Study: Ag Boom Could Turn to Bust

Falling commodity prices, higher interest rates and a possible drop in farmland prices have economist concerned that farmers are next in line to go into major debt, which will spin the agriculture industry off of its economic boom and into a bust, according to a study by the Federal Reserve Bank of Kansas City. The largest concern is the drop in commodity prices predicted for 2014 and 2015 along with an expected 25 percent decrease in farm income. Farmers using wealth instead of profits to finance agricultural investments could take on significant debt or risk bankruptcy. To add to the concern, falling land prices could increase debt for farmers as land is used for collateral for farm loans. Read more (CNBC).