What are Guys Seeing?

[Taiga]

I think the thought process behind debt numbers that are crazy high is that it is no longer personal and you just walk away if it all crashes; with large numbers it is the financier who is the one losing sleep.

This is a good article about John Buhler and his views on debt:
https://www.producer.com/2007/02/farm-equipment-tycoon-shares-buhler-logic/

[Flatlander]

Have an FCC rep that visits me twice a year, for a while I wondered what it was all about, I have little debt and has been paid on time. He said it’s his job to see clients twice a year, just that simple. Last time out I asked him if they ever say no or if you can just load right up on debt. On machinery he said they do say no occasionally only for the farmer to get the financing thru the dealership.

[farmaholic]

There's always Input Capital..... where you can mortgage your future canola crops for today's "cash flow" and "purchase capital" needs.

Nothing wrong with manageable debt though.

Ever hear of negative equity in land and machinery like there can be passenger vehicles? Wouldn't that be something.

[GDR]

Lucky them, who cares what new owner does, enjoy the windfall!

I'd bet the land market value per farm or individual is similar to different areas but size is not. Most on here seem to be from SK, I laugh when you guys classify farms as BTO vs STO. For the most part all us here with that high priced land are all STO, partly because of costs of acquisition and partly because our season being a bit more limited. A big farm here might own a couple sections vs some areas might be a whole township.