IADAVE - 4/26/2017 15:55

ZM, you are correct in that some can not pay off an operating note during the year. Our point is that does not mean they will not be called. Some reasons are not financial. Some one with a little "pull" may want you out of the picture for a bit. Perhaps they want to rent that farm you just got a deal on.
In my case I was tied up long enough, even after paying PCA off, that the next year had to be done with cash on hand. ( I was still fighting PCA to release their lien) That particular year I could have rented 4 square miles for $50 an acre if I could have come up with the money. The sad part is the government check on most of that would have been $75 an acre or so that spring plus more later. I did end up getting 200 acres rented. I had to get Dad to rent 1/2 of it. As I did not have enough cash to rent even that. Sealing was $2.50 for corn. Just imagine the profit if I could have had access to some money. During this time period a farm over the fence sold for $175 an acre. Only one guy bid on it. He was one who was buying new tractors and getting loans written off.