|
Nw Iowa | I agree with 8850, this is not 1985 by a long ways. For starters interest is around 8%, not 18%. A lot of land loans are locked in at under 5, alot closer to 4%. We have just come off a run of very good prices and good prices if you had decent crops. . Talked with a banker yesterday and he commented that borrowing is up but that some farmers have huge operating cash. We have crop insurance unheard of in the 80’s. Banks are not calling good loans like they did in the 80’s. Could it get worse? Of course it could. Inflation has made 5$ corn seem like 3.25 corn. We have government that has no idea how food produced passing legislation that will have very long term affects. Government debt is a can of worms that only printing more money for short term kicks can down the road. Day of reckoning will come on that but will be a much bigger deal than just farmers.
I will also go out on a limb and say 1985 was 39 years ago and a lot of us remember it and may have taken some chances but also structured our businesses with sone defense in mind. In 1985 or 1983, whenever it started was almost 50 years after depression started and not near as many remembered in the 80’s. | |
|
Kinze layoffs
