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southern MN | I went to lots of auctions with dad. It was a very split time, it did depend what your debt load was. Low debt and things weren’t too bad, super high debt and everyone tried to help you, mostly to cover their own behinds. Those in the middle, a little too much debt but not really bad off were the rough ones with ulcers, they were thrown to the wolves.
Dad was debt adverse, carry over from growing up in the 30s, so we got some deals at auction sales but between the poor grain prices and the bad (very wet here) weather there wasn’t much income to spend so didn’t go for many deals. Felt bad about what was happening to neighbors and some elevators, coops, dealerships, but didn’t affect us too badly. Was just a time to batten down and hold on.
The rescue from the govt was to have the Grain Bank, where they bought and stored excess grain from us at about cost of production. So everyone kept production way up, trying to grow themselves out of debt with volume. But that didn’t work, as interest and inflation was so high, and grain prices kept dropping as supplies got bigger and bigger. With the grain embargo fresh, there were little grain sales and the pile of grain kept growing and growing in the bins year to year, depressing grain prices severely. With huge stockpiles there was no worry nor bid of grain over winter, plenty sitting around.
Govt finally changed policies to set asides to idle some land, which city folk didn’t understand, why are farmers being paid to not grow anything? Inflation from interest rates were hitting city folk about then and their food prices were rising, it was all the farmers fault because they were paid to not grow anything.....
Really took the 1987 into 1988 drought to lower grain reserves enough to get the farm grain ecconomy working in any shape or way again.
In ffa we were studying how to make interest only or 99 year land cost loans work. We studied break Evans on crop production. I started to wonder, what the heck, why are we planning to hope to break even, what a goofy lesson plan..... it was the thinking of the day, you are a winner if you come out even after 40 year career. Sheez. Back then it was common or normal to own 80% of what you farmed, just rent a little. That changed in the late 80s when those interest only land loans weren’t working so well and everyone cashed in their land for some spending money, and just rent land. Was a different more stable period it seemed, before the 1980s.
Paul | |
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Like to hear thoughts on 1984 farm movie "Country"
