The banks / equity in land line of credit

[ALLFARMER]

Thanks LEP

I think your comments are very accurate.

[Mufferaw]

As mentioned earlier credit responsibility is key. My Brother refinanced his house 5 years ago with the same strategy - next thing he had a new 5th wheel, 2 snowmobiles, boat and new furniture. Then 2 years ago re-financed his mortgage again for $80,000 more than the original purchase price of the house. His house would have increased ~$120,000 in the same time.

This strategy works great if you save more than you spend which wouldn't apply to 80% of people using this strategy.

[vvalk]

Not sure why people on here have a problem
with debt. I would turn it around and ask why
you would use cash. 25% down and pay 3%
interest. Its called leverage. But land for
$1000 an acre. Put $250 down and its worth
$2000 an acre now. That's 400% return. How
about equipment. We are seeing 6 to 15%
inflation on new equip year to year. Makes
sense to buy some now rather then later if
you plan to farm into the future

[cottonpicken]

Talking with fcc about lines of credit,he said about
150 an acre is about what a guy needs.

Nearly fell off my chair.

[hobbyfrmr]

Vwalk, you have a point. It is fair to say I am not
very progressive.

[Hopperbin]

More land and more debt equals more stress sometimes. I am sorta with the guy buying toys, only get to live once. Can only do without for so long.

[Daylate]

Valk is right. On the right piece of equipment the last
few years it can be less expensive than older
equipment. (anything thats good on canola). the
right used drill or swather can be an easy trade or
sell into a new one, because of the demand!
This is just farmer math but a guy i know, ;-) bought
a m155 macdon for 135000 after selling his old one
for 117000, which was 3yrs old and cut 12000 acres
of canola. Interest in of 4% puts it around $2/ac.
Thats #&$@'n cheap to have a machine that people
around the farm will run 18hour days with and not
complain.

[Daylate]

Valk is right. On the right piece of equipment the last
few years it can be less expensive than older
equipment. (anything thats good on canola). the
right used drill or swather can be an easy trade or
sell into a new one, because of the demand!
This is just farmer math but a guy i know, ;-) bought
a m155 macdon for 135000 after selling his old one
for 117000, which was 3yrs old and cut 12000 acres
of canola. Interest in of 4% puts it around $2/ac.
Thats #&$@'n cheap to have a machine that people
around the farm will run 18hour days with and not
complain.

[ALLFARMER]

FCC has some master pencil pushers who know
absolutely everything there ever is to know about
farming. Most have never ran a farm of their own
for a single day....such a sad waste. At least they
freely share their brilliance with guys such as
myself who even though are asset wealthy never
made money farming.