Posted 4/7/2021 06:15 (#8937475 - in reply to #8937071) Subject: RE: Thinking about ag economy
80s were different then today. In the 70s we had 7-9% interest before the 80s interest of 16-20%. Yes the 80s interest did kill us. Today interest is more in the 3-5% range. In those days the lenders were more concerned about your debt to asset ratio then your cash flow statement. Another big factor is the difference of fed crop ins as compared to today. Back then fed crop ins was barely heard of. Some farmers carried hail ins but that was about it. In the 80s farm were more diversified with livestock being on most farms. Hogs were the mortgage lifters but one disease at the wrong time was a disaster. Back in the 80s you barely heard of a credit card and the one there were didn’t have cash rewards. I lived thru it but don’t know what we really could of done different with the circumstances in hand. If we would of had internet like today I’m sure there would of been many a interesting story told. Many a farmer was backed into a corner and like any animal we will die or fight to win. In my area I seen land prices start at $200/ acre range in the 60s to $1400 range in early 80s back to $300-$600 range in late mid to late 80s. No one had any money or was scared to part with it at the time.