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Nw Iowa | History always repeats itself, on that I agree. But the debt that everyone was comfortable with in the 80’s, at least in our area, was absolutely staggering. Is more debt being created now, yes, but I bet you would be surprised how todays debt to asset ratios would compare to 1980’s. In our are would be very hard to find anyone who will loan over 50% of value on farmland. In the 80’s, whole purchase prices were financed and in some cases farms were remortgaged just for living expenses. Cash flow projections weren’t hardly looked at as everyone so convinced land would never stop going up. That doesn’t mean I am overly optimistic, just that right now not even close to the 80’s. I am more concerned about a political action that would change things as we know or have known. | |
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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
