|
Very southern Mn | If you as a banker borrow more money to a farmer against a farm every time the value went up without worrying about repayment ability, you are definitely an accomplice to bad lending. It does take two but so does a drug addiction. Somebody wants the drug and somebody gives to them. Both guilty. Lifestyles that started after 1970’s price explosion kept getting fueled by land equity and than it ended. Of course not all loans were that way but Farm Credits lending policies in our area created a land market higher than Illinois here at the time. 30-40 less corn yield and 40-50 cents less basis at the time. So easy lending policies became a self fulfilling deal, created higher and higher land values. And of course farmer signed the note. I speak of our area because I witnessed it. Can’t speak for other areas. What was even sadder was guys that had equity in their farms but got squeezed out because banks got scared and could see their way out with no loss. They were the real victims.
Edited by jdironman 6/24/2026 08:27
| |
|
Old farmland article
