Colvin, a former analyst at UBS AG and Credit Suisse Group AG, says U.S. farmers aren't carrying as much debt as they did during the 1980s crisis, which contributed to the downfall of banks as agriculture loans defaulted. The farm debt-to-asset ratio, which peaked in 1985 at 23%, is expected to fall to 10.7% in 2011, according to Agriculture Department estimates.
Vieth's farm funds are facing headwinds in coming months and years: A likely rise in interest rates will push up his acquisition costs and the value of the dollar, which in turn might hurt commodity exports. While the former trader keeps a close eye on the dollar, he says farming will continue to thrive.
Investors seem to agree. At a dining-room table in the farmhouse in Granger, Vieth sits down at his computer one evening and totals the day's haul: another $900,000 from investors looking for comfort-and profits-in one of the oldest and most essential industries on the planet.