A central Illinois farmer says navigating interest rates could be one of the biggest challenges farmers face this year.
Grant Strom raises corn and soybeans about 40 miles west of Peoria. “If you’re having to do any operating on borrowing, those rates are double or more than what we’ve seen in the last 4 to 5 years,” he says. “That’s something we continue to monitor.”
He tells Brownfield while many farmers are in a better cash position because of higher commodity prices, the rising interest rates make large purchases like land more costly.
Strom says equipment prices have also been on the rise. “I don’t know if we’ve peaked in that market or not,” he says. “Trying to find replacement equipment, if you can find something good, is going to cost you quite a bit of money. That’s definitely another area causing higher expenses.”
Despite the challenges, he says crop input and part availability haven’t been an issue, which is a significant improvement over 2022.
