U.S. farmers are facing a tough economy: Lower crop prices and higher interest rates

A slowdown in the agricultural industry is "going to put a strain on farmers." But analysts say the rural economy in the Midwest and Great Plains is still doing well.
The United States' agricultural economy had a good couple of years, with crop prices at record or near-record highs.

But this year, as interest rates rise, banks are lending less money to farmers and agricultural equipment sales are falling. Farmers also have to deal with high costs for inputs like seeds and fertilizers.

“I expect that to spill over into farmland purchases by the farmer,” said Ernie Goss, a regional economist at Nebraska’s Creighton University. “The farmer, like the rest of us, is going to have to be prepared for higher interest rates.”