How a Farm Management Information System Helps Farmers Beat Inflation

▤ Summary

• The Inflation Reduction Act (IRA) provides $3.1 billion for the USDA to relieve distressed borrowers with Farm Service Agency loans (direct and guaranteed). What moving margins can farmers expect to encounter based on inflation trends affecting their operating costs and the prices they can sell their goods for? On the other hand, an increase in property values may make it more difficult and costly for a farm owner to grow their acreage in preparation for a business expansion following a successful quarter. Additionally, as noted by Market Intel, “higher interest rates tend to lower property values, including farmland values, which would worsen the debt trap of higher interest rates and lower farm returns.” This will make new mortgages and business loans more costly to acquire over time—which may contribute to shrinking profit margins in the future. However, this may be offset somewhat by noted trends towards increased domestic consumption of corn, soybeans, wheat, and cotton and a projected record-level rise in beef, pork, and chicken exports by 2032 (Source: USDA Economic Research Service).

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