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North Central Kansas | Jon is right about the regulators. Banks may want to work with borrowers but have no choice when the regulator is breathing down their neck. I graduated high school in 1986. My brother graduated in 1981. He went to Kstate and got his Animal Science degree but by 1985 the farm was gone. After my parents died we were cleaning out their house. Looking at the financial records it is really hard to fathom how it happened so fast. They weren't that far in debt but the interest payments coupled with low wheat prices and yields and poor cattle prices made it impossible for them to service the debt. Their net worth was still positive at the time they sold out. We owned 640 acres and 70 cows. They sold all the land except 80 acres. We had to beg the neighbors to buy it. The one neighbor allowed us to live on the farm until the early 90's when my parents moved to town. Those were not fun times. I hope to never see that again but I know it can happen. We are on our second year of drought here. Subpar yields with high inputs doesn't make a person too optimistic. | |
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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
