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Shelby, MT | "Farmers hate liquidity", I think this is a misnomer. Who really doesn't like cash. I believe it is the US tax structure that hates cash on hand. Farmers hate to pay taxes and with the inflationary dollar the old tax structure doesn't match up right with the new dollar. Grain prices rose to double or triple of 10 years ago, inputs rose too but uncle Sam still has the dollar brackets at the old dollar so that has forced the farmer to pay more taxes or buy more stuff or null and void ifyour living expenses rose and a bad crop. This scenario forces farmer to not have as much cash on hand as they might have if the dollar brackets were adjusted to the new dollar. $3 dollar wheat or corn would change that but durring these good times farmer might have put more away if the taxes dollar brackets were adjusted right. Instead the US gov has forced the farmer into a scary predicament where they could be facing bad times again and they don't have the liquidity they wished they had because they bought more iron instead of paying taxes. The gov wants two things more tax revenue and a booming economy. So by forcing the farmer to buy stuff the economy rolls on the farmer might get let holding the bag when **** goes south.
Interest rates artificially low doesn't help either. All guns being pointed at the citizen by uncle Sam to spent your money on stuff or else. We will get it on April 15th anyways. | |
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USA Today: farmland prices: Is the bubble about to burst
