Amherst WI | john holland - 3/8/2024 14:06
What I've been told of the 80s is that everyone was heavily leveraged because that was the only way to do anything and it had been working great for a while, then below cop grain prices for years and daily fire sales happening. Price of land will not drop without fire sales happening and you will only see fire sales when farming is unprofitable with no hope for profitability in the future. Everyone always forgets that the times that land price is down sharply is the same time that they will be unable or too scared to buy, that is why it is dropping.
There is an ag banker on twitter that is always preaching leverage for the next thing and to always be growing. That's all fine until it isn't. As a student of the 80's that's always in the back of my mind when we are making large purchases. |
State of Ag Banking
