# Are Ag's Best Years Behind Us?



## Vol (Jul 5, 2009)

Good read with sound logic and principles.....and probably several elements of fact.

Regards, Mike

http://www.agweb.com/article/are_ags_best_years_behind_us_NAA_AgDay_TV/


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## Waterway64 (Dec 2, 2011)

I have to express my veiw of economists, especially those in government employment. They base their judgement on history. Certainly that is necessary. However Most can not see forward to be any more than mediocre intrapreneurs. We older farmers can be far to negative in our veiws to. I watch the positive agressive management of my kids and other young farmers and bussiness people and I see myself perhaps 40 years ago. I can only take off my hat to them..... Yes ag is going to see some nasty down turns, yet at the same at the vewry same time there will be some great opportunities for those entreprenuers who have a creative immagination and ambition. To stay in the same pattern you are in now is asking for disaster.

my .02 Mel


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## NewBerlinBaler (May 30, 2011)

Recently, we've all read - via links posted on this website - that farmland prices have been driven up by investors (speculators, really) who think Wall Street is no longer a safe place to park their money. So obviously, farmland prices are now overvalued. 
And this economist thinks it's a good time to borrow cash using our overvalued land as collateral? Sounds like a great way to lose the farm.

Gary


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## Vol (Jul 5, 2009)

NewBerlinBaler said:


> And this economist thinks it's a good time to borrow cash using our overvalued land as collateral? Sounds like a great way to lose the farm.
> 
> Gary


I take a different perspective from the article.....that if you think that you will need operating cash for farm inputs etc., now is a good time to secure it to build that operating cash "nest egg". Having low interest rates still available and long term pay back(if needed) makes a great time to protect your farming future by borrowing against "a little" of the equity.

Regards, Mike

"Now is the perfect time to make sure you've got an appropriate amount of leverage against your real estate assets," Stark says. "We've got interest rates at all-time lows, so you can lock in some really long-term fixed-rate rates and preserve that working capitol. You can take a little of the equity out of your land to preserve that working capitol to help you through tougher times or to take advantage of opportunities going forward. So you have that, and then I think producers really have to watch their cost of production."

Stark says farmland is still a premium, so we won't see land prices retreat off those highs just yet. He says it will take a second year of marginal income before we see a correction.


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