Texas/New Mexico Stateline | kagen - 11/12/2012 22:42
With todays cost of production, IMO, it won't take nearly as long for folks to get in a bind as it did back then. If it gets to the point that a farmer is losing 500 per acre instead of 50-100, it will be dang hard to get operating loans and that kind of losses can eat through a farmers equity really fast.
Gene,
Last winter (after the 2011 summer catastrophe) my Dad was talking to one of the second generation farm boys that are part of a mid-sized farm family down here. Guy said he was pretty worried, and said if they had another 2011 in 2012 he might be done. Only one really bad summer might take him out. I was really really surprised, I figured they were on better footing than that.
I have not heard how he will come out. Because we did have another 2011 in 2012 and starting on 2013 just as bad or worse.
But I guess you are exactly right with some folks. I learned back when I was starting 1998-2003 or so, to be prepared for multiple bad years. We are getting along fine other than the depressing weather wearing us down. |
Asking about tough farm economy times
