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Two years and the last land I bought would be paid in full. Meaning I bought some for 400 an acre. Pretty simple decision here. Don’t let someone’s insanity cloud your vision.Last edited by Sheepwheat; Dec 11, 2022, 09:50.
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79 was just like this
Lost a lotta neighbours in the 80’s
Peering over the edge of the cliff right now
These greedy fellas that get top dollar , then not get paid down the road will be pleading with the “lifers†to farm it for taxes if history repeats
It normally does ?
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history has proven, in my experience watching from the sidelines, the best farm operators are the ones that pay the most, and then get the best write downs in the backrooms of the lender.
Why , you may ask. Because the lender that borrowed the money will look bad if they don'r recoup something.
If grain prices drop well below current levels , none of the equipment or land let alone inputs , will make sense. Even on well equity farms.
I remember being told pea prices won't drop below 6 bucks and by harvest they were 4.75 a bushel.
And typically, grain prices drop far sooner than anything else.
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Penciling out returns before it's in the bin can lead to some very tough financial consequence.
Greed and fear will get you every time!
Slow and steady wins the race!
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Originally posted by BTO780 View Post$20 canola @ 50
$30 lentils @ 30
$30 chickpeas @ 30
$14 durum @ 50
Math is quite simple actually.
35 canola
30 lentils (but can hardly grow them because of aphanomyces)
0 (can't grow chickpeas because of elevation and moisture. Some have tried and have gotten green chickpeas at best)
40-45 durum
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What would I do? I wouldn't judge someone in a completely different area, in a completely different climate growing mostly different crops, who possibly has more insights into potential inflation going forward.
Then, I will be glad that no one has decided that renting land out here in the cold wet swamp is worth nearly as much, yet.
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Most of the neighbors I lost in the 80s and 90s were too small to survive the margins. Most did not go bankrupt here.
There was an exponential jump in economy of scale. Of course interest rates didn't help anyone. Perhaps I'm splitting hairs between insolvency and bankruptcy.
We might be approaching a similar. I don't know. My bank friend says most operations may mismanage debt but still have high equity. Most of the time iron addiction a factor in problems.
We never had idle acres here at the time. Won't this time either. I only see rents plateauing. Still a fair amount of low cost land leveraging expansion. Operating costs will go down, eventually....
I likely won't be at it long enough to see it go down by much. No bets on 10 years out.
Supply demand still functioning.
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Near 200k for renting 6 quarters.
That will clean up a lot of sunsetters.
Might bring more land to market but will be a small group of renters?
Only takes 2.
A gamechanger.Last edited by shtferbrains; Dec 11, 2022, 16:09.
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