SEGMENT: FARM BUSINESS, BANKS & LAND

Orion Samuelson>LPL Interviews N-Z>LPL Interviews N-Z, Segment 15

SEGMENT: FARM BUSINESS, BANKS & LAND,

duration 14:12
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FARM BUSINESS
Talks about the stock market. Liquidity is having money in the market. Talks about the volatility of the market, the rising and falling of corn prices and ethanol. Volatility is good. Several ethanol plants went bankrupt because of the price of corn. It is important to know the cost of fertilizer and costs of productions with the huge price swings today. The price of oil affects the price of corn and soybeans.
BANKS
Rural banks have more liquidity than city banks, the J.P. Morgans. Farmers have to borrow money to purchase fertilizer and fuel at planting time. Rules have changed in the markets. Credit can be easy or difficult to get depending on how you own your land.
LAND
Talks about renting farm land because it's too expensive to buy. Two different sides on renting and buying. If you buy, you're invested in the community and it is a solid investment. Renting has become a necessity but makes it easier to walk away. Value of developing farm land has dropped.