west central illinois | PeteMN - 9/4/2015 10:20
I think it was during that farm crisis that Minnesota passed legislation that limited the way banks could deal with farmers that were at risk of being foreclosed. One big bank that had a huge presence in ag lending responded to that legislation by pulling their ag loans in the state. So even low financial risk farmers that had been borrowing operating money for years with that bank suddenly couldn't get operating money. Farmers were told to just switch banks, but other banks refused to extend loans to new customers. It was a huge problem. yeah I have been told about that. Using solvent farmers and cling in notes to offset the bad ones knowing they more than likely weren't going to get financed somewhere else. Some did but many didn't. The banker that got me started worked the 80's and he has loyal customers to this day because he took a chance and financed some when others wouldn't. Got them through. |
Input costs in the 80's
