Richie Bros-SASK Spring Yard Sales-OMG WHAT IS GOING ON

[Herc]

All I know is when Monette’s farm shows up in Ritchie catalogue, I’m going there to buy a grease gun. Probably never been used....

[jazz]

Monet is interesting I would love to know the Banker. And I think I know the end game canada pension or Ontario teachers.

You can easily find that out, its all over the titles. Load one up, pay a few bucks and you can see the GSA for all their land.

I suggest you sit down and have a stiff drink before you load it up.

Now you know whats its like when I have to take the ditch with my ol 9600 while they move 10 combines and 4 carts past me.

[ry0972]

SO.... How long before RB announces that all spring yard auctions will be online only?
No bidders in stands or onsite on sale day!!!!
Even some of the farm sales would be limited access with the max attendance rules in some provinces( max 100 or 200)!!!

[nop]

SO.... How long before RB announces that all spring yard auctions will be online only?
No bidders in stands or onsite on sale day!!!!
Even some of the farm sales would be limited access with the max attendance rules in some provinces( max 100 or 200)!!!

Friend told me their Germany sale is online only, coming up in 2 weeks

[Austrian Economics]

As farms grow exponentially larger, they have to have large payrolls with employees who may or may not know now to fix a piece of equipment. If you lease and get new stuff every year, the dealer does the fixing. That said, these large farms are like any large corporation nowadays. They operate on extremely thin and declining margins with high debt levels. They hope to make up for the falling margins on increasing volume.

We are nearing an inflection point where, if there are not interest rate cuts and soon, the debt burden will force some into default.

[Taiga]

Another interest rate cut today, party on a little longer.

[LEP]

Friend told me their Germany sale is online only, coming up in 2 weeks

Great for business with all those online buyers fees.

[Austrian Economics]

Credit for the Wolfe Farms deal would have been arranged months ago in what is now a very different economic climate. You may get a different answer from a banker when you ask for a $30 million loan today. I have to wonder how much of that loan is locked in for how many years. I've spoken to farmers who bought land about a year ago and locked in 4.5% on a big portion of the loan for 20 years in the belief that interest rates are bound to go up.

It's even worse if, for deals this big, the buyer floats a multi decade bond which is not uncommon in the corporate world. You can't go back to the bond holder and demand an interest rate cut just because the Bank of Canada lowered rates.

In my view, this strategy may turn out to be a tragic mistake. When interest rates continue their downward trend into negative territory, your competitors may be able to get a land loan for 1% interest. They will convert the interest saving into a bid on the asset and you won't be able to touch it.

These are interesting times to say the least.

[jazz]

Credit for the Wolfe Farms deal would have been arranged months ago in what is now a very different economic climate. You may get a different answer from a banker when you ask for a $30 million loan today. .

I disagree, credit just loosened big time. They will be giving loans away like candy now.

[Austrian Economics]

I disagree, credit just loosened big time. They will be giving loans away like candy now.

I don't think it has loosened enough. To get a surge in borrowing, the rate of interest has to get below the rate of return of the marginal borrower. We'll see if these rate cuts do it, but my guess is that they will not.

My best guess is that interest rates have to be lowered at about the same magnitude as they were post- 2008. Around 5% off the last peak.

That puts the short term rate well into negative territory, around minus 2.5% based on the point at which rates peaked in this current falling interest rate mini-cycle.

The central bank essentially has no choice but to follow the yield curve down. If they are stubborn, it will stay inverted and blow up the banking system.