Ag lenders are slowly raising interest rates on operating loans to farmers.  A recent Federal Reserve report shows lenders charged an average rate of nearly five percent this spring, up from 3.5 percent during the final quarter of 2015. While delinquency rates remain low, additional increases could put more pressure on some farm operations. David Bau with University of Minnesota Extension says the list of ways to reduce expenses is getting short

The Federal Reserve anticipates further gradual increases to keep up with inflation.