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| Well I wouldn't call them ficticious considering the bank is using them in the real world. If you don't use your equity to borrow that's your business. We always have and it works pretty good you just have to do it in a smart way. We have always been a growth oriented farm and you should use your equity at some point in time to buy more land. Then just average your debt through your OWNED acres. I wouldn't pay for rent or buy machinery with equity though. As far as economists figuring out where farmland is going its all talk and bull they don't have a clue. If a nice farm comes up in your area buy it farm it enjoy it. Do a stress test on your farm to see if you can handle a down turn . If you can then I wouldn't lose a minute of sleep worrying about nothing. | |
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CoBank economist presentation friday
