Farm crisis around the corner?

[furrowtickler]

https://youtu.be/0oPQeOv0pxQ

[newguy]

These farms with 8 and 9 figure debt loads, I hope they grabbed a nice locked in rate 2 yrs ago, otherwise that could be shocking.

BTW there are no 4.5% mortgages anymore. Its 6% even with a quarter as security. Some article I read said the majority of locked in mortgages and loans will reset in the next 12-24 months.

Just hoping if there is a rug pull, its after this coming harvest.

In the 80s when interest rates went from 20 to 10 I thought it was a bargin.Now it goes from 4.5 to 6 and you think it is hard times.

[SASKFARMER]

I started farming in the first one. Not a fun time and our Gov would not compete with the USA and we were told to change or get out.

Direct seeding started and we all trimmed back.

One thing different this time big investors will gobble up a lot.

[Taiga]

Hutts are waiting to pick up the scraps.

[makar]

Hutts are waiting to pick up the scraps.

I am not sure, here what the hutts buy they are a 3rd party.

[Taiga]

You are lucky, they are on a spending spree further west. Getting ready to branch off again.

[makar]

They are trying here for 15 years cant gather enough.

[LEP]

We were pretty frisky up until 1981, paying top dollar for land, operating on lines of credit, until the dirty eighties with 20-25% interest rates calculated daily on operating lines. Then came droughts every second year. Those lessons need not be repeated. As I have mentioned before, Lentils, Canaryseed and Glenlea Feed Wheat saved us. If we would have depended on CWB, we would have starved with initial payments of $1.25 a bushel and wait 18 months for a few more crumbs, maybe. It made us tough, we built our own house, we hauled seed across the border, we custom anhydroused, we built our own seed plant and taught our children that all things are possible. Don’t wait - do it yourself.

Old Cowzilla, I remember FCC had a profit calculator and not one crop was profitable. DE - Pressing! Renters didn’t even want to pay the taxes.

A lot of good farmers left the industry in the 80’s and 90’s.

There was a time that lasted a few years where you lost less money the less land that you farmed.

A day of reckoning will come for some when they least expect it. I hope the bite out of my ass isn’t too big when it comes.

[makar]

They are trying here for 15 years cant gather enough.

Anything auctioned never goes to a hutt here. Lots sold, not to them.

[goalieguy847]

Didnt even ask about long term ( 10 or 20 yr) rates. More interested on a 3 yr fixed as ill assume rates should come down by then. However saw some charts and last time inflation hit north america and interest rates chased higher it took 6 yrs before rates started to come down.
Its all relative though. And at the end of the day id rather spend money on land than 1.1 million on a combine. I can always farm land with an old 7720... but i cant pay off that combine if theres no land!