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deep SW On. | For "us" ones that farmed through the '80's , it isn't near or close to being as bad as it was then . Land bought around the top in '79 or '80 (I think a farm mortgage was 18% then) didn't gross enough by '83 too service the interest. Guys that were buying farms in that time period generally owned maybe 100-150 acres and maybe it all wasn't paid for so taking on another 100 acres was just like cutting your equity in 1/2 . With machinery dropping in 1/2 it didn't take long for guys with 60% equity at the start to be in a negative net worth . Then even if they were "current" on there debt they could not get operating financing or re-new a mortgage. The ones that had it the toughest was machinery dealers and machinery companies,poor sales,deflated inventory and after big sales from '73 on a lot had built new dealerships/shops,ect. We should never feel good about losing a dealership or them having a "give away" auction . I think there will be adjustments but no '80's crisis for a few yrs. at least | |
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Talked to a banker.....
