deep SW On. | Maizeing - 9/21/2014 13:28
The ratios may look better but there is some "big number syndrome" out there on the debt side..... Not saying that is the case for everyone. Might be hard for some young guys to believe, but I've seen a lot more guys go broke for a couple hundred k then I've seen go down for a couple millskies. There is a saying that says when you can't make the payments on a few hundred k your in trouble, when you can't make the payments on a few million, your banker's in trouble....... I wouldn't read that to mean you are in the clear....
Maizing the last 2 guys around here that I know of that got "forced out' had debts of $300k other one $8 mil.......not just debt but how is structured and cash flow ....I thought Podolinsky JD equip't sale was quite soft ,especially combines (posted prices on proxibid) ...... Its the number of dollars handled that may become an burden as say a $100k or so you can pay that off with a decent off farm job but if its a few million well.....that is what got the hog guys a few yrs. ago when before when things fell apart a guy selling 500-1,000 or so losing $20 was out $20k ...this time guys were losing $50 head on maybe 10,000.....really won't know were this is headed for 3-5 yrs. .........and even with $5 corn does that make an average 100 acre farm worth $1 mil. to just crop ...... last land sale to close near me was at $6k an acre and then $1 k for tile........tile it will be 175 bu. corn ground ,works for established guy but guy starting out who has a family that wants clothes and food,I don't know.....how are your soys yielding?
Edited by redoak 9/21/2014 17:04
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Interest rates. Something to ponder on a Saturday night
