Loan Interest Rates

[WCMO]

Just got a call about my operating loan interest rate choices -- sounds like even the variable rate is currently DOUBLE from the fixed rate I had last year.  I don't really see that changing much to the better for awhile.  Though I don't use my line of credit much anymore, it's nice to know it's there if I need it.

I remember the PCA interest rate march upward thru much of 1979, then moving even higher, peaking around 14-14.5% or maybe a little more variable rate where I was at the time, while some commercial banks ran as high as 24-25-26%.

When I bought my first house in 1982, my mortgage rate was 14%.

[Hobbyfarmer]

first farm I bought in 1972 was 8%. 

PCA interest in early 80's was in 20% territory at the top. 

Last year started with money market type savings rates in the half of one % range and now some are as high as 4.35%.

Camper and other toys are in the sales dumpster.

Even car dealerships are having some inventory build up.

Seeing new tractors out front of dealerships now too.

 Sold calves today , buyers wanted the 700#+ ones.

My biggest ones just missed $1500 by $3 and change.

Based on today's auction the 550# and smaller ones should have been bought and brought back in 80 day's for a $500 to $650 gain.

[BA Deere]

I overheard a dealer sales call the other day, I guess a salesman gets $7500 commission on a $600,000 combine and a scale up commission if they sell up to 12 units.  In some regions, even I could sell 12 combines, other areas it would be tough.   I do know salesmen don`t have room to wheel and deal these days.  I bought a planter and the price was the price. At least I wanted it delivered and that was a rigmarole, salesman had to go to their trucking department to get a quote and then do chicken scratching to see if he could do that, as I think it came out of his commission.    Gone are the days of "Sure we`ll deliver it, the boys will have it out this afternoon!".

[Hobbyfarmer]

I bought a tractor in Indiana last August 30,000ish # and 120" on center, they not only came down on price, delivery was included.

Looking at a vertical tillage item now and dealers are offering delivery (too much for a F 150 pickup.)

Looks to me sales might not be as robust as last few years?

[Blacksandfarmer]

I'm in the process of buying a new belt trailer. Even with a sizable down payment and excellent credit the loan is still at 8.3%. I'm being told by my Trinity salesman that new builds are running slightly ahead of schedule. I would imagine that sales are starting to slow with the interest rate hikes. 

[brianasgreens]

Thanks for this interesting information!

[brianasgreens]

Online marketplace development services can provide businesses with the tools and solutions that allow them to become more efficient, streamlined, and productive https://mlsdev.com/blog/it-outsourcing