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Saronville NE | Our banker told us at renewal last winter that he had operstions lose over $1 mill in working capital in 24 on board to do again in 25 and that was giing to be tough decisions and conversation before would be a 26.
Only 15% of his customers did not lose working capital and were profitable last year and everyone of thise operations had cattle he said.
So imo most are going to lose even more this year with current commodity prices.
What i see here in our area and why its biut impossible to expand if you run yr operation like a business should. So you have say $350 rent but here you have to buy the pivot on rental ground well we have been hit with so many storms its all new pivots mainly in area so have to buy a $100k pivot. Plus now our insurance for just the pivot is $40-55 an acre. So do the math. $350+$100+ pivot payment plus $50 pivot insurance. Do that plus inputs. Even 240-25] bpa irrigated corn at $4 your losing money. And theres alot i know if over $400 in area with new corner system pivots that are over $200 payment. It flat doesn't work. But taxs went up substantially again, land prices have held, no LL want to go down. Till banks push large amount of guys to give up or push rent down it wont change imo | |
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rise of farm bankruptcies due to trade war???
