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Veteran Advisor
Posts: 1,517
Registered: ‎10-18-2016

Farm Debt Increasing

USDA says farm debt is getting high but strong land values are keeping the equity up.

 

What happens if land values weaken?

 

There is no reason to me that the US will necessarily be a first rank or strongest grain exporter.  If farm margins stay tight, something has to give.  Part of that will be more small farmers getting out and big farmers getting bigger.  But there's a limit to that.

 

At some stage, land prices would surely see some pressure.

 

Especially if there is any reduction in farm support in the Farm Bills.

 

What do you think?