There is an old saying in Farm country “land rich and cash poor” which often described most farmers economic reality. All their assets were tied up in the land they farmed. Today, many farmers are in the best financial shape they have been in, in decades. High crop and livestock prices and growing global demand for the food we grow in the U.S. pushed farm profits up by a whopping 28% last year. All the while crop sales are expected to surpass $200 billion for the first time in U.S. history.
Many fear that with every rapid rise in profits will come an equally quick decline, much like what we saw in the boom/bust 1980’s. Others believe though this time may be different. Sure no industry is ruled more by the supply and demand than agriculture, but by all indications demand should just continue to grow.
Not only are there more people in the world, but those people live in an ever prosperous developing world whose diet is less based on just the staples of inexpensive staples like rice and grain, and more on those tasty things we grow in the U.S., i.e., beef, pork, poultry, etc.
In this week’s video blog, I visit with noted economist and business futurist, Dave Kohl, on why he believes the good times down on the farm may last. We have a lot more on farm values and Oklahoma’s economy on this week’s Oklahoma Horizon that debuts Sunday at 3pm on OETA and Thursday on RFD-TV.