Texas/New Mexico Stateline | Here locally we are entering a very dangerous time. 2-3 years of drought have lowered insurance APHs. If commodity prices drop too, insurance won't be worth buying. The dairies are really struggling because the lack of feed sources at reasonable prices. I know across the board a lot of guys are leveraged pretty heavy. They'll be fine as long as things don't change drastically. Like higher interest rates, or commodity prices tanking.
Really the guys in the best shape are the ones that have good irrigation capacity left, or have a lot of paid for land. Same as other parts of country.
It will be a very interesting next few years I would say. |
Asking about tough farm economy times
