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The State of Farm Loan Interest Rates in 2022

These underlying farmland valuation increases continue to keep the ag economy strong for landowners.

Farm Loan Interest Rates 

Farm loan interest rates experienced an increase in Q3 and Q4 of 2022. Despite this, farmland values are stronger than ever. Due to strong commodity prices, farmers were disregarding high interest rates and rising farmland valuations, and demand for farmland increased. Cash rents also increased, and farm net income gains remained strong.  

These underlying farmland valuation increases continue to keep the ag economy strong for landowners.   

Those looking to purchase land in 2023 may face rising interest rates, as well as having to contend with historic inflation and a competitive market. For many, purchasing a farm is becoming prohibitively expensive.

In this environment, would-be landowners must take advantage of every available resource and do their research to ensure they not only find the right property, but the right interest rate. 

Having a competitive interest rate may seem like the most important aspect of a loan, but buyers also need to consider the structure of their debt. It is important to work closely with a lender that understands the ag lending space. An ag lender will better understand the specific needs and overhead farmers have.  

AFF digital loan system generates a farm loan rate immediately after the online application, eliminating any hassle and wait time usually associated with a loan application. Once you have your number, AFF’s live team is ready to review your options with you.  

Apply for a farm loan online today for immediate approval or denial along with an interest rate. 

(Sources) 

Farm Loan Affordability: It’s Not Just the Interest Rate (fcsamerica.com)

Farm Loan Interest Rates Rise Sharply – Federal Reserve Bank of Kansas City (kansascityfed.org)

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