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Thinking about ag economy
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Posted 4/6/2021 22:57 (#8937324 - in reply to #8937139)
Subject: RE: Thinking about ag economy

Central IL
Actually it was a combination of the Boomers starting families and Nixon (a Republican) taking the US off the Gold standard that ignited the runaway inflation. Anything you purchased in the last half of the 70's was worth more the next day than you paid for it. From there, Carter (Democrat) initiated a grain embargo damaging the price of farm commodities much like Trump's more recent tariffs. The nails in the coffin were due to Reagan (Republican) and his choice of Paul Volker as chairman of the Fed. Volker raised interest rates to 20% effectively eviscerating farmers who were leveraged to purchase land or grow their operations. Younger farmers in their 30's and early 40's were hit especially hard as that is when most farmers have the most debt.

Although key differences during each major farm depression, the key similarity is those with the most leverage take the worst hits. Leverage is a great tool to accelerate growth and profits unless the ---- hits the fan when of course it can take you out.

Key in Ry Cooder The Taxes on the Farmer feeds us all.
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