News
Of Intere$t
By Tony English
Chief Financial Officer
We recently rang in the New Year and, with that, a new decade. Many economists are looking back on the last 10 years as “the Lost Decade”. On January 1, 2000 we were still de-leveraging the internet stock market bubble and holding our collective breaths over lingering Y2K concerns. The events of September 11, 2001 changed Americans’ world views and affected almost every aspect of American life, agriculture being no exception. Yet, continued policy encouraged consumption and spending to stimulate economic activity, setting the stage for the next bubble – housing. Credit was easy and lenders seemed unconcerned that they were not being compensated for the risk in their portfolios. Even four dollar gas couldn’t slow this new economic paradigm. Our society took globalization to a new level and – in many regards – executed poorly.
Now, at the beginning of a new decade, Jimmy Carterera Keynesian economics has returned. Americans are attempting to work out of a synchronized global recession. Many American households made very little to no economic progress in the last 10 years, according to several measures. Volatility and risk management have taken on significant importance in most industries and most assuredly in agriculture.
Today’s agricultural producers are very good at what they do. They will, however, need to continue improvement in almost every aspect of their operations. Change and volatility will be constants going forward. At Frontier Farm Credit, we can provide you with a full team of financial experts to help you face this “Brave New World.” Please contact your Financial Services Officer today to discuss a full array of financial products. In addition to variable, adjustable and fixed rate loan products, Frontier also offers insurance, estate planning, record keeping, tax preparation and appraisal services.
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