How Will Younger Generation Weather Possible Economic Storms

My favorite ag economist Dr. Dave Kohl recently spoke for the 37th consecutive year at the American Bankers Association Ag Bankers Conference. And as usual, he shared valuable information that both those involved in production agriculture and those who work in related ag businesses can use. He spoke of the younger generation and how may they will face the next economic downturn.
Kohl: “Some of them particularly in the grain industry, haven’t yet experienced an economic punch and it is going to be interesting to see if they are going to be able to take that punch.”
Regardless of age, Dr. Kohl speaks to how the grain and livestock industries may fair in the future.
Kohl: “You’ve got the grain industry in the down part of the cycle and it could go — definitely one year — and it could be one to three or could be five or more. If it is five or more, then we are going to have what I call 1980s-lite. May not be as bad as the 1980s, it will be very regional and will hit the the grain industry. You take the other bucket is the livestock industry — it is very, very specialized. They are dealing with very, very big numbers and they can get upside down very, very quickly. I tell people it is like a stair step going up, but like an elevator coming down. So they will be feeling their oats I can see a couple years of that —now longer that is uncertain. The ones that are fairly diversified out there, they are in a nice sweet spot. Often times these are the mid-size farms and ranchers and they are doing very well.”