Borrowing our way to prosperity

[AlbertaFarmer5]

You think we have DEBT...have fun watching this blur

http://www.usdebtclock.org/# http://www.usdebtclock.org/#

http://www.usdebtclock.org/world-debt-clock.html http://www.usdebtclock.org/world-debt-clock.html

If anyone knows HOW to understand WHO everyone owes these TRILLIONS to, please inform us!

US national debt is up almost 4 times over the same period that Canadian ag debt doubled. Canadian consumers adding twice as much as farmers (relatively speaking) over the same period. Farmers are the laggards.
Farmers are businessmen(and women) too. When borrowing is cheap, it is not only good business to borrow, but almost a necessity to compete when everyone else is doing the same, or get left behind. That doesn't mean it will end well though...

[checking]

If you are getting by, then why pick on farmers.

Use general population statistics.

44 percent of Canadians live pay cheque to pay cheque while 78 per cent of US workers live pay cheque to pay cheque. Yet, I continue to hear that the US economy is booming. Best to caravan south because we have no economy, and no wealth generation powers in Canada. Well, I guess the explanation is there are 34% that are dead Canadian workers that require a pay cheque to maintain their residence.

On a lighter note, I wonder if buying/subsidizing into solar panels, and an arm"s long list of get on board targeted cost shared goodies to environmental proof (you name it, throw away later products for farms) isn't a large part of the 16 grand.

[shtferbrains]

Doesn't matter how so much what your debt is but how hard it is to make those payments.

2000 is a cherry picked year.

Times had been tough and it was hard to make payments.

That's why the land was 75K.

Few wanted the debt. Or could afford it at the time.

Without a doubt we will see that again.

Don't think we are there yet but things are lining up.

Most won't realize it till a few roll over belly up.

[farmaholic]

I would be concerned with the potential false security of people relying on current "toppy" real estate values.

[bucket]

Doesn't matter how so much what your debt is but how hard it is to make those payments.

2000 is a cherry picked year.

Times had been tough and it was hard to make payments.

That's why the land was 75K.

Few wanted the debt. Or could afford it at the time.

Without a doubt we will see that again.

Don't think we are there yet but things are lining up.

Most won't realize it till a few roll over belly up.

Lenders are not going to go after guys that are under water on their borrowing by land prices drop by 20000 a quarter at the high....there is no equity to take from...the BTOs will be fine...

The guys with equity and stability but some debt are the guys the lender are coming after....because at the end of the day their balance sheets will be easier to look good.....

[furrowtickler]

Up till 2000 it was relatively good here .
By 2004 it was far worse after a massive hail storm in 2000 , droughts 2001 and 2002 then the 2004 August frost .
That’s when no one could afford debt ... let alone payments on anything.
If that series of events happen again now it would wipe most of us right out .. fast .

Regardless, farm debt is much higher now than back then for several reasons , but the three by far are , seasonal input debt loads , land costs/rents and machinery.
Revolving lines of credit are huge now on a lot bigger farms , that’s just a function of farm business on a bigger scale now . Also most farms have been forced into purchasing most inputs 6-9 months ahead compared to 2000 .
That may effect overall debt numbers ???? I am not sure , but a lot has changed since 2000 that I am sure lol