Like I said earlier If the Bank was coming out to meet with potential borrowers most guys with cash don't give a rats ass. So you would have gone to people who borrow money.
I have a friend that farms close to us and he could buy out most neighbors today with Cash. Lock stock and barrel. Yes, he has never been married or gone anywhere.
Here is how it happened, get to know your history.
Back in the 70s land was cheap and guys who bought could double the farm or triple a farm in a few years. Equipment became better and away a farm went. These guys were in the 40s to 60s. They also were of the generation that saved. Then along came the 80s much like we have today. Land went Boom through the roof. We had some that were bought for 15000 total for three quarters and sold for 483,000 a few years later. Yes boys and girls the 80s were interesting. But if land went stupid smart farmers sat back and had lots of land so why buy or rent. Rent also was insane.
In came the stupid interest rate hikes. You could get for your money 15% on Savings. Oh, borrowing was 18% but hey it works, yea the borrowers didn't fair very well.
Take the $483,000. it was a year later $72,450 more. So now you took that and invested again $555,450.00 and so on and so on. Oh, but the taxman had to get some. Yes, he did but you were a farmer where do they make any money. Fertilizer and chem and droughts helped out min tax was paid over the 80s. Also, these guys never were big spenders. Had a good home, maybe a cottage, and a few minor toys.
That original investment could be worth in the end. Well over a million in tax paid CASH.
The 90s on the farm were not a time to spend money and most didn't.
Now these guys are gone and that amount is transferred down it would be like winning lotto 6-49. Some will piss it away some will quietly enjoy the time and play farm.
It's always about the money.
I also said earlier look at this weekends Telemiricle in Sask some farmer is going to always give a little to the cause.
Enjoy the day.
I have a friend that farms close to us and he could buy out most neighbors today with Cash. Lock stock and barrel. Yes, he has never been married or gone anywhere.
Here is how it happened, get to know your history.
Back in the 70s land was cheap and guys who bought could double the farm or triple a farm in a few years. Equipment became better and away a farm went. These guys were in the 40s to 60s. They also were of the generation that saved. Then along came the 80s much like we have today. Land went Boom through the roof. We had some that were bought for 15000 total for three quarters and sold for 483,000 a few years later. Yes boys and girls the 80s were interesting. But if land went stupid smart farmers sat back and had lots of land so why buy or rent. Rent also was insane.
In came the stupid interest rate hikes. You could get for your money 15% on Savings. Oh, borrowing was 18% but hey it works, yea the borrowers didn't fair very well.
Take the $483,000. it was a year later $72,450 more. So now you took that and invested again $555,450.00 and so on and so on. Oh, but the taxman had to get some. Yes, he did but you were a farmer where do they make any money. Fertilizer and chem and droughts helped out min tax was paid over the 80s. Also, these guys never were big spenders. Had a good home, maybe a cottage, and a few minor toys.
That original investment could be worth in the end. Well over a million in tax paid CASH.
The 90s on the farm were not a time to spend money and most didn't.
Now these guys are gone and that amount is transferred down it would be like winning lotto 6-49. Some will piss it away some will quietly enjoy the time and play farm.
It's always about the money.
I also said earlier look at this weekends Telemiricle in Sask some farmer is going to always give a little to the cause.
Enjoy the day.
Comment