SW KS, near Dodge City | cornncows - 8/30/2016 20:49
Banker in a neighboring town just retired. Said he went thru the 80's once and didn't want to do what he did to customers then again in the coming years.
I'm a lender also, and I've never held anyone hostage to take a loan... Amazingly enough, every loan I've done, has been at the request of a customer. As a bank though, we've been pretty focused on working capital and restructuring guys' debt for as long as I've worked there (about 18 months), so I am hoping that we don't have any of those experiences. We do know there will be challenges, but we're not going to move the target in the middle of the game on anyone.
Now, having said that, we're going to see a lot of problems. For all those that think there is just a mountain of cash waiting to magically appear to buy all the ground that comes on the market... Well, there was a sale up in 4X2188's territory. 195 acres of cropland that sold for a hair under $900/acre. Buyer only got landlord's share of the 2017 wheat crop, but still, three years ago that ground would very likely have been 1600-1800/acre. Now, is that sale an outlier? I sure hope so... But guess what, when I have to evaluate/plan for the bank, what value do you think I'm really going to be using to make sure the bank isn't put in a bad position trying to rescue someone else's business? |
Millennials: Welcome to the 80's
