DTN/The Progressive Farmer: Agriculture Markets, News and Weather

Farm Finance Features


Klinefelter: By the Numbers 12/13/11
Why High-Growth Farms Hit Credit Limits
Farm operations with high speed expansion can stress their own working capital and other ratios. They also pose regulatory issues for their lenders. (U.S. Navy photo by Mark Piggott) Faster isn't necessarily better. The race to expand may throw your financial ratios out of kilter and threaten your welcome at the bank. Here's why.

Farm Finance Outlook 1/9/12
Debt-Free or Bust: Farmers Aim to Reduce Debts
In recent years, farmers loaded up on farm equipment and capital improvements as tax write-offs during profitable years, but this year farmers are making efforts to downsize their debt loads instead. (DTN photo by Elaine Shein) Interest rates may be at 50-year lows, but farmers are bulletproofing themselves by downsizing debt and rebuilding their financial reserves.

Farmers Retire Debt 1/26/12
Prosperity a Blow to Ag Banks
Farm prosperity meant farmers had the funds to push many land values up 20% to 40% last year, but now many operators are also retiring debts, the Federal Reserve said. (Graphic courtesy of the Federal Reserve) Farmers pre-paid operating expenses from cash and slashed short-term credit at ag banks by 40% last year.

Cash Rent Defense 11/14/11
Flex Rents Moderated Risk, But Upped Ante in 2011
Iowa farmer Terry Jones preferred to pay landowners a bonus rather than opt for a flex lease agreement. (DTN/The Progressive Farmer photo by Jim Patrico) Stiff competition means higher and higher cash rental rates. Variable leases take the guesswork out of what's fair, but paid landlords a premium this year.

Ag Interest Rate Snapshot

Fri Feb 3, 2012 07:40 AM CST

DTN Ag Interest Rate Snapshot
	TODAY	- LAST WEEK
as of:	2/3/12	1/27/12
REAL ESTATE
5-Year Adjustable	3.05	3.20
15-Year Fixed	3.95	4.15
20-Year Fixed	4.35	4.55
10-Yr. Treasury	1.92	1.95
OPERATING
Libor Indexed	3.50	3.50
1-Year Adjustable	3.66	3.66
Variable	3.60	3.60
Prime Rate	3.25	3.25
CCC Loan Rate	1.125	1.125

Until the Federal Reserve reverses course, both long- and short-term farm interest rates remain at historic lows.

Interest rates presented by Farm Credit Services of Mid-America serving farmers in Kentucky, Ohio, Indiana and Tennessee. Rates change daily, are subject to qualifying conditions and may carry pre-payment restrictions. For details, visit : www.e-farmcredit.com.