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Missouri | Oh wish I had time to explain history. PCA/Federal Land Bank became today's Farm Credit but they are distant government involvement to none, I think. Gov loans be them Farmers Home/SBA type stuff either direct or guaranteed tend to be all high risk stuff/low equity. There lies one of the dangers that caused so many sales, Pofarmer is talking about. Deflation and Politics caused them to look at those loans in addition to what was in the private sector. PCA was good about loaning money to people that really did not need it. One reason for big sheds and harvesters, which are called blue tombstones. Tie all this together with new banking regulations recently passed and that is why this looks familiar to us that lived threw it. Unfortunately getting threw it had more to do with Luck and Timing rather than brains or planning. Don't even want to think about what would happen if one or two of these large operations go down in a community. That train can pick up speed fast. Very complicated set of things happening. Think about what would happen if Ethanol would somehow end the link between the land and energy. They actually develop alternative energy sources, and it works. Low interest rates are a carrot on the stick to spend money one does not have. Really not set on Doom and Gloom, just saying don't forget to use Protection. One difference today is the quality of operations are really good, we have eliminated most of the poor managers, which we had and consolidated in the 70's, that scares me as the next waive involves some really good operations and very large.
Edited by MU1979 8/3/2010 12:44
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Land Market
