2025 ECONOMIC OUTLOOK
Derek Skala, Vice President of Credit, Risk, and Business Development
Welcome to 2025! In 2024, agricultural lending increased compared to 2023. They expect similar results for 2025 due to tighter operating margins and an increased demand for credit. Cost of inputs, reduced markets, labor, interest rates, insurance, and overall inflation are some of the expenses that can contribute to this. Although the cost of inputs has reduced, so have the crop prices, leaving producers looking at different ways to increase margins. Whether it's no-till/cover crop, looking into carbon credit programs, diversifying the operation to mitigate risk, or utilizing technology – there are still ways you can increase your margin in 2025. One likely positive outlook is that the Federal Funds rate has a target range of 3.75 – 4.00% in 2025. The most recent projections suggest constant unemployment rates and a decrease in inflation, which could be conditions for future rate declines into 2026. With the economic uncertainties in 2025, CFS is here to help. We can help to vet any possible carbon credit programs, find methods to diversify your operation, understand cover crops, or we can assist with financing options that could provide more attractive interest rates. If we've learned anything in the last few years, it's that the outlook is a probability, but who really knows what the future holds? Either way, CFS is here for you – thick or thin.
Made with FlippingBook - Online magazine maker