Operating loans here are at 11.5.

I'm in the MAYBE 1/2% camp

Well if building loans ever get to 2.5 to 3 levels, then fed funds would have to be zero or lower again, and that was artificially too low for too long when it was there. Not likely.
I’d take the bet against that 2.5 to 3.

The economy is not showing many signs of slowing down, unemployment is still low, PCE is still too high, and government spending continues to juice the economy. The fed has no reason to cut rates until demand slows, unemployment increases. If they cut at all it won't be more than 50 basis points. That will still leave the cost of credit high.

That will be interesting with $4 corn

It sucks.

I remember loosing my shirt on rental property financed at 16% around 1980. My first home was at 9%.

When we were young, we didn’t expect everything at once. Kids now days want all the luxuries in their 20s.

How much did the land you bought cost/acre in 1980?
How much did you pay for your home then?
How much was a brand new truck then?

Yeah, interest rate was 9-10%, but your dollar went way way farther then than it does currently. I don't blame our kids for being (This word is unacceptable on Trapperman), most young hard workers I talk to don't want a handout, but rather a fair shake. They aint getting a fair shake at all like we did.

As far as the rates go, the powers that be have gotten themselves in a real pickle on this one IMO.

When I was young Thorp loans were at 12-18 percent,..there were no luxuries,..you recognized, accepted and acted accordingly. nobody felt their loans at any stretch would be forgiven.

Yep and 1980 minimum wage we $3.10 an hour. If you were making $5.00 an hour that was good money. $12,500.00 was the annual income avg. There were less dollars!
2023 avg annual income $56,300.00 and change.

17% interest to 21% sucked. Land in north central WI was $100.00 an acre, figuring interest, and the avg. wage, it was tough.

Avg. US ag land was 7-800 an acre. Farmers were going under like crazy due to prices and interest rates.

National debt was 914 billion in 1980, lol

To me very unlikely to be less then 3% unless you are talkilng about interest rates received which are typically 2-4% below what borrowing rates are.

Bryce

It wouldn't surprise me at all if interest rates were higher by election day. Gasoline prices will likely be higher by election day also. OPEC has extended production cuts and compliance is fairly high. Demand is also increasing. The strategic election reserve has also not been refilled. The US is unlikely to add a million barrels of oil per day like we did last year.

Demonrats will try toforce it that low!! Election year doncha know!!!

Land was $500 a acre in the late 80s, $7,000 now. You can write off interest but you can't write off principal
. There's no real way to start farming now, when the older guys say "we need young people farming" what they mean is they want a 20 year old who will live onsite in a trailer and work 70 hours a week for $15 a hour.

I also felt 3% interest didn't sound realistic but hearing it from two guys a couple days apart made me curious. I've been working a pile and don't follow the news lately so I thought I may be outta the loop

Funny.

Both sides try to play that game equally well.

Lamborghini may be sold out of the 10,000 cars they make a year but if you drive by car dealerships you'll notice stock is starting to pile up, especially high end pickups.

In the OP u asked what everyone’s thoughts on chances of lower interest rates,,,,,


What is your prediction?

I assumed it would stay similar to what they are now. I was surprised to hear that two bankers claimed 3% or less by fall. I've been so focused on work that I'm out of the loop and thought maybe things were dramatically changing without me realizing it. Now I feel reassured it was just bankers being optimistic or their sales pitch.

We start work at 9 30 am when it starts to warm up, I probably just have to much time in the morning and am a bit chatty as well.