 |
| CLICK HERE TO VIEW CURRENT ISSUE |
 |
| Best of NAMA 2026 |
|
 |
|
PURDUE EXPERT: IRAN CONFLICT COULD DRIVE HIGHER INTEREST RATES, SQUEEZE FARM MARGINS
Apr. 15, 2026
BrownfieldAgNews reports:
An ag economist says the conflict in the Middle East could lead to a rise in interest rates over the next year.
Michael Langemeier says uncertainty is impacting ag lending.
"If we see some inflation pressure in the next few months, that would mean that the rates could go up a little bit," he says. "But, if we see a spur in the economy, rates could go down a little bit."
He says nearly 40 percent of respondents in this month's Ag Economy Barometer survey expect inflation to rise above three percent.
"Producers are not necessarily worried that we're going to see an increase in all inputs," he says. "The increase in inputs will focus on the items directly tied to the Iranian conflict. I think it indicates that people are worried about where input costs might be going."
Langemeier says higher interest rates could increase borrowing and further squeeze margins for farmers.
The Barometer is a nationwide measure of the health of the U.S. agricultural economy and surveys 400 agricultural producers on economic sentiment each month.
|
|
|
|
|
