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Lowering Costs In A Down Market
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jakescia
Posted 7/31/2014 19:25 (#3995388 - in reply to #3995164)
Subject: In addition, banks would have to show that circumstances.......



Oskaloosa, Iowa 52577

In addition, banks would have to show that circumstances.......changed, and changed beyond what they anticipated or should have anticipated---- and within the usual circumstances within the industry.

In other words, the entire ag industry dropping is an expected cycle----- but p-poor mgt, say, from maybe binding land at twice the rent being paid by others, could be a particular item that the bank could point to that changed the game beyond what they expected.

Don't forget the crap that Farm Credit caused during the 80's---- and got their lunch handed to them.  I was involved in a "peripheral" fashion with those---- attorney associate won some cases against Farm Credit for farmers.... and led me thru the proceedings.

I would bet that if a farmer has a few acres where he is contracted for a period of years, and a gazillion dollars per acre......and the bank was nervous about equity (say, not much owned land)........ the bank could be looking at a demand----- but, that is tough to prove if the farmer fought it.

 

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