Interest rates on loans continues to be high

OMAHA, N.E.(KELO)- The weather is one thing…farm operating expenses are another.

Creighton University Economist Ernie Goss says borrowing costs are making things challenging for farmers.

Farm commodity prices are holding strong, so that will help most farmers remain profitable.

Higher interest rates are also turning up the heat on regional farmers.

Goss says regional bankers are concerned about their farm customers.

But one thing they have in their favor is the market price of their goods.

Because of the higher commodity prices, Goss says bankers expect farm loan default rates to remain very low.

They say they’re trying to fine tune the economy and weed out inflation.

What that means to us as consumers is the likelihood of even higher interest rates.

The Federal Reserve Board held steady on rates this month, but Goss expects another round of rate hikes next month.

That can have a big impact on major purchases.

Half of the Fed Committee that sets interest rate policy expects to raise rates again in efforts to tame inflation.