Another BTO bites the dust

[malleefarmer]

A all to common story i suggest.

https://www.wsj.com/articles/two-brothers-tied-to-the-land-face-wrath-of-americas-farm-bust-1513615986

[Guest]

wow, 40 mil under water !bet it looked good from the road, though

[bgmb]

farmed 50,000 ac and only worth 16 million at the peak wow.

[Kinger]

Only owned 160 acres of it. Rest was rented.

Equipment would have been the only real equity. Even that sounds highly leveraged though.

[bucket]

Equipment has no equity .....it depreciates....to zero!!!!!!

[Kinger]

Yeah equity may be the wrong word.

Asset would likely be the better terminology.

Would actually only ever depreciate to what the scrap value of the machine is.

[bgmb]

I would imagine the only equity he would have would be profits from the good years of 6-7 dollar corn. article also says he was a potato and beet farmer. 50,000 ac of that crop mix would be pretty profitable on the way up.

[Guest]

Equipment has no equity .....it depreciates....to zero!!!!!!

lots of farm tractors that were bought used have appreciated . guess you haven't tried to buy a 20 year old tractor lately ! I know they're not real dollars anymore but it's the same for all things you are buying or selling . we bought a 1995 9270 case about 15 yrs ago for 59k with 3000 hrs , could easily get $70 k now with 4800 hrs . lots of examples like that . the worst beating is at Ritchie's after 1 or 2 years and green dealerships are causing that . land is definetly a better investment , but you need the riggin too, and lots of it , especially with our narrow little window here to grow a crop . just have a look at some farm sales with 10 year old well looked after iron , you'll find it's far from worthless

[farmaholic]

The lack of iron equity is probably because the iron is leased....pay to use.

[SASKFARMER3]

Oh but Canadian BTOs will survive