It is no secret that costs and interest rates are rising in the United States. For farmers and ranchers, the costs are greater than ever for basic resources, making it more difficult to grow the food that ends up on our tables and the price we pay for it at the grocery store.
Leveraging on Farmers & Ranchers
Many people do not realize that farmers and ranchers can take out business loans just like any other business. When a farmer or rancher needs to take out a farm loan, they often turn to the USDA Farm Service Agency and other agencies. A farm loan allows farmers and ranchers to finance the materials they need to realize a profit at the end of the season. The downside to this is that it leaves their assets leveraged. These assets include but are not limited to: land, livestock, equipment, fertilizer, seed, and general start-up costs. Since they are leveraged, their profit does not go directly into their pockets leaving them with an even lower net profit.
On the bright side, these loans have helped thousands of farmers across the country. Farm loans have kept generational family farms running as well as getting new farms started. Without farm loans, many American farmers and ranchers would not be able to provide food to the common people. When looking at the price increases at the supermarket, remember what the farmers and ranchers who work to put it there have to spend. Furthermore,