at a higher cost.
Although the Federal Reserve has lowered prime interest rates, the rates for farm loans through the Farm Credit system may be a little higher than last year.
"The price, it depends upon what we can get it at in Wall Street, and that's a bit of a different story," Auer says. "The price of credit coming out of Wall Street is higher than we'd like it to be. There is a lot of stress on Wall Street, there's a lot of new players that have entered the market, you've got the Federal budget deficit, and a lot of foreign players have moved out of the marketplace."
Auer says all those things are impacting on pricing. Farm Credit will probably have to increase rates, but Auer says that the availability will be there, which is the important things for farmers.