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Veteran Advisor

Swimming in Farm Debt?

If you are trying to manage your farm debt, it could be getting tricky with less income. Shawn Williamson, the Successful Farming freelance writer wades into ways that can help you corral the debt.

 

Full story:  Are You Managing Farm Debt Successfully?

 

 

Thanks and let us know how you are dealing with debt. By sharing your thoughts, maybe you can help someone else that is in the same boat.

 

Mike

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3 Replies
Veteran Advisor

Re: Swimming in Farm Debt?

Should  I  expect  my Carbon ,sequester $$$ check any time soon , as reading an article in S Farmer on Carbon management ?

 

My  $16 / acre would be a nice lift for 2018 and future years that would be an excellent lift for our range land management practice on the moderate grazing practice in place ---    

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Honored Advisor

Re: Swimming in Farm Debt?

The so far difference between now and the 80`s in my experience was I started farming in the 80`s and interest climbed  10% 12% 18% 22% commodity prices weren`t bad.  $45 hogs, $2.35 corn, $5.00 bean, but 65 cent diesel, $90/28% N, $50 seedcorn and repairs weren't so crazy.  Back then, I basically grew my FFA project and stayed out of debt, there was farm sales 5 times a week and you could buy a 806 IH for $2500 and a 18 foot digger for $200.  And health insurance was $200/yr for a young single guy, no internet, no cell phones but I did have $400/mo landline phone bills  Smiley Wink    

 

See back then prices were good and inputs were reasonable, living expense wasn`t high, if you didn`t have debt it was nirvana.

 

This looming "farm crisis" doesn`t appear to going to be a high interest rate driven one, but more a below cost of production to service the "cheap money" debt.  That 5% interest rate of today is probably about as hard to service as 18% was in the 80`s.  But today, cardealer/farmers and construction company/farmers have cash to keep land values up, so there is still equity to burn thanks to the off farm booming economy.  However, to tap into grandpa`s un-mortgaged farm is only digging the hole deeper to pay off one day.

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Veteran Advisor

Re: Swimming in Farm Debt?

Wondering if the  Volcker Rule  (619)   still  could  come into play with some cause  &  effect ? 

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