I will have my radio program up in just a bit. I am watching “This Week in Agribusiness” and they just interviewed Lynn Ketelson from the Linder Farm Network. He made the following statement about agriculture, “it’s starting to feel a lot like the eighties.”
I have been saying we were heading for the eighties since 2013.
First there was high commodity prices then insanely high land prices,,
Farmers then came from out of the area and began out-bidding the locals for land.
After that, we started farming marginal land, tearing down every available tree.
Then farmers started buying equipment they didn’t need to avoid taxes. Equipment that eventually lost way more value than they would have paid in taxes.
There are a few differences today than the eighties; we now have low interest rates whereas back in the eighties interest rates were about like what you would expect on a credit card. Also, the banks have way more collateral than they did back then so bank failures will be few. I would also like to say farmers have more money saved than they did back in the eighties however the last three years have eaten up many savings.
Check this video from PBS and please be careful out there.