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Of Intere$t
Of Intere$t
by Tony English
Volatility continues to run rampant on this market. At the time of this writing, we are still facing rising oil and the threat of record gas prices as we head into the warmer summer months. Housing woes continue, job numbers are weak and the economy as a whole is still precarious as experts debate whether we are in a recession or if the worst is yet to come. Everyone is holding their breath to see what the tax rebate stimulus plan will do and what effect a new (or lack of) Farm Bill will have upon the landscape.
Political risk also seems to be increasing as the food/fuel debate heats up. As a side note, the World Bank recently announced that rising food prices have led to social unrest in 31 countries around the world as of the first quarter of 2008. Many countries have already banned or severely curtailed exports of main food staples such as rice and wheat to combat domestic shortages and escalating food inflation. Free trade of agricultural products is poised for a significant test in the upcoming months.
As mentioned before in this column, during these times of change it is not enough to simply be a good agricultural producer. To thrive in this environment one must be knowledgeable about production, marketing, finance, accounting, legal and a whole host of other issues facing farmers and ranchers today.
Developing these skill sets, having experts at your side and making the right choices for your unique operation is critical. At Frontier Farm Credit we offer a wide range of financial products backed by experts to help you manage your financing, tax, insurance and record keeping needs. Please make sure that you have the right conversations with the right people as we navigate these turbulent times together. Frontier Farm Credit is your financial service provider, side¬by-side, season-by-season.