Michigan - Saginaw County | Credit is not that available.
I own land outright. Wanted to bid on an 80 acre piece this past week but didn't want to spend all my working cash so went to a farm credit agency.
Even with more land 100% owned than I was buying the best loan I could get was 50% down !
He says the board of directors will not go more than 3500 an acre for loaning out.
Shucks, for 50 down I might as well put 100 down and borrow the inputs in the spring.
The loan officer was apologetic.
I asked what he would do for a young fella just starting out. He said he could give him a cup of coffee and sympathy, but that's it.
Will, there be a sharp correction on land prices?
Well, I don't know but I tend to think when it happens it will not be more than ten percent.
What I do know is that grain prices will correct more than that within 24 months but fertilizer and diesel won't.
Gonna be interesting to watch when it happens. |
Asking about tough farm economy times
