Farming success is all about the long game
Farmers aren’t anything if not adaptable. Whether it's crop yields, commodity prices or economic uncertainty, they are keenly aware of the impacts of their environment, financial or otherwise.
Market uncertainty – including an increase in international tariffs – is something farmers may want to pay close attention to, so they can act if the price is right to lock in a futures contract. Livestock producers can also take advantage of Livestock Risk Protection to take advantage of pricing.
Besides tariffs, the federal government has announced a couple of recent developments that they may want to be aware of.
USDA opens ECAP applications
To help agricultural producers mitigate the impacts of increased input costs and falling commodity prices, the U.S. Department of Agriculture is issuing up to $10 billion to ag producers through the Emergency Commodity Assistance Program (ECAP) for the 2024 crop year.
USDA has vowed to streamline the application process and accelerate payments to help farmers manage expenses and secure financing for their operations.
Applicants can visit fsa.usda.gov/ecap to apply using a login.gov account or contact their local Farm Service Agency office to request an application between now and Aug. 15.
Interest rates to remain the same for now
On March 20, the Federal Open Market Committee (FOMC) decided to keep the fed funds target range steady at 4.25% to 4.50%. The committee did not change their current monetary policy stance and remains committed to a 2.0% inflation target. They also stated that the economy continues to grow at a strong pace and that the unemployment rate has remained low and stable.
What this means for Capital Farm Credit member borrowers and prospective customers is that CFC’s ability to offer rate products across the entire yield curve provides a significant competitive advantage and offers customers the comfort of borrowing money at a fixed rate for a longer term.
“The flattened yield curve means better fixed rate opportunities further out into time,” said Clint Cryer, senior vice president of lending. “Capital Farm Credit’s ability to offer rate products along the whole yield curve could be advantageous for farmers looking to start, grow or expand their operations.”
For more than 100 years, Capital Farm Credit has supported rural communities and agriculture with reliable, consistent credit and financial services, including loans, leasing and insurance.
Headquartered in College Station, Texas, Capital Farm Credit has offices serving 192 of Texas’ 254 counties. For more information, call or visit a CFC office near you!