Markets down again!!

[Partners]

Some guys are not worried about debt..

Hergott's sold the first BG 100ft air drill and 1300 bushel tank ..

Retail--$1.25 million..

[iceman]

Partners,

If that was in Alberta it would be all cash deal

Ice out

[hobbyfrmr]

There is a lot of cash on a lot of farms. Think of the 5000-20,000 acre farms, paid for, selling at good profits for 3 years straight. Big time cash.
They are buying more land, building mansions, and and machinery than ever. Money is not a problem on some farms.

[Partners]

Maybe some..But in this area, none of the large farms are old enough to be paid for...

[Richard5]

I'm just throwing it out there farma

I agree that i think too many are getting way too far in debt for what they can handle and all for the wrong reasons - they never get turned down for more loans, leasing, or the worst, those damn farm input credits

No matter what age, i would be very worried if i had more than 300 per acre debt at any one point during the year. If its only on land, then less issues but possibly a concern

[Richard5]

Partners, any idea where that drill would have went? I just don't see the need for it here, especially at that price, prob 950 cash, but even if.

If i needed seeding power, i think a couple 60 or 74fts would be a lot cheaper and probably a better job

[Oliver88]

I'm just throwing it out there farma

I agree that i think too many are getting way too far in debt for what they can handle and all for the wrong reasons - they never get turned down for more loans, leasing, or the worst, those damn farm input credits

No matter what age, i would be very worried if i had more than 300 per acre debt at any one point during the year. If its only on land, then less issues but possibly a concern

You make some good points that are likely being overlooked by a lot of the ag industry.

I think with the land sales over the last five years $300 per acre of debt wouldn't be hard to arrive at if your farm increased in size significantly since 2011.
Depends on the % the land base increased by.

[farmaholic]

At the Farm Progress Show, I asked Bourgault why they keep building the drills bigger. His answer was, because farmers keep buying them. I guess there are some areas of the world these "goliaths" are useable. I guess thats why the areas that have variably shaped fields and lots of obstacles need sectional control. There has to be a point where size and weight and engineering limitations halt the insanity. Or is it pride driven even if it begins to lose practicality?
You'll know its gone too far when they start promoting row spacings over 12 inches again. Fewer shanks in the ground or the same spread over a wider width....because of HP or traction limitations. They have to sell you the concept so you buy the sales pitch and machine. Some Buyer's egos are the Dealerships best salesman.

[Partners]

Watson area..

[MBgrower]

Resale value on that seeder will be terrible.