Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Is This Farm Boom Different? KC Fed Research Explores Agriculture's Boom and Bust Cycles

Tue, 14 Feb 2012 11:16:47 CST

Is This Farm Boom Different? KC Fed Research Explores Agriculture's Boom and Bust Cycles
Today, U.S. agriculture is in the midst of another farm boom. Could this time be different? Omaha Branch Executive Jason Henderson explores this question in recent articles for the Federal Reserve Bank of Kansas City’s Main Street Economist and Economic Review.

During the 1910s, 1940s and 1970s, U.S. agriculture experienced soaring export demand, which boosted farm profits. At the same time, low interest rates quickly translated rising incomes into booming farmland values, especially during the 1910s and 1970s. Past prosperity wilted, however, as global demand shifted, capital investments led to increased agricultural supplies, and leaner farm incomes were unable to support record-high farmland prices, especially at higher interest rates.

Robust export activity, strong bio-fuels demand and low interest rates have spurred another farm income and farmland value boom. Despite the vast similarities to past booms, Henderson notes that farmers today have hesitated to accumulate debt in financing new investments. Will limited farm debt and leverage be enough to keep any correction in agricultural profits from spiraling into a farm bust?

The Main Street Economist article “Is This Farm Boom Different?” explores the foundations of the current and past farm booms and is available is available by clicking here.

“Agriculture’s Boom-Bust Cycles: Is This Time Different?” provides a more in-depth examination of agriculture’s boom-bust cycles, including a look at the 1940s when export demand was sustained and debt accumulation was limited. It is available in the Economic Review by clicking here.



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Ross Wilson Applauds Cattle Feedlot Efforts to Increase Negotiated Cash Trade  Tue, 26 Oct 2021 15:20:14 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2 p.m. Tuesday, October 26, 2021  Tue, 26 Oct 2021 15:15:28 CDT
  • Tuesday, October 26, 2021, Market Wrap-Up with Justin Lewis  Tue, 26 Oct 2021 14:40:02 CDT
  • Expansion Partners to Heal the Harvester  Tue, 26 Oct 2021 11:55:46 CDT
  • Hilliary Communications to Launch $45 Million in Fiber-Optic Infrastructure Expansion in Rural America  Tue, 26 Oct 2021 11:48:59 CDT
  • Ralph Lauren Corporate Foundation and Soil Health Institute Unveil New U.S. Regenerative Cotton Program  Tue, 26 Oct 2021 11:34:52 CDT
  • Fire Weather Watch in Effect in Oklahoma Panhandle Ahead of Developing Storms  Tue, 26 Oct 2021 10:34:06 CDT
  • CattleFax CEO Randy Blach Says Inflated Prices are Here to Stay  Tue, 26 Oct 2021 10:23:01 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.


    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.