Yield is very vital to profit and there are areas that 150 bushel per acre yield of corn is still very good. Not everyplace has the potential for 225 bushels of corn per acre. So corn dropping to 5 dollars per bushel or lower locally could jeopardize profits especially if record high prices are paid on rent. We could still have a 1980's type financial squeeze in a few years though the circumstances may be different. Yes, the debt is not there like back in the 1970's but profits could be squeezed to the point where property taxes would extremely difficult to keep paid and selling equipment off may be needed to meet household expenses. What went up in terms of equity due to the land boom could come back down affecting ability to borrow operating money.
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Today's Featured Article - History of the Nuffield Tractor - by Anthony West. The Nuffield tractor story started in early 1945. The British government still reeling from the effects of the war on the economy, approached the Nuffield organization to see if they would design and build an "ALL NEW" British built wheeled tractor, suitable for both British and world farming.
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