FDIC Supervisory Examiner Joe Koenigsman cautions farmers about rising interest rates and how bigger operations may face increasing risk over loans. “$2 million line of credit is pretty standard, anymore. We went from 4% to 10% on operating notes in a year’s time. It’s substantial. So, I think that’s going to be one of the biggest headwinds that I see is interest rates.” Koenigsman believes there are more tools available for managing risk than before and farmers should have the means to survive the downswing of this current cycle. “Back when we were doing the family farm there was no such thing as a cash-flow or cash-flow projection. There was no such thing as hedging practices, none of that.”
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