Fed Rate Debate Creates Uncertainty for Agriculture

A recent Federal Reserve meeting has left farmers and ranchers uncertain about future interest rates, which could impact their operations.

Tommy Grisafi with Ag Bull Trading says this uncertainty is affecting the ag economy. 'Interest rates are exploding,' he explained. 'We had a Fed meeting, we have a new Fed Chair Warsh. The bond market exploded higher which means yields exploded higher and the bond market went down.'

Grisafi notes that three Federal Reserve governors dissented from keeping interest rates at their current range. This dissent suggests there is a possibility of higher interest rates in the future, which would be challenging for farmers who are already facing high input prices.