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Advisor
Posts: 1,207
Registered: ‎05-11-2010

Re: Farm Debt Increasing

Actually, in the 70s and early 80s, the mantra was plant fence row to fence row.  Banks encouraged borrowing on inflated land values as land prices went up.  The go getters ignored caution and did that.  And you all remember what happened when interest rates soared.  

 

Today, a healthy balance sheet with the right ratios and working capital is #1.