The "farm industry" has evolved into making sure little control is put in the hands of the actual producer. The average over extended, leveraged, cash strapped (particularly young entrepreneurs) is promising suppliers and other financiers his contract-committed production before it is even sown.
It's high stakes stressful gambling, using someone else's money in an era of interest rates that must stay at historic lows; or world economies will surely collapse. Its hard to believe that is a sustainable long term possibility; but in a shorter time frame it may be our fate until a wholesale restructuring eventually must ocur. It may well be the current reason why vast amounts of excess money to be "parked" in tangible assets like farmland.
In the last few months; I have noticed volatile exponential rises in land prices; inputs and yes crop prices.
Is everyone near positive they can meet the projections they promised their financiers? It seems very few farmers are fully sailing their own ships anymore.
Some would say that most farmers are darn poor businessmen; and not being in firm control of your destiny is a recipe for asking to be dominated by more powerful interests you have allowed into your business.
It's high stakes stressful gambling, using someone else's money in an era of interest rates that must stay at historic lows; or world economies will surely collapse. Its hard to believe that is a sustainable long term possibility; but in a shorter time frame it may be our fate until a wholesale restructuring eventually must ocur. It may well be the current reason why vast amounts of excess money to be "parked" in tangible assets like farmland.
In the last few months; I have noticed volatile exponential rises in land prices; inputs and yes crop prices.
Is everyone near positive they can meet the projections they promised their financiers? It seems very few farmers are fully sailing their own ships anymore.
Some would say that most farmers are darn poor businessmen; and not being in firm control of your destiny is a recipe for asking to be dominated by more powerful interests you have allowed into your business.
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