Ag lending institutions have a vivid memory of what the farm crisis was like," Liddell says.
Eighty percent to 100% financing for land and farm equipment that occurred at times in the '80s is no more, Liddell says. Equity, and a lot of it, is needed.
The debt-to-equity ratio for producers in the 1980s was 30%, Liddell says. Now it's 12%.
In the next three to seven years, Liddell believes, farmland prices will dip as crop inputs increase and margins narrow. A 10% to 12% reduction is likely, he says.