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sw ontario | billybob - 3/6/2021 11:10
What caused the crash of the cash flow needed to support all that?
Grain embargo.
I think corn dropped from 2.75 or 2.60 down to a low of 1.80, maybe lower. It stayed that way for 4 or 5 years from 1980 to 1985.
Also there was inflation. Not just 2.5 to 3 % inflation we have today, but inflation of 6 to 10%.
The Great Grain Robbery started it all of in the late summer or fall of 1972. Dec. corn went from about 1.50 to about 2.40.
I remember the farm just to the south of Dad's property came up for sale. $87,000 for 160 acres. Some pasture, mostly irrigated land. I showed Dad on paper that he could buy the land with 20% down and rent it out and it would be paid for in 20 years. He did not have to work the land, nor buy a pivot, ect. Just rent it out at average rental price. This was before corn went up. Was for sale in the spring of 1972. Nope.
billybob , don't know your age but corn was tough at $1 bu and 80 or so bu yields , ...Great Russian grian roobery changed everything corn+4 , beans $ 13 massive inflation came, oil shortage , gas pump line ups ,interest went from around 8% to as high as 23 %.....land went from say $500 -$3,500
+ Jimmy Carter grain embargoe, mortgage renewals at sometimes
,x higher payments, slow down in econonmy , IH ,A-C ,MF ect bankrupt along with 2/3 of dealers ........... | |
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Another crazy housing price post
