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Veteran Advisor
Posts: 6,101
Registered: ‎05-13-2010

Re: Debt free farming operations

In our state (Minnesota) we have this "young/beginning farmer" loan program that enables sons of established farmers to get cheap interest rates, and I see them bidding up farmland just like it was 1980 again ( when the state had the same program, and the fathers were using it to bid up farmland.)

 

I don't know of anyone in 1980 that managed to hang on to the ground they bought with "cheap interest" and doubt that much will be paid off this time around either. $11000 at cheap interest ...what is it 1%??? ,,,,may give you a payment of only $110 plus taxes and principle, but without inflation when you get near the 20 yr balloon, you are ( expletive deleted).

 

Oh well, there will probably be another round of debt forgiveness or inflation. Or both.