24 Apr Agriculture Woes. Click to keep reading…
Agriculture in the U.S. has managed to avoid a serious downturn since the 1980’s, when debt loads fed a wave of bankruptcies. Balance sheets have benefited from stable land values, despite the rise in debt. The value of the real estate accounts for about 80% of a farm’s assets, and it’s a crucial source of equity for cash-strapped farmers. Low-interest rates have also helped farmers repay loans on time.
As interest rates rise, trade tensions escalate, prices decline, and the weather disappoints, many are worried that farm incomes will take a big hit in the near future. Rural banks are planning on raising collateral requirements this year. —Kiplinger Letter, 29 March 2019. Vol. 96, No. 13.
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