Higher interest costs are adding pressure to the farm economy. American Farm Bureau Federation economist Faith Parum says access to credit remains essential because of the amount of money farmers need before a crop generates income. “Farming is obviously a very expensive industry,” Parum said. “It takes a lot of money to put a crop in the ground and takes a while for farmers to get that money back and sell it in the marketplace.” Parum says using credit does not necessarily mean a farm is in financial trouble, but rising debt and interest expenses are concerns. She says improving access to credit through the farm bill could help farmers manage higher production costs.
