The wealth effect in U.S. agriculture
Since 2009, wealth in the U.S. farm sector has surged along with booming farmland values. Similar to nonfarm households, farm enterprises historically have used wealth to support consumption and investments when income fades. During years of low income, farmers tap their existing wealth to finance spending on capital investments such as buildings, vehicles, machinery and other equipment. Thus, similar to nonfarm households, the wealth effect often leads to sharp increases in debt and leverage in farm enterprises.
Year of publication: |
2013
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Authors: | Henderson, Jason ; Kauffman, Nathan |
Published in: |
Main Street Economist. - Federal Reserve Bank of Kansas City. - 2013, 1
|
Publisher: |
Federal Reserve Bank of Kansas City |
Saved in:
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