The Current Credit Situation and Coming Cost-Price Squeeze

Type
Publication
Date of Publication
December 7, 2021
Price
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Overview

A cost-price squeeze is a situation in which the ratio of prices received to prices paid is declining. The current credit crisis makes it likely that agricultural producers may soon face such a situation. Producers can prepare by making sure their loan documents are in order and reflect a realistic assessment of the profitability of the business. (3 pages)

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