Northland Community College Farm Business Management Instructor Betsy Jensen has seen farmers shy away from pre-paying for inputs this fall. Increased interest rates are causing producers to be more hesitant. “Most companies have not increased their pre-payment discount,” said Jensen. “The cost of the money is offsetting all of your tax savings.” Jensen also encourages farmers to use deferred contracts strategically. Splitting grain sales into a few contracts means you have an opportunity to correct mistakes on a contract-by-contract basis if needed. Click here for the full conversation with Betsy Jensen.
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