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Nw Iowa | The biggest issue in 80’s “here” because every area different was reckless lending. A lot of current ratios that bankers use today was developed after the 80’s crisis. I don’t think 10-12% interest will cause anything like we seen in the 80’s. Now 12% and grain embargo or war with China causing grain prices to crash may be a different story. Right now we are correcting because 7$ corn caused us to over produce. Yes we have inflation and 8-9% interest rates but reality is there is too much corn. This is a normal cycle, we have to get price low enough to create new demand. We are only in first 6 months of what normally is 2-4 year correction unless Mother Nature throws a curve ball. A lot of inputs will also have to correct as well. I am not trying to be smart or act like I know anything more than anybody else but just beat up enough over the years to understand we have to have these corrections or things get even further out of hand. | |
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State of Ag Banking
