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| I have a question in regards to interest rates and their effect on farmers, they are...
1. If interest rates increase, does this not also mean that carry in the futures markets increases as well or do I have this backwards? I always thought that interest rates factored in somehow, and if this is so, wont this mean that on farm storage will have an even greater benefit to farmers? (take a low interest comod. loan to cover costs until you actually deliver)
2. Would it be smart to take a low interest loan (FIXED RATE!) for something right now to preserve cash for future purchases when rates are higher?
3. What are some ways that you can be proactive to hedge yourself against higher rates if you already have fixed rate loans in place?
It seems inevitable that we are going to be faced with higher rates soon, so I appreciate any advice or thoughts on any of my questions, thanks
Edited by farmingsgood 2/2/2010 17:48
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Future Rates
