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n. Illinois | you are correct the correction is roughly 2/3 from the peak with a range between 50-70%. It will happen again the only question is when and what is the straw that breaks the camels back.
There is a 50 year mega cycle and we are getting close to the correction phase of the cycle. Go back 50 years from the 1930's and read about the depression in the 1870's we all know what happened in the 1980's Lot's of guys lost their paid for farms in the 1980's because of that last farm they had to have in 1979 when they leveraged the owned farm ground to secure the loan for the new farm.
I know of lots of farm operators that took on farm payments that far exceed the gross income of the farm essentially using the anticipated excess cash flow from a livestock unit or rented ground to make up the difference. Keep your farm payment in line with the reasonable cash rent level of your ground if all else fails at least the cash rent will make the farm payment allowing you to keep it. | |
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Buying farm land
