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North Central Indiana | Why is the no debt farmer using bank money? More likely he’s using a commodity loan at low interest and investing his personal money in literally anything else that has a higher return. There’s a reason he’s no debt and it isn’t because he’s been using an 8% interest operating line. Or even more likely, he’s taking advantage of every 0% interest opportunity offered from retailers, chem companies, seed companies, etc and borrowing the balance on a commodity loan at low interest. There’s tons of 0% or very low interest programs out there if you’re willing to look for them. BASF had 0% this spring financed on JD financial or Rabo, Becks and Brevant had 3% on seed the same way, that plus patronage from our coop makes seed, chemicals, and fertilizer better than 0% financing. Corteva truchoice funded through any typical financing is basically a zero interest program or better, large chemical wholesalers were offering zero percent, equipment manufacturers and dealers had 0% interest programs.
Land prices falling by 50% doesn’t happen in a vacuum and means relatively little if you aren’t actively paying for land. | |
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Well Heeled operations from below
