redoak - 1/22/2024 06:17
WAYNE0224 - 1/21/2024 21:14
Just for fun I wanted to ask for yall's opinion. Is it the fact that land values have not gone down, or is it the fact that more farms are probably paid off vs back then? Or is it that guys like me were too young to understand the stress of managing a operation in that era? How do you think this will play out today vs back then? What do you see as different or the same? Thanks.
Like Barren, farmed through that era .Short list
#1 Great Russian Grain robbery in early '70's -price s for grains quadrupled ,
#2 Lot of money made in later '70's -new machinery-land bought . Farms where smaller so adding another farm often cut meant u went to 50% equity
#3 Rampant ,wild inflation
#4 1980 ish things tighten up, prices drop as interest rates really take off towards 20% +
#5 PIK , 1983, 1988 droughts
#6 Maybe biggest thing land prices after '81 retreated every yr. , farm auctions for both machinery and land was deflating, those with 50-60% equity in 1980 were now in a negative position..Lost lots of good farmers backed kids ,lost everything..That last piece of ground bought & financed sunk them
Lastly was even more brutal for machinery,car dealers,manufacturers and home owners..Everyone I know is in a lot better place than ones where back then..Everybody seems to have excellent line of machinery and could easily go 10 yrs. without replacing much
1986?
