The primary cause of the current potential farm crisis is low commodity prices. This fall saw the lowest corn prices in over a decade. In addition, wheat, soybean, and hog prices have all been near the lows for the decade. During the farm crisis of the 1980s, most commodity prices remained strong. The primary victims of the farm crisis of the 1980s were farmers with high debt loads that were not locked-in at low rates.
Most farmers can successfully push up their debt load only as long as interest rates remain low.
The likely victims if the current situation persists are farmers who have limited equity. Low commodity prices can create a year with a sizable farm loss. Farmers who have little equity could very quickly find themselves broke. The Bystanders Farmers without significant debt found the surest way to make money during the 1980s farm crisis was simply to invest their profits. The end of the farm crisis provided the best opportunity to buy land and equipment in nearly 20 years.