IDEAS home Printed from https://ideas.repec.org/a/fip/fedkms/y2013n1.html
   My bibliography  Save this article

The wealth effect in U.S. agriculture

Author

Listed:
  • Jason Henderson
  • Nathan Kauffman

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.

Suggested Citation

  • Jason Henderson & Nathan Kauffman, 2013. "The wealth effect in U.S. agriculture," Main Street Economist, Federal Reserve Bank of Kansas City, issue 1.
    • Handle: RePEc:fip:fedkms:y:2013:n:1
    as

    Download full text from publisher

    File URL: http://www.kansascityfed.org/publicat/mse/MSE_0113.pdf
    Download Restriction: no
    File URL: https://fraser.stlouisfed.org/title/main-street-economist-9245/wealth-effect-us-agriculture-677498
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Banard, Freddie L. & Yeager, Elizabeth A., 2014. "Impact of Lower, More Volatile Net Farm Incomes, and Higher Interest Rates on Repayment Risk," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-20.
    2. Yeager, Elizabeth A. & Banard, Freddie L., 2014. "Effectiveness of Increasing Liquidity as a Response to Increased Repayment Risk: A Case Study," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-19.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedkms:y:2013:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zach Kastens (email available below). General contact details of provider: https://edirc.repec.org/data/frbkcus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.