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Excerpt from the report: Agriculture does not have an income problem today as much as it has a problem of absorbing large capital losses. The farm sector's problems center on capital losses and are particularly painful to those farmers whose investment debt is threatened by declining equity values, especially as farmland values decline. The farm crisis reflects the panic and pain associated with facing up to the reality of the loss, uncertainty about who will ultimately bear the loss, and lowered expectations about future market prospects. This report helps us understand the underlying nature of the problem and the essential difference between current income and longer term capital adjustments.


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