Posted 4/6/2021 20:44 (#8937071) Subject: Thinking about ag economy
We were talking about the movie Country on one of the forums. I got to thinking about the current farm economy, which frankly is a little frightening, but the entire economy is frightening. That's not really the point of my post.
I found this document. And it described the ag economy of the 80s as essentially a bubble economy. Farmers didn't ramp up debt because the markets (the numbers) suggested they should, but rather because it was a speculative bubble that pulled in investors and farmers alike. Anyway, that seems like it rings true today.
I ran across this paragraph and I thought Ben Reinsche was on NAT several years ago when I started on here. It was kind of an oddly written paragraph for a book chapter. I know there were some other "poster boys" for the farm collapse. However, was Ben kind of a poster boy of the era, or was this just kind of an odd story?
Do you feel like ag could be caught in a speculative bubble? Once again, I don't think we know how to do anything different than go with the flow. But this book chapter was interesting in some of its descriptions and information.