Farmer Mac sees agricultural credit stress rising gradually
AGM•Farmer Mac’s October 22 market assessment says agricultural credit stress is rising gradually, while farm equity and land values remain stable in most regions. It warns that refinancing low-rate COVID-era farm loans could double interest rates and threaten cash flow and business viability.
1. Farm credit conditions
Farmer Mac’s market assessment says agricultural credit stress is rising gradually, while farm equity and land values remain stable in most regions. Refinancing low-interest-rate COVID-era agricultural loans could double interest rates, threatening cash flow and business viability.
2. Broader market risks
The assessment says persistently elevated borrowing costs are being pressured by inflation, federal debt and AI investment. Mortgage rates around 7% are limiting housing affordability, and a stock market decline of 20% lasting more than six months or a spike in Treasury yields could trigger stagflation.
