South West MN | Pat H - 5/30/2017 09:38
Yes there are nice situations with paid for land that generates a nice income even as prices go down. However, that isn't everybody and actually is a minority. My FBFM account has very few operations in the black this year and lots of folks being pushed to liquidate some equity. I guess I expect this to happen especially with a generation of farmers starting out in 2008 with no experience with sustained low prices. I don't think there will be lots of bankruptcies, but I was expecting fewer hands going up at auctions and bankers holding down those hands at times (by now) for long term debt
Maybe people with lots of money and land don't use FBFM.
People that shave there head don't go to the barber. |
When does farming react to low prices?
