Glasgow, Ky | Itchy - 1/19/2019 06:55
Several things:
1. Turbo charged diesel motors used in farm equipment made them light years more productive w/o the expense---
2. 4wd and or front wheel assist on tractors, make it possible to get the power from these turbo motors to the ground.
3. Hybrid seed traits
4. Better week killer chems.
5. Relaxed bank lending rules providing plenty of money to fuel expansion.
#5 is the big one. Government tightens up credit rules and higher interest rates and would play havoc with farming as we know it. Significant increae in collateral needed for all ag related loans, lower land prices eroding its value as collateral and equipment dealers requiring more cash with trades, just to name a few.
Exactly what happened in the early 80's. If you think things are bad in ag now you would be in for a rude awakening if the above happened. But things are different now and it couldn't happen again says many. Truth is there is still a significant amount of irrational exuberance in ag. Its just not as bad as it was when grain prices were high.
Edited by barren 1/19/2019 13:22
|
It's 1980
