Study Says Economy Could Hurt Farmers
Published Date: 05-08-2008 09:46 PM CT
A recent study is hoping to draw attention to a potentially devastating problem... the collapse of Minnesota's agriculture economy. Fox Mankato's, Carly Aplin spoke with ag experts today about the future of Minnesota farmland...People investing in farmland may believe land value always increases... but a recent study by Minnesota 20 - 20, a St. Paul organization that focuses on rural and economic issues, is warning that may not be the case. Matt Entenza says, ''Farmers have never done better in modern history than they're doing now, but prices are going up so fast and land values are going up so fast it's almost guaranteed in the next two years we're going to see a downturn and probably a sharp downturn.''The downturn may occur because record land and product prices have created an economic bubble for farmland in Minnesota... and if that bursts it would be devastating. Glen Fladeboe says, ''Devastating for the state budget for education, for health care, all the important priorities for our state which relies on a strong economy statewide. ''The strength of MN's economy relies heavily on agriculture, which means farmers should always be thinking one step ahead. Glen Fladeboe says, ''During the good times, lets plan for the tough times and lets make strategic and wise decisions.''The report includes several recommendations to avoid a farm crisis including: Avoiding debt... the ag community should use current farm profits to pay down debt. Also, state officials should continue to support programs to assist farmers in a crisis. And MN should organize a study of the current market to plan for potential problems. Matt Entenza says, ''We're confident that people can avoid trouble but they need to understand they need to do that now and be careful now.''The Minnesota 20 - 20 study also includes farmland values for counties throughout the state and more detailed ways to prevent a farm crisis from hitting Minnesota. Carly Aplin the Fox Mankato News at Nine.If you would like more information about this Minnesota 20 - 20 study, including information on farm land values in our area, you can visit our website at fox Mankato dot tv and click on featured links
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