Unformatted text preview: The point of the article is for farmers to learn from the mistakes that were made in the 1980s and analyze their margins and understand their limits. It also suggests that farmers should try to have a current ratio of two in case they ever find themselves in a debt related situation. These lessons will be crucial in the next few years based on the future forecasts from the USDA. The USDA is estimating that corn prices will be dropping, with this year’s average price being around $4.50 which is around the break-even point for many farmers. In 2015-16 the price is expected to be around $3.30 and in 2023 coming back up to $4.40. Many times the USDA predictions are incorrect, but this shows that it is still vital for producers to have a plan and understand the margins of production. The second half of Ag Econ will continue to emphasize the importance of analyzing the different aspects of production for costs and profits....
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- Spring '12
- Economics, Austrian School, Ag Econ