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Very southern Mn | Storm, we had decent crops during those times, otherwise you described it pretty well. This is not even close to 80’s. Banks quit doing asset based lending along time ago. Now based on cash flow and debt to equity ratios and and a bunch of other financial yardsticks that most lenders in the 80’s never even heard of. Here if you had no debt there was some great opportunities and a few guys were really able to really capitalize. But most of guys with the money were waiting for it to get worse and when it did turn around most missed it.
Farm credit offered a deal to get land off their books. Basically if it went down after a buyer bought it, they would buy it back. They also offered some borrowers shared appreciation mortgages. If a guy owed 2000$ an acre, rather than foreclosing they offered to reset mortgage at for instance at a 1000 per acre but in 7 years, borrowers had to pay half the appreciated amount back. Both plans although definitely not fair to all was brilliant in the fact that they stopped the foreclosures, and they unloaded their land inventory in a very short time period and finally stabilized the land market. Market turned instantly. In 7 years most of the land had appreciated back or close to 2000 per acre and farm credit recovered some more. Here in southern MN our land almost got to Illinois prices in the 80’s because of Farm Credits liberal lending policies. Crazy, crazy times.
Edited by jdironman 5/4/2026 22:16
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Worst farm economy since the 80s
