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Variable interest rates the most vulnerable

An official with Farm Credit Mid-America says farmers with variable interest rates are the most vulnerable to a rate increase.

Matt Monteiro, VP of finance and treasurer of Farm Credit Mid-America says considering that the Fed is anticipating short term interest rates will increase later this year or in early 2016, farmers with variable rates would be impacted the most.

“So any farmers that are in that kind of situation where they have variable rate debt should consider locking it at this point because that opportunity won’t be around forever,” Monteiro said.

Monteiro says farmers with fixed rates would be insulated from any increase in interest rates on their current loans.

Audio: Matt Monteiro, VP of finance and treasurer, Farm Credit Mid-America