Historically farm operations have used wealth to support consumption and investments when income fades instead of allowing investments to fall with profits. Farmers tap their existing wealth to maintain their agricultural investments at profit levels. Economists believe that U.S. agriculture is set for a farm profit decline due to previous agriculture investments, larger commodity supplies and higher production costs. The following article discusses the “wealth cycle” or “wealth effect” in U.S. agriculture, pointing out similarities between today and the 1970’s; concluding that whether the farm boom fades or bursts depends on the wealth effect and how farmers finance agriculture investments.