Expectation #2

[parsley]

mbratrud,

"surpise refusals of 3rd party financing"

Are you really surprised, though?

Don't grain companies know exactly which farmers will try to weasel out of a contract?

Would you be selective in who you deal with when times are tough and you really need every penny on the books?

You mostly know who you can depend on, don't you?

The paper is only as good as the guy who signs it. Pars

[mbratrud]

Oh exactly Pars, but thats where 3rd Party financing has always come in. This has been the way retailers have been able to avoid problem debt themselves. The surprise is that some of these retailers have seen an extreem tightning of credit to Farmers. I guess its a little shocking to me that on the last couple of years in farming producers have not been able to improove there balance sheets to the point that at the first sign of rough waters creditors are cutting them loose.

[ado089]

I have the opposite problem, retails will back me but FCC won't look at me because I don't have three years under my belt yet. Funny how that good name works locally but as soon as someone in an office 200miles away gets involved things go to hell.

[parsley]

Someone who works for a Federal institution told me today that farm debt is up 250%.

The problem is not only that farmers owe more and more money, but "Are they good for it?"

Too many are not. And default tendency reflects on all farmers.