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The farm crisis is not over
Author(s) -
Zulauf Carl R.,
Lines Allan E.
Publication year - 1988
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(198803)4:2<109::aid-agr2720040202>3.0.co;2-i
Subject(s) - agriculture , livestock , economics , farm income , agricultural economics , debt , production (economics) , government (linguistics) , asset (computer security) , payment , business , finance , geography , macroeconomics , linguistics , philosophy , computer security , archaeology , computer science , forestry
As farm income establishes nominal records, optimism has returned to US agriculture. However, examination of the causes—declining farm expenses, high government payments, and high livestock profits—suggests foreboding. Target prices can decline under the 1985 Farm Bill, and livestock profits will decline as production expands. Compared with current values, farm profits could decline $10‐$15 billion, farm asset values could decline 20–30%, and farm debt could decline 40–50%. These suggest the farm crisis is not over. Also, number of farms will likely decline due to declining prices; and forces supporting supply management may be strengthened.