Speaking at the North Dakota Grain Dealers Association Convention, CoBank economist Will Secor said interest rates have stabilized. The Federal Reserve Bank’s decision to pause interest rate hikes is called beneficial. “That will keep the costs of borrowing flat for the farmer and for the elevator, it will keep the cost of storage from increasing.” Secor offered a positive message about exports. “When you get outside of the U.S.-China trade dispute, we have seen some really strong export growth to Southeast Asia and the EU.” With a tight farm economy, Secor said the account receivable risk is increasing for grain elevators. There is also a trend toward larger farms, which will also impact the grain elevator business.
