cancel
Showing results for 
Search instead for 
Did you mean: 
BA Deere
Honored Advisor

Video on rents not being paid

Hat tip to tara on the "other site".  This guy, Bill Graff is very interesting on some rent not going to be paid this February maybe November? Farm manager, the fallguy. ...bankrutcy judge may write a $350 rent down to $175 on a multiyear lease, because "change in economics"?

 

https://katch.me/BillGraff/v/3660ef9c-5de8-3198-893e-0b6d8b18f80d 

 

 

fresh part 2  make another pot of coffee  Smiley Happy

 

https://www.periscope.tv/BillGraff/1LyGBVlmqlbGN

0 Kudos
60 Replies
Red Steele
Veteran Advisor

Re: Video on rents not being paid

Goes back to the old saying "know who you are doing business with."

 

I don't really have too much sympathy for the landlords that took a gamble on the hotshot paying the high multiyear rents and now have to take a below market rent to keep their "hotshot" in business.

 

one of those "hotshots" came over to one of my landlords a couple of years ago, door knocking, and told him that whatever Steele was paying, he would pay $15 per acre more. The landlord and his family told me that they let him know the farm would grow up in weeds before he ever ran it.

 

Hope that wasn't a comment on my farming skills or lack thereof. lol.

0 Kudos
westernia80
Senior Contributor

Re: Video on rents not being paid

I agree wih Red, I have no sympathy for high rent landloads.  But also I blame the farmer.  I let go of my highest rent ground a year ago because it wouldn't work and I didn't have the cash to float it for a while,  it was also 60% of my land base.  If last fall they didn't know that they were that close to going under they either have too much ego to admit it till it's too late or they dont pay attention to there own profiblity.  JMO

0 Kudos
Kay/NC
Honored Advisor

Re: Video on rents not being paid

Why is this news to anyone? 

0 Kudos
BA Deere
Honored Advisor

Re: Video on rents not being paid

Everyone, what I said about rents is just a small portion of what is on those 2 videos, it isn`t anywhere near some pity party for landlords.  It`s alot of valuable information for those gleaning the net for clues as to the big picture of what`s going on in agriculture currently, if you don`t watch the videos you will miss alot, this guy is sharp.

 

One more teaser, he says a guy in `36 had 2 years of input money borrowed and in `37 he paid the current note + the interest on the last yr note...so he was always 1 yr behind.  Well in `40 the war bailed him out.  And after that he NEVER borrowed input money again and bought farms and farmed into the 1990`s.  So, that man lived throught the depression and the 80`s farm crisis...but he learned his lesson and survived the 80`s just fine.

 

But like I say, I guarantee that no matter how smart someone is, there are gold nuggets to be had from this guy`s knowledge.

0 Kudos
k-289
Senior Advisor

Re: Video on rents not being paid

Rents might not drop to much with all of the land needed for hog fertilizer - lots of expansion planned with Nebraska moving towards verticle building --- 

0 Kudos
bruce MN
Advisor

Re: Video on rents not being paid

"vehicle building"?

0 Kudos
nwobcw
Advisor

Re: Video on rents not being paid

He sure rambles on a lot and takes forever to get to the point.

0 Kudos
k-289
Senior Advisor

Re: Video on rents not being paid

   Verticle  - vertical  -  sorry on the spell check -    

0 Kudos
smokeyjay
Advisor

Re: Video on rents not being paid

Agree.  Today, I know of a farmer that can operate to 2020 without selling a crop.  Well financed and well managed.  He also hit multiple highs on yield with pulse crops and oil seeds, coupled with very good prices.

 

Good times will return.  In the meantime, manage well, control costs, buy iron only if it can pay its way, save capital when good yields come in and build up working capital.  Those that manage as if the good times were here to stay will be staring at a black hole as the life of the farm drains away.

0 Kudos