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Honored Advisor
Posts: 14,421
Registered: ‎05-13-2010
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Re: Farmers turn to Bank of John Deere

Hey Blacksand, I think a lot of that sort of thing masks the true ag financial condition.  The other day a Farm Credit Services honcho was saying how much better their customers are than they were last year.  This time is different from the 80`s because now it`s only a cashflow situation and "all you have to do is re-amortize your debts to longer term", true that lowers the annual payment and keeps you going, but it`s going backwards.   He talked about land up for sale held and went up a little, what concerns me is the reason for that is land put up for sale is much less, held in tighter hands.  It`s positive that presently no one HAS to sell, but a true test would be if a normal amount of land was for sale, would the prices still hold?

 

The local coops have a financing company that extends credit to farmers, the crop is put under lien until it`s paid and from the sound of it, their requirements and terms are easier than the local bank, but it sounds popular.  But there are gimmicks that could be used for "one more year" and I don`t know if this was the "one more year" or if next year will be.