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Who Leveraged the Farm?

Allen Featherstone (July, 2012)

Summary

The agricultural sector is coming off several years of record income. However, the farmland, which makes up a substantial portion of a farmer’s balance sheet, is susceptible to boom - bust cycles. Is the agricultural sector setting itself up for another bust? Is this boom different? This paper examined one of the conditions for a bust, namely the leverage condition of the cycle.