Stallman: Farmers To Feel Brunt Of Interest Rate Hike
PARK RIDGE, 111. The in- “represents another jolt to the
terest rate hike announced re- nation’s farmers and ranchers,”
cently by the Federal Reserve who are already struggling due
Witman Auctioneers. Inc.
ABSOLUTE
PUBLIC AUCTION
Selling to the Highest Bidder
VALUABLE REAL ESTATE
3.4 ACRE FARMETTE
West Hempfield Twp., Lancaster County
Located at: 4116 Holly Drive, Ironville, PA
THURS., JULY 6, 2000
6:00 PM
Directions: From Lancaster Go W. on Route 30
to Prospect Exit, Turn right, continue to Holly
Drive to Auction Site.
OPEN HOUSE INSPECTION DATES:
Sat.; June 3, 10, 17, 24, July 1 From 12-2 p.m.
Real Estate Broker Participation invited.
2-1/2 story brick/stucco dwelling with many
modem conveniences.
QUAINT 2 STORY BRICK SUMMER
HOUSE w/walk-in brick fireplace.
LARGE FRAME BARN excellent as a gentle
man farm/storage.
A 16’xl6’ hip roof storage shed to be sold sepa
rately after real estate.
For complete listing contact auction firm for
Brochure #6.
TERMS: 10% down day of auction, balance
within 45 days.
Young & Young Attorneys
Auction For: Gladys A. Swope
AUCTION CONDUCTED BY:
WITMAN AUCTIONEERS INC.
Auctioneers, Appraisers and Liquidators
JAY M. WITMAN, AU001127-L
LUKE R. WITMAN
657 Fruitville Pike
. Manheim, PA 17545 1
f , (717) 665-5735 • FAX (717) 664-2737
, r-.yvww.witmanauctiojieers.com
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to skyrocketing fuel prices and
plunging commodity prices, ac
cording to the American Farm
Bureau Federation.
Following yesterday’s rate
hike, several banks announced
increases in their prime rate to
9.5 percent.
“This will likely push many
farmers’ operating loans to well
above 10 percent, rates not seen
by many farmers and ranchers
since the early 19905,” said
AFBF President Bob Stallman.
ESTATE AUCTION
Furniture, Household
Goods, Tools
SAT., JUNE 10, 2000
10:00 AM
#750 Lakehurst Rd., Browns Mills, NJ
DIRECTIONS: 2 Miles east of Country Lakes.
Across from Friendship AME Church.
SELLING FOR THE ESTATE OF JOHN
HUMPHRIES: Waterfall Bedroom Suite,
Dresser, Mirror, High Chest, Night Stand and
Bed, Lime Oak Bedroom Set, End Tables, Agate
Top Table w/4 Chairs, Treadle Sewing Machine,
Upright Freezer, GE Washer and Dryer,
Refrigerator/Freezer, Microwave and Cart, Air
Conditioner, Old Kitchen Cupboard, Small
Appliances, Dishware, Pots and Pans, Model 124
Cub Cadet w/Mower Deck, Gravely Walk
Behind w/Mower Deck, Rototiller and Cutter,
Gravely for Parts, Troybuilt Shredder Vac (Like
new), 3750 Watt Generator, Air Compressor,
Table Saw, Ladders, Car Ramps, Craftsmen Push
Mower, Bench Drill Press, Tree Trimmer, Hand
Tools, Bikes, Berry Carriers, Come-a-long,
Bench Grinder, Wheelbarrel, Single Axle Cart &
Trailer, Cinder Blocks and Used Lumber, Yard
Windmill, Cast Iron Wood Stove and More.
ALLEN’S AUCTION SERVICE
RICK ALLEN AUCTIONEER
(609) 267-8382
• Sorry No Out Ot State Checks • Food Stand
• Preview 9AM • VISA & M.C. Accepted
If you would like a catalog or the
name of the dealer closest to you
call:
(800)468-3877
www.vets-plus.com
“While the prime rate is the
most often quoted rate, many
farmers borrow for operating
and intermediate loans at rates
of one-half to one percentage
point higher than the prime rate,
with some at one-and-a-half
points above the prime,” said
Stallman. “If interest rates for
all operating and intermediate
loans were to eventually in
crease by a full percentage point,
that would add an additional
$BOO million in interest expenses
for farmers and ranchers.”
A producer wishing to borrow
$200,000 to buy land or to refi
nance existing land loans would
pay an extra $2,000 per year if
long-term interest rates went up
just one percentage point, he
said.
Farmers and ranchers already
face $2.6 billion of additional ex
penses because of higher fuel
costs compared to last year.
America’s farmers and ranchers
already face debt of around $173
billion, with $9l billion of real
estate debt and $B2 billion of op
erating loans and intermediate
debt.
RO. Box 187, Myerstown, PA 17067 • (717) 866-2030
Lancaster Farming, Saturday, June 3, 2000-A45
“Our biggest concern is the
longer term,” said Stallman.
“The Federal Reserve gives
every indication of planning to
continue to increase interest
rates for the indefinite future
until the economy performs the
way they believe it should. This
will only squeeze capital
intensive businesses like agricul
ture all the more. All of
agriculture will feel the effects
as loans are renewed over the
next year.
“Most real estate debt is at
fixed interest rates. Most exist
ing real estate loans will not be
affected by this rate increase.
But farmers and ranchers
making new loans or refinanc
ing existing loans will feel a
direct impact. The Federal
Reserve’s decision may be tar
geted toward the general econ
omy.
“Unfortunately, the agricul
ture community gets caught in
the crossfire, and at a time when
it can least afford another eco
nomic hit.”
ttle“
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SLATS