Interest Rates, Farm Prices and the U.S. Farm Sector

John Kitchen () and Frank Zahn

Rural America/ Rural Development Perspectives, 1986, vol. 03, issue 1

Abstract: What do interest rates have to do with prices for farm products? In a word, everything. It's a roundabout route, but interest rates are a prime factor behind changes in the demand for and supply of farm products. They affect demand, especially foreign demand, through exchange rates and thereby the prices foreigners pay. They affect supply through farmers' costs of production and thereby the price the farmers must get to stay in business.

Keywords: Agricultural Finance; Demand and Price Analysis; Financial Economics (search for similar items in EconPapers)
Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersra:310414

DOI: 10.22004/ag.econ.310414

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