Warm weather greeted day 2 farmers visiting the largest indoor farm show in America. As usual in Louisville Kentucky there is plenty of large equipment on display at the National Farm Machinery Show, and everyone from the farmers to the ladies and kids is climbing up and checking it out. But is there much interest in new equipment purchases?
Eric Hess is a financial services officer for Farm Credit Mid-America and he says farmers are buying equipment and many other things.
“Farmers have been pretty active all across the board. With the 179 depreciation there have been quite a few equipment purchases go through that some guys may not have done otherwise without the tax advantage that the 179 depreciation offered. Land purchases have been fairly brisk when they can be found. The amount of land on the market hasn’t been quite what the farmers would like for it to be but there is quite a bit of interest in land right now.”
Hess says what is of concern is the cost in the future to finance those equipment and land purchases.
“We’ve seen on a lot of peoples’ minds concern about future interest rates, what they might do and when we might see those creep up a little. There is also concern about rising cost of equipment, land and other inputs as well.”
Hess doesn’t have an interest rate crystal ball, “but what I can tell you is that we’re at what I believe are 70 year lows in fixed interest rate markets and if I were a producer that had much debt against land or equipment right now, I would definitely be looking to fix some longer term interest rate.”
Farm Credit Services offers help for just about anything a farmer might need and Hess details that and the information a farmer needs to provide them with in the HAT interview:Eric Hess Farm Credit MidAmerica