The Federal Open Market Committee raised interest rates another quarter point, the first interest rate increase in three years. NDSU Farm Management Specialist Bryon Parman said interest rates have effectively doubled in the past few years. “We came off a period where we had really low rates for a long period of time, so a lot of businesses, not just producers in agriculture, made decisions as if that’s the environment going forward,” said Parman. “Then when they increase and double, you’ve got to change your thought process and decision-making. All of a sudden, interest matters now.” Parman said higher rates are particularly challenging for producers considering debt restructuring because refinancing now happens at significantly higher rates than a few years ago. Watch the forum.
