Borrowing for Rising Production Costs Could Limit Farmers’ Equipment Spending

If 2013 farm production costs rise at the rates seen last year, U.S. farmers will need to take on more debt, which could curb spending on farm equipment in 2014. The Federal Reserve Bank of Kansas City reported in its July Agricultural Finance Databook newsletter that rising production costs prompted some agricultural producers to take on more debt.

Federal Reserve economists Nathan Kauffman and Maria Akers, said in the newsletter, “Rising production costs and larger…

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