Looking ahead, Federal Reserve Bank of Kansas City Senior Vice President Nate Kauffman sees farm profit margins tightening. This scenario is happening after a time of strong profitability. “They’re in a good position to be able to withstand some of the pressures.” Kauffman says the Fed is looking for signs that inflation is nearing its target of two percent before ending interest rate increases. “Increases in rates are a challenge for a lot of businesses that need to contend with financing costs.” Kaufman addressed the North Dakota Bankers Association Ag Credit Conference.
