Bucksnbears
Well-Known Member
That was a good watch.
Caught myself tearing up a couple times.
Caught myself tearing up a couple times.
DMarley83
DMARLEY83
I watched a lot of that when it aired. Learned quite a little. I've heard of 21% intrest rates but dang that would hurt!
Think about that. Say a farm is thumping along at a 10% ROI… which is really good …. Say it’s 50% paid for…. @ 20% interest you are broke.
But farms weren’t even doing 10% roi. Most were just making it even with no debt. Some losing $. Hence the collapse!!!! The great farm corrections have happened 2 times in last 100 years. I would GUESS there’s another one in our lifetimes. Maybe not …. But I sure would be prepared for one.
Farm crisis of 80’s is another reason hunting land had “no value”. “Waste ground”…. If you couldn’t make $ on good black dirt & couldn’t hold onto that- u sure ain’t gonna wanna have timbered land!!!!!!
Nrharris
PMA Member
This topic is always interesting to me. Im really conflicted on it. It was terrible for a lot of guys, but that's when my family really got their start farming. My grandpa started from nothing in the 60's. He sold the family car to buy a tractor to start farming. He bought where our home farm is in the late 60's. My family expanded their land base in the 80s and 90s when guys were afraid to buy. Dad bought a lot of land that cash flowed right from the start. His banker talked him out of buying several other pieces of land that he should have bought but it's easy to say that after the fact. My dad owns a short 1200 acres of land all within 4 miles of home. Without the crash, there is no way we own anywhere near that much land today and I probably wouldn't be farming today. So even in a crisis there was tremendous opportunity for some.
Hardwood11
It is going to be a good fall!
I finally had time to watch this documentary! Really good, sad times for rural America. How times have changed !
This brings tears to my eyes every single time I hear it. Lots of folks lost their farm here in NW MO. I know a guy who just finally got his dads farm all bought back. He is in his 70s now. Pain runs deep on this subject. My guess is it sold for about $150/acre on the court house steps. I was thinking the last chunk he got back was about $11,000.
Hardwood11
It is going to be a good fall!
I don’t know how Paul Volcker the Fed chairman thought it was a good idea to raise interest rates above 10%?
That seems insane now ?
It cost a lot of good people their farms !
That seems insane now ?
It cost a lot of good people their farms !
bingo!!!! When 99% of people think back on real estate - it’s the Rosie memories! “I shoulda bought more”. Most purge the downtimes out of their minds. Heck, 2008-2010…. Dudes couldn’t sell farms. I Personally know at least a dozen guys that went bankrupt playing the land game. Was a great time to buy. That was just 15 years ago. Maybe 1 buyer for every 5 farms people wanted to sell. There’s mini versions of the same thing even after that…. 2012-2013 grain spiked high!!! Then dropped in half in like ‘14 or ‘15. ‘15-‘19 …. Could buy tillable around me for half of what it was bringing. & we did buy some. No one wanted to buy (in reality, just very few wanted to buy & offered really low prices).
To think there won’t be repeats of exactly what I saw all over southern 1/3rd the state in last 15 years - one would be foolish to think it won’t happen again. Doesn’t mean collapse. But “holy cow that slowed way down!!” Or “big price reductions” or “farms just sitting on market for sale”….. matter of time. & that’s when I’d try my hardest to buy more if I wanted to grow.
