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Jesup, IA | Iowa Guy, I agree with all comments about "not being able to make it on 400 acres." I'll bet a lot of clever ideas could improve the situation. I think most here could engineer a solution.
But I'll try to re-articulate my intended original message. Input costs are way out-of-whack with current grain values, and that even a farm with very conservative finances could loose a lot of working capital (excess of current assets over current liabilities, liquidity) very quickly in this go around.
It reminds me of what I learned on a tour of the Coors Brewery once, just outside of Denver. If I remember correctly, during prohibition, the company tried to keep operations going and employees working by taking their malting skills, and making malt powder for ice cream, cooking, etc.
But malt powder couldn't produce the revenue that beer did, and the company sufferred financially, had to make tough choices, and had to reorganize finances to remain intact.
Could this thing could turn on a dime? One poster here mentioned that farms sold for $4000 in 1980 and $1000 three months later. Its not hard to imagine this type of scenario again.
PS: I take it this is not the Brett Crouse I knew 30 years ago when I was a bank credit analyst? From Villisca, IA?
Edited by Ben Riensche 9/7/2015 15:25
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RE: Are the 80's really possible again??
