$78,000,000/67000ac

[cottonpicken]

What keeps me up at night is cost push inflation. This is not the proper reference to the definition but have no other term to use.

You can use quite a few industries experiencing this at the moment base metals,oil, whatever doesn't matter. Anyway you have got plummeting demand and price and costs are not moving so the only remedy is on the supply side but what does the average do?produce more and more making the problem worse and worse. A lot of that is standard Econ 101 except for the fact the macro is in no mans land.

Zero interest rate policy pulled forward demand and things that should have waited where given the green light. Purchasing is cheap cheap cheap but look at what that did,created false demand and spun out all sorts of false indicators for the market.

Its a Potemkin village.

So the question becomes what happens if the liquidity drys up and there are no exits left for anyone,if that happens you will see serious serious problems and then the printing will really start.

[sumdumguy]

I always wondered how these big operators could afford new equipment every year. Just thought they do that so they don't need to fix anything. Now I bet they do it to increase their debt load. Just like the government.

[bluefargo]

OK explain to me why why Pike, son and. CFO have been retained at double salary till August.
If I were owed money by these bozos I would be seething mad. I just don't understand the legalities at work here.

[crusher]

......and why is it that every farm in the Ritchie Spring Auction has nicer equipment than me? I'm not jealous, just sayin

I used to come in for lunch and get ready to bid. Not this year, I do't see the appeal of that big shiny stuff. Guess that's how I can spend a big part of the winter out of the country. Happy Easter!!!!

[bgmb]

I still say its not about size its about management. The next acre should make you as much or more as the last one.

Bottom line is there are small farms that go broke and there are big ones that go broke. The big ones make the news and the small ones do not.

I bet there are no 1000ac farms that only own 140ac and have 1.2 million in debt. This is the part I find amazing.

[farmaholic]

Interesting perspective when you condense it to that comparison.

[TOM4CWB]

1000 ac @ $1.2M; Some Young beginning grain farmers... are doing this today... with help of family! No BNKRUPTSY! Scale of debt does matter!

[fjlip]

Agree Tom, neighbor's son just did that a year ago, 1 Mil for a section.
Also my thoughts exactly crusher, most auctions newer, bigger and more of each machine than I.
Need to buy more iron for a BIGGER flashy auction!

[bgmb]

We arent talking about land debt here. We are talking about a farm that was 85 percent rented having $1160/ac debt

[bgmb]

If your farm is 85 to 90 percent rented all you need is $300/ac for equipment and money to put crop in and everyone knows you cant borrow 100 percent