Ag industry Not Likely to Repeat 1980s Crisis

February 18, 2016 11:00 AM
Ag industry Not Likely to Repeat 1980s Crisis

The 1980s dawned with vertical integration springing from the fields of rural America. Agriculture was poised for unprecedented prosperity.

“It was the great age of consolidation and growth in agriculture,” agricultural banking expert Curt Covington said. “It’s when you really saw farmers start to become vertically integrated.”

Read more at Pork Network.

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Spell Check

Central, MN
2/20/2016 02:54 AM

  This is probably the most worthless article AgWeb has ever printed!!!!!

2/18/2016 08:36 PM

  If you have ever read back issues of farm magazines that are a year old or so they are generally wrong in their articles about the future. What happend to "crop prices are at a new price level" and "cattle have two more years of high prices". The article sounded like an ad for a bank.

Western, NE
2/18/2016 06:12 PM

  If you read the rest of the article on Pork Network, the lender is a Farmer-Mac lender that utilizes the FSA guaranteed loan program. Those loans must show a positive cash flow and have the collateral to support it. As of late, a lot of the lenders currently are back to collateral lending and don't put much emphasis on the cash flow. That's where we were at in the 80's. Only current difference right now is the cost of money. Why do you think there are so many non-traditional ag-land owners today? They bought the land and hoped the value would appreciate just like a stock. That forced farmers to bid up a piece of ground that they wanted. All are hoping that the price stayed high or appreciated. Balance sheets are sliding backwards. Any oil price rocket will throw ag over the edge! I have to agree with Dee, "likely" is a a big IF.


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