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southern MN | That’s the thing.
We might be just fine, no worries.
But if grain prices stay low land prices have to drop. Over several years of flat grain prices, it’s inevitable.
Once those yellow portions of the chart retreat, borrowing ability drops away quickly.
And so what is not a problem debt load today, is a big problem then.
What is different this time is farmers seem to be renting more land, have less as an asset?
Short term expenses seem much higher and more likely to cause problems.
Paul | |
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Farm sector debt,inflation adjusted 1970-2019
