INP

[bucket]

Broad acres ...what a scam that was...


FCC I don't get the under 40 loan thing either....being late to farming and by the time they were offering it I was too old but according to statistics I haven't reached the average age of farmers which is at 57 now....

I consider myself a young farmer.

And have also watched younger guys exit quicker because of grand plans .....

[bgmb]

I agree FCC made a bit of a mistake in Broadacre! If only they could have scaled up to their full size they would have succeeded!!! But that doesn't mean they wont lend to the average farmer. Although I see your point if brodacre got money how could they turn anyone down??

They do seem to like the slicked up type of farmer you know the guy who shows up at the machinery dealership dressed like a wall street banker and is playing with investor money.

[farmaholic]

Here's the saw.... I'm going out on a limb!!!


Maybe it's a difference in morals and scruples? FCC and Banks don't want to be the ones shortening the rope enough to have their clients hang themselves? The other group may have a completely different "AGENDA"?

I wonder what the process is of changing creditors from FCC and Banks to Input. If land is held as security by financial institutions, the lien would have to be released and Input becomes the lien holder after the funds are given. Maybe these guys need some serious credit counselling.

Maybe these guys are in, or going in, over their heads and traditional lenders refuse to be the ones holding the bag when they go down.

Remember when FCC and banks owned too much land the last time the "trap door" on the gallows opened? I doubt they want to have land in their portfolio in the peak of the cycle. When a bank owns land no one wants to pay full value for it or pay reasonable rent.

They are just probably mitigating their highest risk!

[bucket]

Farmaholic

I gained back more acres of cheap land this year..it was mine just been under water for awhile ...seeded it ...only to have the drought **** it up....I was really optimistic and reasonable with expectations. ....can you define what isn't high risk in ag anymore.....whether it was silver spooned or worked for....

[samhill]

Inp

I don't know anything about them, BigWheel is spot on with FCC and the banks. With about 2 mil in equity I could only get $150 k mortgage on my home to operate. A slow but steady death. Son want d to farm, but they wouldn't give him a chance. Sharks only option so folded my tent basically. No loans now,
FCC officers get commission, and so incentive there for the biggest clients.

[bucket]

Samhill

That's ****ing crazy ....those are the guys I want farming. ....dad's the mentor harnessing the youths ambition and a new set of eyes....

[iceman]

What you guys are forgetting is the back of the land title can have more than one name on it.

Banks or tier 1 lenders will only lend a percentage of the value. The Alt lenders have no issue with filling in some of the gap left. Of course it's riskier and they want a high rate of return because of it. These alt lenders will be second to get paid when sshit goes south. Everyone else takes a big seat to them even though they showed up late to the sshit party.

Iceman Out

[Ache4Acres]

I thought that the bloodsuckers buy out any other loans and make sure they get the land when things go south...which they are counting on.

[bucket]

It's a land play with input capital.....it's called expensing your capital.

[LEP]

Long and short of it, Input Capital has much easier lending guidelines with a much bigger price tag. Not even in the same stratosphere as FCC or the charters.

I would be very surprised to see more than a third of the Input Capital customers succeed. If we have a dry barely average crop it could all happen this year.

Rumour has it that a 30,000 acres farm in the area here became a customer in early May after missing his February FCC deadline. He was turned down everywhere by conventional channels.

[the big wheel]

And in many cases it's the interest not the principle that does guys in. So the question is are the traditional failing?? There will be lots of guys missing payments due to no crop so should FCC be pulling the plug? That's my question here should these institutions not have more faith in the farms and the programs. Because if they don t then obviously the poor programs are t doing their jobs

And what is the interest they cHarge? Seems to be lots of mystery to that question.

[bucket]

Insiders are dumping their stock is an interesting development. ....

[LEP]

After the past 10 years if there isn't some headway made to provide a financial buffer, then why not pull the plug.

Either guys have tried to grow faster than their financial resources will allow or are paying too much rent or buying too much equipment. Pure and simple.

In 2006 things started to look better pricewise but I had a huge debt hanging on me. Then the next couple years I saw people buying land, equipment and I was still driving my 800 versatile and paying down debt. They grew and I consolidated trying to clear past purchases.

There were opportunities that I had to pass on. Oh well, but I am in better shape today because I did.

[iceman]

After the past 10 years if there isn't some headway made to provide a financial buffer, then why not pull the plug.

Either guys have tried to grow faster than their financial resources will allow or are paying too much rent or buying too much equipment. Pure and simple.

In 2006 things started to look better pricewise but I had a huge debt hanging on me. Then the next couple years I saw people buying land, equipment and I was still driving my 800 versatile and paying down debt. They grew and I consolidated trying to clear past purchases.

There were opportunities that I had to pass on. Oh well, but I am in better shape today because I did.

Need a like button

Question for everyone.
Would these avenues have been used in the 80s if available? I'm talking input cap, FCC input loan and etc.
Back than 100k of loan term debt and a negative cash flow was enough to take guys out of the game.

Iceman Out

[farmaholic]

Need a like button

Question for everyone.
Would these avenues have been used in the 80s if available? I'm talking input cap, FCC input loan and etc.
Back than 100k of loan term debt and a negative cash flow was enough to take guys out of the game.

Iceman Out

30 plus years ago.

I would think things are different today....higher stakes for starters. Crop input loans alone are(could be) much higher than the asset term loans of years past.

Current and recent past interest rates are like being able to use someone else's money free.

I don't think the banks and FCC should be blamed for not taking too big a risk in some cases and if the denied borrower still insists taking on more debt. .....enter Input Capital, aka....Credit of Last Resort.