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Veteran Advisor

1945 Markets

Wife  came  across  newspaper  clip  while  looking  through  family  history  -   -   -

Local  markets  as  follows August  1945 -

Leghorn Springs  22cents,   Leghorn hens 17cents,  Heavy springs 24cents,  Heavy hens 17cents,   Cockerels 15cnets  -  -   -

Eggs 28cents

Cream 50cents

Corn No. 2 - 96 cents

Oats 46 cents

Barley 85 cents

''' RYE '''  $1.18   -  wheat country,   4 letter  word  -  -  -

Just  a  glance back  - I'm aware,   NO  LOOKING  BACK  ALLOWED  -  ?  

 

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18 Replies
Honored Advisor

Re: 1945 Markets

If you look at corn being basically $1 back in `45, $1 back then was worth 1 silver dollar or about 1 oz of silver.   Today a silver dollar/1oz of silver is $15 or more.  So, if that says corn production got easier than silver production or our money value has went to pot.  But I do know, if corn was $15/bu, Bigshots all over the place would go nuts raising more & more & more.until it was $3 again...Dang John Deere, they made farming fun.   Smiley Happy 

 

From what I heard the 1940s was a golden age in farming, if your insurance agency didn`t pan out, you could go across the street to the banker and borrow money for a quarter, 20 bred sows and a B John Deere on a 20 year note and pay it all off in 10 years and then be working on your second quarter.

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Honored Advisor

Re: 1945 Markets

You can still borrow money today.  What's stopping you?  Smiley Wink

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Senior Advisor

Re: 1945 Markets

Smile....enjoying this thread....

but Roaring

ACTUALLY

Currently you would only be able to borrow 50% of the land's APPRAISED value.

No one will do more than 50%. PLUS, you will have to have at least 50% of your

equipment's value in equity because the appraisals and bank policy discount it by 50%.

Then, you will also have to have a CA:CL above 1 AFTER paying this years payments

before you actually live this year. (nets out at about a 1.25 to 1 requirement for

many.

 

Simple point is that you could not do now what most farmers did in the 60's thru

90's to grow the business. Lending policies only allow the rich to get richer and

virutally assure young farmers are forced into bankruptcy at some point. Just the

nature of the business, everyone has a bad year at some point. No wonder the

suicide rate is where it is for farmers.

Honored Advisor

Re: 1945 Markets

Time it will always be as long as government is involved....and we are so egomaniacal that history is forgotten..... 

 

Now as stated here, the young farmer isn't even a high priority for an old farmer.  He is somewhere below pond scum..... a victom to be raped of his pride with high rents and unimaginable proformance expectations.  Starting with the phone on his belt. he is never out of the bulls eye.  Going home and working his way out of this is not even an escape from the multitude that advise and dictate to him.  Most (including the rentee) haven't got a clue how to accomplish what all expect of this worm we all have our thumb on.

usda will provide the retiree a retirement plan so he doesn't need a young farmer..... no sense in giving anyone who isn't "well backed" an opportunity.  Us old timers who think our $500 land is worth 10K (total loss of focus) will not risk our imaginary $9,500 on a neighbor kid (who is not imaginary).

 

"well backed" ----- I have a vision of a man who in 1957, retired with 640 acres and equipment to farm it and another 800 acres rented.  He owed nothing and had saved a decent savings for the time.... With a sick wife he took a job as a school janitor, to get away from the dirt storms of spring, in a school system near his childhood home in central kansas.  He chose a promising young couple with no backing and sold equipment to them on time.  Rented his ground to them and offered to adjust the payout on the equipment "when" tough years come.  "We'll add years, and hopefully we will have many to come".

That is how a young farmer becomes "well backed".   And that is what happens in our country when we aren't looking for congress and taxpayers to do the real work.

It is ugly when a bunch of dirt farmers turn into "estate managers and investors".....  Living arogantly off the work of their predecessors .

 

Smiley Frustrated        its always somebody elses responsibility...... and right now there are there are abandoned dogs that are rated higher than young farmers in our society.

 

 

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Highlighted
Honored Advisor

Re: 1945 Markets

It sounds like you need a new banker.   Smiley Wink

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Veteran Advisor

Re: 1945 Markets

I  found  the  deal  of .28 / eggs  interesting, as I remember  '' Casing  eggs ''  for  the  creamery  truck   -  -  - 

 

With  all  of  the  tech  available ,  why  aren't  today's  layers  producing  say  2  or  3  eggs / day &  and  I'm  not  talking  about  double  yokes we  held  back due  to  the  creamery  rejecting  them, due  to  packaging  problems  -  -  -

 

2  or  3  /  day  would  cut  production  margins  by  -? , so  the  consumer  could  have  1/2 priced eggs  -  ? 

 

SW  -  NO  RYE  COMMENTS  -  even  with  the  ''  cover  crops ''  fad - ? Smiley Wink

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Honored Advisor

Re: 1945 Markets

It was in the mid-50s that Dad started on his own, he had saved $10,000.  He bought a 120a farm and rented 120 and raised a lot of hogs.  He paid a little over $100/acre to buy the land (didn`t have any tile), he had a F-30 and probably couple F-20`s. But I was figuring today that he didn`t have a gross worth of no where near $20,000...he started farming on that, didn`t have a off farm job, paid off his borrowed money in 5 years the 10yr note and was buying another farm.

 

You figure the $1 in the 50s and 40s being "$15" today, $20,000 then would be $300,000 today...and he bought a farm and comfortably farmed on that in today`s dollars.  But to buy the same farm and livestock and rent another 120 it would be $1 million today and you wouldn`t have a comfortable living and couldn`t service much debt.

 

In the 80`s in school I`d sat figuring what it would take to start farming (instead of listening to the teacher   Smiley Happy  ) and if I recall I would figure buy an acreage with some good buildings, farrow/finish 150 sows and rent 400 acres for my corn needs and soybeans to sell to off set the meal cost I would have.   Buying 4430 and 6600 combine, 8 row machinery, figured I needed $600,000 from FHA.   I`m glad I didn`t go that route or just when I would`ve started getting equity, I would`ve been wiped out in 1994 and 8 cent hogs.   My point is the 1980`s was the last years that you could still at least have the dream of starting from complete scratch.

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Honored Advisor

Re: 1945 Markets

I agree. BA
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Honored Advisor

Re: 1945 Markets

I still relate the economics To how much government budget the private citizen is required to carry. Viewed as “how much gdp it takes to carry public budgets”
IE — how high do wages need to be to carry tax load.
Government budgets are not based on what the public needs, but by what the public wants. Or even whatever the publc can dream, in terms of “we don’t have to pay the debt back”. It will be forgiven.
So don’t forget when your farm is down to the tough rows and financial ruin, go out and borrow 10 million on a federally guaranteed loan.. like congress did.