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NW Iowa | I'm really not part of the hyperinflation crowd, I don't think we're on the brink of it or anything.
But let's say we did have very strong inflation, maybe even hyperinflation, for a period of a year or two. From the production ag perspective, obviously cost of goods and services (inputs) would go way up. Likely too would the price for the products we produce. So your budget and cash flow projections would double or triple in size.
What would lenders do in this scenario? If inflation was unpredictably out of control, could banks loan money with any sense of security? Or could rate of inflation somehow be used, along with interest rate, to determine the cost of money?
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Farm lending in a hyperinflation scenario
