Journal Article
The wealth effect in U.S. agriculture
Abstract: 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.
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File(s): File format is application/pdf http://www.kansascityfed.org/publicat/mse/MSE_0113.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Kansas City
Part of Series: Main Street Economist
Publication Date: 2013
Issue: 1