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| That is a big difference.
Bigger one in my mind is the way we handle equity now. In the 70s, (then young) baby bookers made good money and used it to start acquiring land. Now, the (young) millennials make some money farming and may buy a piece of equipment and the ( now older) baby boomer parents are still buying land. The concentration of land ownership into the older generation supports land values. Stepped up basis on generational farms means selling the family farm to your kids in retirement doesn't make much sense. The structure of debt is different. I suspect some hard times in ag, but I don't think the whole system is going to collapse under the weight of leverage because the older generation is holding a lot of the wealth unleveraged. | |
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Revisting the 70's
