THE COST-PRICE SQUEEZE: PROBLEMS OF AND MANAGEMENT STRATEGIES FOR ESTABLISHED FARMERS

B.R. McManus

No 283534, 1978 Annual Meeting, August 6-9, Blacksburg, Virginia from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Dr. Robinson has set forth very well the economic climate surrounding the cost-price squeeze faced by farmers. The agricultural sector has gone through a major boom in capital expenditures and land prices involving a relatively high level of debt financing (Melichar, p. 2). Following such a situation, financial shocks occur if income flows fall significantly from the levels that triggered and fed the boom (Melich, ar, p. 2). Dr. Robinson has shown that net farm income increased substantially and this increased income generated expectations that contributed to capital expenditures and land price increases. These events were then followed by lower net incomes while purchased input prices continued to increase.

Keywords: Demand and Price Analysis; Farm Management (search for similar items in EconPapers)
Pages: 17
Date: 1978-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea78:283534

DOI: 10.22004/ag.econ.283534

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