It is stressfull to be an American these days. The speed at which our economy plummets to the earth has been surprising and unnerving. Each newscast brings news of another round of layoffs, each day brings another set of dire predictions.
In farm country, where just 6 months ago there was all this bluster about marching into a brave new era where food production was going to be all important, we now look at our future with a great deal of anxiety. Land prices have lost about 30% in our area, nearly overnight. That first 30% I think we can absorb, because land went too high too fast, and I don't even think there was time for farmers to get that 30% up on their balance sheets. Cash flows are tight too, because so many were counting on much higher grain and cattle prices. There is no reason to think that prices for what we raise are headed up anytime soon, the falling price of oil keeps a lid on any biofuels rally in grain, dwindling incomes keep the demand for meat, especially beef, down.
Even the folks that work the oil fields that dot our eastern Kansas landscape are blue. 6 months ago, the sky was the limit for oil. Their input costs have risen just like ours....now oil dives toward earth...what happened to the $200 per barrel predictions??
My grandparents outlooks on life were shaped by the Great Depression, with money they were conservative to a T. They feared the stock market, now their children have seen their retirement funds evaporate in the stock market..hmmm, maybe Grandpa did know best? Both my mother and Mrs. KFs mother have put their retirements on hold, as have many others, due to huge losses of their retirement funds.
The worst part of all this?? A general feeling we are just beginning. I don't think any of the regular folks believe this will all end in the 2nd quarter of 2009 as is predicted by our government...after all, they just decided the recession actually began in December of 2007.