With Washington in chaos in its attempts to broker a compromise on the federal budget and debt ceiling, the effects of what happens in Congress and the White House could have a significant impact on agriculture…both in the short-term and long-term.
I’m no economist, but I found this article that pretty plainly lays out what could be ahead for consumers.
The bottom line is that the extremely low interest rates that U.S. consumers have been enjoying might spike upward, and that means it could cost you more to finance that new piece of equipment.
There are no certainties when it comes to Washington. That’s why there are a lot of hand-wringing and what-if scenarios being played out. But if your plans include taking out a loan for any equipment purchases, you might need to consider higher costs for that money.
How has the Washington turmoil impacted your operation? Would a spike in interest rates cause you to rethink your purchasing and maintenance decisions?