Recent financial headlines will directly affect farm lending trends, yet farmers are still expected to pursue standard diligence methods in weighing bank lending costs and trends. Headlines included:
On 7.26.23, the Fed raised its benchmark lending rate to 5.5%, the highest level in 22 years.
On 8.1.23, Fitch Ratings downgraded the U.S. credit rating.
On 8.7.23, Moody’s downgraded 10 U.S. banks while warning of others to come.
The president of American Farm Mortgage and Financial Services urged farm business managers to pay more attention to what’s happening in the wider banking sector so as to protect their bottom lines, yet primarily through ‘pull tech’ means of scouring data on government websites.
However, this method remains very ‘Web 2.0,’ even for ‘low tech’ growers. How much better would be progressive digital tools which instead would provide ‘push’ means by customizing up-to-date farmer, lender and sector-specific data to planning-conscious subscribers? Especially given the further economic volatility approaching.