The Real Reason Behind Consolidation???
Apr 08, 2010
You talked about consolidation in farming and the main reason why farms are getting bigger is low interest rates and easy access to credit. When you look at history, in the twenties there were some huge farms here in Canada one farm was 40,000 acres. Just like today it is easy to expand when interest rates are low, it has little to do with technology or being efficient as to why farms are getting bigger. It is having a central bank that controls the price of savings (interest) that allows farms to get bigger by borrowing money at artificially low interest rates. I may be wrong but it is a different perspective that I think is worth looking in to.