taloga - 9/28/2020 18:22

Does machinery really count as equity?


Doesn't take long for that 1/4 or 1/2 million dollar toy to turn into 50k, and God forbid you blow up the 70k engine.

My local bank changed names a few years back. After that they quit taking projected crop insurance proceeds as collateral. They would take any machinery equity though. Made a few guys mad when they got cut off.

I'm sure that land is still the better place to be building equity............but machinery will do some. Now if you're always trading for the latest greatest stuff and still owe money on it.........then the guy with bought and paid for junk may be doing better equity wise than you. And like you said above.........you may not have any machinery equity at all.