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US Interest Rates and the Price of Capital

Carl Zulauf, David Orden and Gary Schnitkey

farmdoc daily, 2025, vol. 14, issue 127

Abstract: Public discussions often overlook that interest rates are a market determined price of capital in addition to being a policy instrument of the Federal Reserve. Herein, we examine historical trends in various, but not all, sources of funds and briefly list various current sizeable demands for funds. Lower supply relative to demand will typically cause pressures leading to higher interest rates.

Keywords: Agribusiness; Agricultural Credit; Costs of Production; Crop Economics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358479

DOI: 10.22004/ag.econ.358479

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