Inflation! Higher Interest rates! HM

[SASKFARMER3]

Seems all over the Internet this week their is rumblings about china's inflation, do to increase in food costs. Then Europe is up 3.3 percent in Nov. Then our bank of Canada governor yesterday saying look out the shit is about to hit the fan.
I am starting to believe 2011 could be one F*&K of a year. Not because its to wet to seed but because the world is in a new transition to higher interest rates. Lock in any rate you can now!!! Get out of these BS floating interest rates that lots lots lots are using. Pay down debt if its floating.
What are others thinking. Because it seems these Big Guys are firing a lot of warning shots lately and after Christmas and into 2011 could get very interesting.

[vvalk]

Sf3. If you really want to see a disaster, have the got raise interest rate 2% and see what happens. Stay floating in my opinion. Every month you save 1 or 2% you need interest rates to rise 2 to 4% to avg out. Ill take my chances.

[charliep]

A person who stays variable to capture the spread should also be putting interest spread saving plus back into principle.

Will be interesting how everyone makes farm investment decisions in this time of increasing uncertainty. Given average age of 57 (lots of farmers over 65), it is also a time of ownership transition. Interesting times with risk assessment critical. Risk is both opportunity and pain.

[charliep]

should check the dictionary. Should have my principles separated from my principal payments.

[SASKFARMER3]

Equipment we run some float some locked in depending whats happening. No longer than 5 years on all equipment and buildings. Land no longer than 10 years for a mortgage most 7. Have three at locked in rate few years back really decent. Looking at one now that was a 10 year but have way to much land for security 7 to go might buy out to get land to debt security right but its bigger one so locking in maybe.