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Buxton ND | Let's look at interest rate
Late 1970's very high end inputs of $75 x 18% = 13.50 per acre
Today $600 x 5% = $30 per acre.
Cut these in half cause your not borrowing the money for the whole year but many are already paying more interest per acre then back then.
IMO the biggest difference between now and then is all these "investors" buying land. Investors love to pile in the hot new up market and drive things wild which in most cases turn ugly when they go "We're Leaving"
Banks are a secured creditor, local Co-op's/suppliers can use a crop lien. Back in the 1980's/90's landlords did not fair well. If some of these land investors get file bankruptcy on things may change, IF they start selling we may all be surprised how fast land prices can fall.
3-4 years ago when I first brought up the 1970's,,,,,,,,,, I got my head bit off from every direction in Agweb, with many saying "its different this time" because of ethanol. Now this subject seems to be front and center. | |
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Input costs in the 80's
